Egypt

HR and HR Software Guide

Country Overview

The economy of Egypt is driven by petroleum products, tourism, natural gas, media, and agriculture. The country has developed a robust energy market based on natural gas, coal, and hydro power. Since 2000, the introduction of structural reforms including fiscal policies, taxation, new business legislations, and privatization have helped Egypt become a market-oriented economy and attract increased foreign investments. GDP growth is likely to average 3.5% during 2017-30, with labor productivity growth being a major contributor.

Currency: Egyptian Pound

Principal Language: Arabic

Government: Semi-presidential System

Capital City: Cairo

Major Provinces: Alexandria, Giza, Port Said, Suez

The Labor Law limits the work schedule to 8 hours per day and 48 hours in a week. Employees cannot be asked to work for more than 5 hours continuously and must be given a one-hour rest break during a day. Employees are also entitled to a 24-hour rest period after 6 working days.

Overtime
Employees who work in excess of 8 hours in a day are paid at 35% premium over their regular pay for overtime during daylight hours while those who work overtime at night receive 70% premium over their regular pay. Employees cannot be asked to work overtime for more than 2 hours in a day. Employees who work on weekends receive twice their regular pay and get an additional day off. Even those who work during vacations also receive twice the regular pay.

Holidays
The following national holidays are observed in Egypt:

  • Islamic New Year
  • Birthday of Prophet Mohammed
  • Eid al Fitr (2 days)
  • Eid al Adha (3 days)
  • Eastern Christmas
  • Revolution Day
  • Sham El Nessim
  • Sinai Liberation Day
  • Labor Day
  • Revolution Day
  • Armed Forces Day

Employees can be requested to work on a national holiday if it is necessary and are provided twice their normal pay.

Vacation
Employees with at least 1 year of continuous service receive 21 days of paid annual leave. The annual leave increases to 30 days for those who have worked for more than 10 years continuously or have reached the age of 50. The employer decides the dates for vacation based on the business requirements.

Maternity Leave
Pregnant employees who have worked for a minimum of 10 months are entitled to 90 days of maternity leave. Maternity leave is given only twice to working mothers during their service with an employer. They can’t be asked to work during the 45 days after childbirth and are also entitled to unpaid maternity leave not exceeding 2 years to care for their child.

Paternity Leave
The Labor Law of Egypt does not have provisions for paternity leave.

Sick Leave
Employees with a medical certificate confirming their sickness are entitled to paid sick leave equal to 75% of their social insurance wage for 90 days, after which it is paid at 85%. Sick leave cannot exceed 180 days. Employees can use their annual leave for sick leave and can also convert their unused sick leave into annual leave.

Other Leave
Employees are entitled to 1 month of paid leave to visit Jerusalem or to perform the Hajj pilgrimage after 5 years of continuous service. This leave is given only once.

Pensions and Social Security
Egyptian employees receive old age, pension, and survivor benefits under the Social Insurance Law. Foreign workers, except those whose countries have entered into treaties with Egypt for social insurance coverage, are not required to make social insurance contributions.

Workers’ Compensation
Employees who suffer an injury or contract an illness when at work and that prevents them from working satisfactorily receive full compensation during their absence from the Social Solidarity Ministry. Employees who wish to re-join work after an injury/illness are examined by a committee formed by the ministry. The committee decides whether the individual can be reassigned and checks if same/similar vacant positions are available.

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