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One of the first steps you should take if you want to do business in Egypt, whether to set up a new operation or to grow an existing one, is to find qualified local workers to join your team. But before you begin the recruitment process, you must learn about the local culture, labour laws, and other factors that may affect your hiring decisions.
Working hours, wages, and other aspects of the workplace are all strictly governed by Egyptian law. These laws safeguard employees’ legal rights, and employers must honour them.
In addition to paying their employees a fair wage and allowing them a reasonable number of hours per week to work, businesses are responsible for ensuring a safe workplace. When paying employees in Egypt, businesses must withhold a portion of each paycheck for the government and the social security system.
Egypt is a desirable location for companies seeking to hire remote workers due to the country’s strategic location and rich cultural heritage. Egypt is home to a sizable and diverse workforce, many members of which are well-versed in the English language.
Its high number of college graduates in technically- and business-oriented fields makes it a promising source of remote talent. In addition, the Egyptian government provides tax breaks and subsidies to businesses that employ remote workers.
Egypt is an excellent option for companies searching for remote workers due to the country’s large pool of skilled workers, cultural similarities, and supportive government policies.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Egypt. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Egyptian employee with Native Teams.
Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Egypt.
Egyptian Labour Law No. 14 of 2025 establishes the fundamental rights and obligations of employers and employees and provides the main legal framework governing employment relationships throughout Egypt.
The Ministry of Manpower has a key supervisory role under the Labour Law. It issues executive and ministerial decrees that clarify and implement specific provisions of the law, including rules relating to minimum wage levels, annual salary increases, and standard internal work regulations
The Egyptian Civil Code (Law No. 131 of 1948) also applies to employment matters that are not expressly covered by labour legislation. This includes general contractual principles and certain post-employment obligations, such as non-compete clauses.
Employers must also establish Internal Work Regulations that are consistent with the Labour Law and have them certified by the Ministry of Manpower. These regulations operate alongside individual employment contracts and provide a practical framework for managing workplace rights and duties, employee and employer obligations, and disciplinary procedures.
Employment contracts can be classified into three main types:
An employment contract in Egypt should clearly set out the key terms of the employment relationship. It should include:
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Employment contracts must be in writing. Contracts must be prepared in Arabic and provided in four copies: for the employer, for the employee, for the Social Insurance Authority, and for the relevant administrative body.
The law recognises various employment arrangements, including full-time, part-time, remote, flexible and job-sharing arrangements.
Unlike in some jurisdictions, oral agreements are not recognised under Egyptian law as formal employment contracts.
The Labour Law does not expressly address electronic employment contracts. However, an electronic contract may be considered valid if it satisfies the applicable written requirements and is properly documented. It must also be in Arabic and fulfil the applicable copy requirements.
Under Egyptian labour law, working hours are generally limited to a maximum of eight hours per day and 48 hours per week, excluding designated meal and rest breaks.
The Ministry responsible for labour affairs may reduce these limits for certain types of work, industries or categories of workers where health, safety or operational considerations require shorter working hours.
The total time an employee may be required to spend at the workplace, including both working hours and breaks, must not exceed 10 hours per day.
An exception may apply where the nature of the work is classified as intermittent by ministerial decision. In such cases, employees may be permitted to remain at the workplace for longer periods, provided this does not compromise their safety or well-being.
In exceptional circumstances where continuous work is necessary to address urgent operational needs or unusual workload demands, employers may temporarily extend working hours beyond the standard limits. Any such extension must follow the procedures prescribed by the relevant labour authority, including notifying the appropriate administrative body and obtaining approval before implementing the extended schedule.
Night shifts are generally treated as overtime work under Egyptian law. Since a standard workday typically ends by sunset, any work extending into the night is considered overtime. Employers are legally obligated to compensate employees working night shifts at a premium rate.
Specifically, work performed between sunset and sunrise qualifies as nighttime overtime, which entitles employees to a seventy per cent (70%) premium on top of their regular wage.
Employees are entitled to one or more breaks during the working day, with a total break period of at least one hour for meals and rest. Employees may not be required to work for more than five consecutive hours without a break, helping to structure the working day in a way that protects employee well-being.
The Labour Law also requires employers to provide a weekly rest period of at least 24 consecutive hours, usually after no more than six consecutive working days. This weekly rest day is paid and forms part of the employee’s minimum statutory entitlements.
Employees are entitled to paid annual leave based on their length of service and, in certain cases, their employment circumstances.
Public holidays, official days off and weekly rest days are not counted as part of an employee’s annual leave entitlement.
Employees engaged in strenuous, hazardous or unhealthy work are entitled to an additional seven days of annual leave per year. The specific jobs and activities that qualify for this additional entitlement are determined by a ministerial decree issued by the Ministry of Manpower after consultation with the relevant authorities.
Employees who are also students may schedule their annual leave to coincide with their examination periods, provided they notify their employer at least 15 days before the intended start date of the leave.
Juvenile workers may not divide, combine or postpone their annual leave. This ensures that they receive a full, uninterrupted period of rest each year.
