Littler Global Guide - Egypt - Q1 2024

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Increase of the Minimum Wage for Private Sector Employees

New Order or Decree

Authors: Alia Monieb, Partner and Head of Employment, and Rawan Roshdy, Associate – ADSERO - Ragy Soliman and Partners

Effective January 1, 2024, the Ministry of Planning and Economic Development raised the minimum wage of private sector employees from EGP 3,000 to EGP 3,500.

Statutory Annual Raise

New Order or Decree

Authors: Alia Monieb, Partner and Head of Employment, and Rawan Roshdy, Associate – ADSERO - Ragy Soliman and Partners

Based on the Ministry of Planning and Economic Development Decree No. 90 of 2023, dated December 11, 2023, effective January 1, 2024, the minimum periodic statutory annual raise for fiscal year 2024 must be at least 3% of the social insurance salary, as defined under the social insurance law, with a minimum of EGP 200.

Proposed Draft Labor Law

Proposed Bill or Initiative

Author: Alia Monieb, Partner and Head of Employment – ADSERO - Ragy Soliman and Partners

A new draft labor law (the Draft Law) has been approved by the Senate and is expected to be issued soon, entirely replacing current labor Law No. 12 of 2003. Following are some of the principles and provisions of the Draft Law, which may be revised when the final draft is published.

New Principles:

  • The employment contract is for an unlimited time period but may be made for a limited time period of not less than one year. The employment contract will be deemed unlimited if it is renewed for more than four years.
  • Confirms the legal obligation to hire persons with disabilities in line with law no. 10 of 2018 on the Rights of Persons with Disabilities.
  • In line with the Personal Data Protection Law No. 151 of 2020, obligates employers to maintain the confidentiality of employees’ medical check-ups and their medical status.
  • Penalties on employers have been increased for failure to comply with forced labor and discrimination restrictions.

New Amendments:

  • Female employees will now be entitled to maternity leave after six months with their current employer, instead of 10 months at any employer. Maternity leave will increase to four months, with a maximum of three leaves during the employee’s service.
  • Female employees are entitled to childcare leave up to three times during their employment, under certain conditions. This amendment complies with Child Law No. 12 of 1996 and resolves the conflict between this law and the current labor law.
  • Paid sick leave would increase from six months to a total of 12 months annually.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.