International employers who hope to grow their remote teams or expand into African, Asian, or European territories would do well to explore the talent pool in Egypt. The country is located in a strategic trade location. On top of that, the people of Egypt are adaptable to new work environments and educated in areas like medicine, engineering, and information technology.

You may be looking to add Egyptians to your team right away, but our best advice is to learn about Egypt labor law first. The mandates and requirements associated with bringing on Egyptian talent can be surprisingly stringent. And non-compliance can cost a company financially and ruin its reputation in the international sphere. Plus, to entice employees to work for your company, you’ll need to offer law-mandated benefits at a minimum.

Nailing down the benefits you need to include in your employee benefits package can be difficult, especially for a foreign country. And that’s why we created this guide to employee benefits in Egypt. By the end of this employee benefits guide, you’ll know about the mandatory benefits required by Egyptian law, supplementary benefits to consider, and how to build a good benefits package for Egyptians.

Labor Laws in Egypt

Egypt labor law is the foundation of all employee benefit mandates in the country – of all the pieces of legislation put forth by Egyptian authorities, Egypt Labor Law No. 12 of 2003 is the most critical. It regulates various aspects of the employer/employee relationship, including:

  • Working hours
  • Break periods
  • Maternity leave
  • Sick leave
In the research phase, most of your time should be spent on the above law. But there are other laws referenced in the above labor law – it pays to look at those as well. The goal should be to cultivate a good basis of understanding so you can offer the right benefits to your Egyptian workers in the future.

Translated versions of Egypt labor laws are not considered official. But they come in handy when attempting to decipher the regulations. 

Mandatory Employee Benefits in Egypt

As you’re planning out your employee benefits in Egypt, the first thing to do is learn about the mandatory benefits you’re required to provide. We’ll outline these non-negotiable benefits below:

Social Insurance

Per The Social Insurance and Pension Law (Law No. 48), workers in Egypt are entitled to social insurance to provide financial support in the event of incapacitation. As of the past year, there have been reforms in this area to allow for more extensive benefits and less rigid requirements for employee eligibility.

The social insurance scheme includes coverage for the following:

  • Health insurance
  • Disability
  • Maternity
  • Family allowances
  • Sickness
In 2024, employees and employers were expected to contribute 21% of the employee’s wages to social security schemes – the worker gives 9% and the employer gives 12%. This is for salaried workers only.

Annual Paid Leave

Annual paid leave is a mandatory benefit. Egyptians who have worked for at least a year at their current company get 21 days off per year and receive 100% of their normal pay rate. After the worker has hit their 10-year work anniversary, they are eligible for 30 days of annual paid leave.

Workers who have been working for a business for 6 months to less than 12 months will receive prorated paid leave. If a worker hasn’t yet made it to 6 months, they don’t receive a leave benefit. Here’s the information shown in a table:

Length of EmploymentAnnual Paid LeavePay Rate
Less than 6 months of employmentNo leave benefitN/A
6 months to less than 12 monthsProrated paid leave100% of normal pay
1 year to less than 10 years21 days of paid leave100% of normal pay
10 years of employment30 days of paid leave100% of normal pay
Those who work in dangerous professions or in remote areas get an extra 7 days of annual paid leave per year.

Public Holiday Leave

Workers in Egypt get up to 13 holidays off with full pay. If, for some reason, a worker needs to work on a public holiday, they should receive double their usual wage. Here’s a list of the public holidays in Egypt:

  • January 07 – Coptic Christmas Day
  • January 25 – January 25th Revolution and National Police Day
  • March 30 (Date varies) – April 01 – Eid Al-Fitr
  • April 21 (Date varies) – Sham El-Nessim
  • April 25 – Sinai Liberation Day
  • May 01 – Labor Day
  • June 05 (Date varies) – Arafat’s Day
  • June 06 – June 09 (Date varies) – Eid Al-Adha
  • June 26 (Date varies) – Islamic New Year
  • June 30 – June 30 Revolution
  • July 23 – The July 23 Revolution Day
  • September 04 (Date varies) – Prophet Muhammad’s Birthday (Mawlid Al-Nabi)
  • October 06 – Armed Forces Day

Sick Leave

Sick leave is an Egyptian right, so if your workers get sick, you should be prepared to offer them time off. Compensation for this benefit should be full pay for the first month, 75% of pay for the next eight months, and no pay for the last three months. Per law, there’s only one sick pay leave entitlement in a three-year period.