The national minimum wage in Egypt is set by the National Wages Council. This applies to all private-sector employees unless a higher wage is stipulated by a collective agreement or company policy.
According to Labour Law No. 14 of 2025, it is strictly prohibited to discriminate against employees on the basis of sex, origin, language, religion, creed, or any other grounds when setting wages. Employers must ensure equal pay for equal work in similar conditions.
Wages may be determined through individual employment contracts, collective labour agreements or establishment regulations approved by the Ministry of Manpower. If a wage is not expressly stated, the employee is entitled to receive a fair and equitable wage, which is consistent with the nature of the work and prevailing market practices. If no such standard exists, the wage will be determined by the competent authority or the Labour Court.
For employees whose remuneration is based on production, commission or performance, total earnings must not fall below the statutory minimum wage.
Wages and any related payments must be made in lawful Egyptian currency. Employees on fixed salaries must be paid at least once per month, while those paid by the piece or on commission must be paid weekly or fortnightly, in accordance with their employment contract or established practice.
Upon termination of employment, the employer must promptly settle all outstanding wages and dues. In cases of employee resignation, payment must be made within seven days of the employee making a written claim.
To calculate the salary and taxes in Egypt, click here.
Employees working in industrial establishments covered by the applicable industrial legislation are entitled to a structured sick-leave regime under the new labour law.
Sick leave is granted for every three years of service, provided that a competent medical authority certifies that the employee is unable to perform their duties. Under this system, employees receive their full salary for the first three months of sick leave, followed by six months at 85 per cent of their salary, and a further three months at 75 per cent of their salary. The continuation of sick leave throughout these phases depends on the medical assessment of the employee’s likelihood of recovery.
Female employees are entitled to 120 days of fully paid maternity leave, covering the period before and after childbirth. To qualify, the employee must provide a medical certificate specifying the expected date of delivery.
Employees are not required to work during the 45 days following childbirth. Maternity leave may be granted up to three times during the course of employment with the same employer.
Male employees are entitled to one paid day of paternity leave on the day their child is born. This entitlement may be exercised up to three times during their employment.
The law distinguishes primarily between lawful termination for legitimate reasons and termination without cause, rather than between subjective or objective grounds.
Legitimate reasons for termination are narrowly defined and generally relate to serious misconduct or other violations explicitly recognised under the labour law. These may include matters such as forged documents, disclosure of confidential information, serious damage to the employer’s property, assault, or unexcused prolonged absence.
Poor performance or general inefficiency is not considered a lawful cause for dismissal under Egyptian law.
Economic or technological restructuring may allow the employer to reduce staff levels, but such measures must follow prescribed legal procedures and are not treated as “objective grounds” in the contractual sense.
For indefinite-term contracts, employers may terminate the employment relationship without cause by providing the statutory notice period and paying the legally required compensation, in addition to complying with all procedural safeguards under the labour law.
For fixed-term contracts, early termination is significantly more restricted. A fixed-term contract normally remains in force until its agreed expiry date unless termination occurs for a legitimate statutory reason, the employee resigns, or both parties mutually agree to end the contract. Termination by the employer without a legally recognised cause constitutes unlawful early termination and entitles the employee to statutory compensation.
Although courts may be involved in disputes regarding the lawfulness of termination, the law does not require the employer to obtain a court ruling in advance to terminate a fixed-term contract. Rather, any unlawful early termination exposes the employer to financial liability, which the employee may pursue before the labour courts.
An employer may terminate employment in the following circumstances:
Employees who believe their dismissal was unjustified or contrary to the law may challenge it.
The process begins with the employee submitting a complaint to the Ministry of Manpower within 60 days of the termination date. The Ministry will first attempt to reach an amicable settlement between the parties. If the dispute cannot be resolved, it is referred to the Specialised Labour Court, which has exclusive jurisdiction over individual employment disputes.
When terminating an indefinite-term contract, employers must comply with the statutory notice requirements, except in cases of gross misconduct or summary dismissal where permitted by law.
The statutory notice period is:
No notice is required when a fixed-term contract expires on its agreed end date.
If an employer fails to provide the required notice, the employee is entitled to compensation equivalent to their wages for the applicable notice period.
To qualify for unemployment benefits in Egypt, individuals must meet certain eligibility criteria designed to ensure that support is provided to those who genuinely need it. The key eligibility requirements include:
If an employer terminates an indefinite-term employment contract without a reason recognised as legitimate under Labour Law, the employee is entitled to compensation for unlawful termination.
This compensation must be at least two months' full salary for each year of service. This amount serves as a statutory minimum, and collective agreements or company policies may provide for higher payments.
For fixed-term contracts terminated by the employer before their expiry, the employee is entitled to compensation equivalent to one month's salary for each completed year of service, unless termination is based on a lawful reason set out in the contract or Labour Law.
When employment is terminated due to economic or structural reasons, the employer must still provide termination compensation, calculated in the same way.
