The Labor Law No.14 of 2025, also known as Egypt's new labor law is a major milestone aiming to protect workers, modernize employment relations, and align national labor standards with international conventions. Officially enacted in May 2025 and effective from 1 September 2025, the new labor law delivers long-awaited protection for workers while also considering the needs of employers.
Key highlights with respect to employment
New terms of employment contracts
- The employment contract must be in Arabic and 4 copies shall be issued for employer, employee, labor office, and social insurance.
- Contracts are assumed to be indefinite unless otherwise justified.
- Recognized type of work are remote, part-time, gig/platform work.
- 3 months' notice for indefinite term contracts where there is no misconduct.
- 3% yearly wage increase on insurable wage.
Update in severance pay calculation
- For terminated workers, the severance pay will now be paid as 2 months wages per year of service.
Update in calculation of end of service compensation
- Workers on certain fixed term contracts will receive end of service compensation as 1 month's wage for each year of service.
Reduction in working hours and overtime exemption for women
- Women may reduce their working hours by 1 hour daily from 6th month of pregnancy
- Women will be exempted from overtime for up to 6 months after childbirth
Training fund contribution
- Employers with 30+ employees shall contribute maximum 0.25% of the minimum social insurance wage to the training fund
- Employers with internal training programs will be exempted.
Leaves
- The changes announced for various categories of leaves are employee friendly and provides more flexibility to the employees to work.
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Type of leave |
New law |
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Annual leave |
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Paid leave |
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Casual leave |
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Study and exam leave |
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Maternity leave |
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Paternity leave |
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Childcare leave |
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Our Comments
As the law takes full effect in September 2025, employers and employees alike must adapt to the new legal landscape. For employers, this means reviewing HR policies and ensuring compliance. For employees, it signals a new era of enforceable workplace rights and dignity. Although challenges remain in implementation, particularly educating employers and streamlining the legal framework to achieve a solid foundation for a modern, fair, and competitive labor market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