Maternity Leave

Maternity leave in Egypt is very straightforward – 90 days with full pay throughout. The leave may be used pre- and post-birth, but at least 45 days should be used after the birth. To prove necessity, the worker should bring in a medical certificate from a medical provider.

This benefit should not be used more than twice in a woman’s period of service.

Minimum Wage

As of the year 2024, Decree No. 27 of 2024 mandated a monthly minimum wage of EGP 6,000. It equates to $119 USD. This wage minimum is specifically for those who work in the private sector.

It’s worth noting that this minimum wage has increased at least five times since the year 2022. If the trend is to continue, we’re likely to see more wage hikes in the near future. We recommend keeping an eye out for new developments in this area and double-checking before sending offers to prospective Egyptian employees.

Supplementary Employee Benefits in Egypt

Outside of the mandatory benefits outlined above, it’s critical to look into including supplementary benefits as well. Though these extras will add to your hiring costs, they’re worth every employer’s consideration because of the below advantages:
  • Increased ability to draw in candidates that otherwise would’ve entertained other offers.
  • Better team morale and higher-quality work stemming from the understanding that they’re valued.

Here are some supplementary benefits to consider:

  • End-of-service gratuity for those who have hit certain work milestones. This is not a mandated benefit as of the time of this writing, but it could easily appeal to candidates.
  • Accommodation allowances, specifically for those who are made to relocate to take a position you’re offering.
  • Transportation allowance for positions that require the employee to travel.
  • Paternity leave for fathers who have just welcomed a baby. There’s no mandated benefit for paternity leave; allowing time off for fathers in your company would likely be very much appreciated.
  • Extended health insurance to make it easier for your Egyptian employees to find and obtain the healthcare services and medications they need. Vision and dental coverage are valuable benefits as well.
  • Flexible working hours for jobs that are well-suited to this type of arrangement.
  • Freedom to work from home all or part of the week.
  • Paid maternity leave with benefits that go beyond the rules put in place by the law.
  • Performance bonuses to boost morale and encourage friendly competition in the workplace.

How to Build an Effective Employee Benefits Plan for Egyptians

Building an effective employee benefits plan for Egyptians is difficult when you don’t know where to start. That’s why we’ve outlined some of the most helpful tips to keep in mind throughout the benefit package creation process:
  • Take a good, hard look at the employee benefits in Egypt. The focus should be on full-text laws rather than pared-down versions of the legislation. Once you have a solid grasp of the laws, research updates to the laws – they’re constantly changing. If you need help with this step, don’t hesitate to reach out to a lawyer with experience in international labor law. Note all the details surrounding mandatory benefits and employer obligations.
  • Look over supplementary benefits to consider offering to your employees. Closing your eyes and choosing them at random may not work. Different types of employees appreciate different benefits, and you need ones that really make an impact on workers’ lives. So, take some time to brainstorm and get to know the types of people you intend to hire.
  • Draft your employee benefits plan and package it into a simple, easy-to-digest format that most would find readable and understandable. Use a clean layout and limit jargon. If workers can’t easily understand your benefits plan, something is wrong.
  • Update the plan as necessary. Always keep an eye out for changes in legislation and rules surrounding employee benefits in Egypt. And as you notice changes, ensure they’re reflected in your employee benefits plan right away.

So, there you have it – the basics of employee benefits in Egypt. We hope you found all the information you were looking for in this employee benefits guide, and we wish you the best as you expand your business into new territories.