Severance and termination compensation are generally calculated based on the employee’s gross wage, including basic salary and fixed allowances (such as housing or transportation allowances). Payment must be made at the time of termination, together with any outstanding wages and compensation for unused leave.
A probationary period is not mandatory in employment contracts in Egypt. Employers may choose to include one in an employment agreement to assess an employee’s performance and suitability for the role, but should consider the potential benefits and drawbacks before doing so.
Under the Egyptian Labour Law, the maximum probationary period is three months. Employers are strictly prohibited from extending the probationary period beyond this limit.
Once an employee has completed a probationary period, they cannot be placed on another probationary period for the same position with the same employer. This also applies where the initial probationary period was shorter than three months; the employer cannot extend it by imposing a new probationary period.
Employers typically hold the rights to inventions created during employment, while inventors are entitled to recognition and fair compensation.
Where an individual commissions another person to create a specific invention, the rights to that invention are typically vested in the commissioner.
Similarly, in an employment relationship, rights to inventions developed by an employee during their employment generally belong to the employer, provided that the invention falls within the scope of the employee’s work or employment contract.
Employee data privacy in Egypt was previously governed by general legal principles, including the Cybercrimes Law and the Constitution, which protect individual privacy and place restrictions on the use and disclosure of personal data. The introduction of the Data Protection Law (DPL) has established a comprehensive framework for data privacy and protection.
Under the DPL, data controllers and processors must establish a lawful basis for each data processing activity, including obtaining explicit consent from data subjects. Companies must also appoint a Data Protection Officer (DPO) to oversee compliance with the DPL and address any breaches.
The Labour Organisations Law No. 213 of 2017 sets out the role of labour organisations and works councils in protecting employees’ rights and addressing workplace issues. These organisations provide a forum for dialogue between employers and employees and support a fair and equitable working environment, including in matters relating to privacy and data protection.
During the term of the employment contract, employees are generally obligated not to engage in competitive activities that could undermine their employer’s interests. This duty stems from the inherent loyalty required of employees, which includes not working for or with competitors and not using proprietary information gained during their employment for personal or third-party benefit.
While the primary obligation of non-competition is effective during the employment period, employers may seek to extend this obligation beyond the contract's duration. This is often done to protect trade secrets and other business interests. For such an extended non-competition obligation to be enforceable, it must be explicitly detailed in a written agreement and meet specific conditions to be valid.
A valid non-competition agreement must be explicitly agreed upon in writing and be reasonable in scope.
To support the remote working strategy, several important laws have been enacted in recent years:
The New Labour Law No. 14 of 2025 complements these digital frameworks by affirming that standard employment protections, such as limits on working hours, overtime entitlements, health and safety obligations, confidentiality duties and record-keeping requirements, apply equally to employees working remotely or in hybrid arrangements.
Companies must provide employees with the appropriate digital tools and secure networks needed to work remotely. This includes the necessary hardware, software and reliable internet access to enable employees to perform their duties effectively from remote locations.
Cybersecurity and data protection are essential in remote work arrangements. Companies must comply with Egypt’s Anti-Cybercrime Law and should implement appropriate measures to protect company and client data, including:
These measures help prevent data breaches and cyberattacks and support the secure handling of information outside the traditional workplace.
Employees should also receive comprehensive training on using digital work tools effectively and securely. Training should cover company-specific software, data security best practices, and how to recognise and respond to potential cybersecurity threats.
Remote work can introduce additional health risks, including prolonged working hours without adequate breaks and the potential for isolation or stress resulting from reduced social interaction.
Companies should adopt policies to address these risks, including establishing clear guidelines on working hours and breaks and ensuring employees have the right to disconnect from work-related tasks outside normal working hours. These measures help support a healthy work-life balance when working remotely.
Hiring employees from Egypt offers several advantages over sourcing talent from other countries. First, Egypt has a large and growing talent pool, particularly in fields such as technology, engineering, healthcare, and business services. The country’s strong emphasis on education, along with an increasing number of skilled professionals, makes it an attractive option for companies seeking expertise.
Second, Egypt’s time zone aligns well with many regions, including Europe, the Middle East, and parts of Asia, facilitating real-time collaboration and communication for companies operating internationally. This can boost productivity and streamline teamwork across borders. Additionally, labour costs in Egypt are highly competitive, particularly when compared to Western countries. While navigating local labour laws may require some attention, the overall cost of hiring skilled professionals in Egypt can be more affordable, allowing companies to optimise their budgets.
Furthermore, Egypt’s strategic geographic location, serving as a gateway between Africa, the Middle East, and Europe, offers businesses access to emerging markets in the region. Hiring employees from Egypt can help companies establish a foothold in these key markets.
Lastly, Egypt has a rich cultural heritage, and many employees are proficient in English, particularly in the tech and business sectors. This cultural and language proficiency can be an asset for companies looking to engage in international markets or collaborate with global teams.
Overall, hiring employees from Egypt provides a combination of skilled talent, cost efficiency, and strategic positioning that can help enhance a company’s competitive edge in the global market.
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