Egypt recently adopted a new labor law that aims to modernize labor regulations by strengthening employee protection while promoting flexibility for employers. Key reforms include enhancements in maternity leave, childcare leave and annual leave; the introduction of paternity leave; changes in training fund contribution requirements; and new protections against workplace discrimination, harassment and bullying. The new law will take effect from 1 September 2025.
Background
The new labor law No. 14 of 2025 (the “New Labor Law”) is the result of several years of drafting, consultations and debate and marks a major shift in Egypt’s employment landscape.
The New Labor Law was published in the Official Gazette on 3 May 2025. It will come into force on 1 September 2025 and replace the current labor law No. 12 of 2003 (the “Old Labor Law”). Implementing regulations are expected to be published within 90 days of the new law’s effective date (i.e., by 30 November 2025).
The changes set out below will take effect from 1 September 2025, unless otherwise stated.
Key details
The following sets out major changes for employers to note:
Changes in statutory maternity leave
Employer-paid maternity leave will increase from 90 to 120 calendar days. This leave may be taken both before and after delivery, provided that the post-delivery leave period is not less than 45 calendar days. Additionally, female employees will be allowed to take this leave up to three times during their employment with the same employer, an increase from the previous limit of two times under the Old Labor Law.
Additionally, the minimum service requirement of 10 months of service to qualify for maternity leave has been abolished. Accordingly, female employees will be entitled to maternity leave from the first day of service.
Working hours during and after pregnancy
The New Labor Law introduces new restrictions on working hours during and after pregnancy. A pregnant employee’s scheduled daily working hours must be reduced by at least one hour starting from the sixth month of pregnancy. Additionally, employees cannot be required to work overtime during pregnancy and for six months after delivery.
Introduction of statutory paternity leave
Under the current law, there is no statutory entitlement to paternity leave. The New Labor Law introduces a new entitlement for male employees of one day of employer-paid paternity leave to be taken on the day of childbirth. This can be taken up to three times during a male employee’s service with an employer.
Childcare leave
Under the Old Labor Law, female employees in an establishment with at least 50 employees are entitled to unpaid childcare leave of up to two years, which can be taken up to two times during service with an employer. The New Labor Law increases this up to three times per employment. It also introduces a new minimum service requirement of at least one year with the employer to be eligible for this entitlement, as well as a new restriction that there must be a gap of at least two years between the first and second leave periods.
Annual leave
Under the Old Labor Law, employees are eligible for 21 working days of employer-paid annual leave only after completion of each year of employment. If an employee has yet to complete a full year of employment but has worked for at least six months, such employee is eligible for pro-rated annual leave based on their length of service.
Under the new law:
An employee will be entitled to 15 working days of employer-paid annual leave during the first year of employment (pro-rated based on length of service if the employee's period of service is less than one year but at least six months) and 21 working days of employer-paid annual leave per year starting in the second year of employment.
As a new entitlement, individuals with disabilities will be entitled to 45 days of employer-paid annual leave per year. However, this leave may not be split, carried over or deferred.
There are no changes in how the timing of annual leave is determined or how unused leave may be carried forward or encashed. The employer remains entitled to schedule employees’ annual leave based on work requirements and conditions, and employees must take annual leave as directed by the employer. Employees must take a minimum of 15 working days of annual leave per year, including at least six consecutive days. Any unused annual leave may be carried forward, but only for a maximum of two years, as employers are required to grant or encash any accumulated leave balance at least once every three years.
Emergency leave
While the timing of annual leave is determined by the employer, employees are entitled to be absent from work for emergency reasons, which is deducted from their annual leave balance. The New Labor Law increases the existing maximum entitlement to this emergency leave from six to seven days per year.
Under the Old Labor Law, there is no restriction on how many days of emergency leave can be taken consecutively by an employee. However, the New Labor Law adds a new restriction that only a maximum of two days of emergency leave may be taken consecutively.
Overtime
The New Labor Law removes the requirement for employers to obtain prior written approval from the administrative authority for any overtime. Instead, the employer will only be required to notify the administrative authority within seven days of the occurrence of exceptional or abnormal working conditions. The notice must set out justifications for the additional work and the estimated time required to complete the task.
Medical testing for drug use or infectious diseases
The New Labor Law sets out a new provision that requires employees to undergo medical testing for drug use or infectious diseases by the General Authority for Health Insurance or the Central Laboratories of the Ministry of Health, if requested by the employer and at the employer’s expense. If a positive result is confirmed, the employee will be referred to the competent labor court for adjudication. The new law also requires that employers must maintain confidentiality throughout the testing process, particularly in relation to the employee’s health status based on these tests.
Training fund contributions
Currently, employers with more than 10 employees are required to contribute 1% of the employer’s net profits to the Training and Rehabilitation Fund, a government fund responsible for financing vocational training centers and programs. Under the New Labor Law, this requirement has been relaxed to apply to employers with 30 or more employees, who will be required to make an annual employer contribution per employee of 0.25% of the minimum social insurance wage (as of 1 January 2025: EGP 2,300 per month), with a minimum of EGP 10 and a maximum of EGP 30 for each employee annually.
Protections against workplace discrimination, harassment and bullying
Under the Old Labor Law, protections against workplace discrimination were limited to discrimination in wages based on sex, origin, language, religion, or belief.
However, the New Labor Law significantly broadens these protections, prohibiting any act, conduct or procedure that results in discrimination or differentiation among employees. In particular, the New Labor Law explicitly prohibits discrimination in job postings, hiring, training, work conditions, and rights and obligations in employment contracts based on religion, belief, gender, origin, race, color, language, disability, social level, political or union affiliation, geographic origin, or any other factor that undermines the principles of equality and equal opportunity.
In addition, the updated legislation provides clear definitions of forced labor, harassment, and bullying and adopts a zero-tolerance policy toward all forms of harassment, bullying, or violence – whether verbal, physical, or psychological.
Obligation to submit labor report to Ministry of Labor
Article 8 of the New Labor Law requires all existing employers to submit a detailed report to the Ministry of Labor within 30 days of the law’s effective date (i.e., by 1 October 2025) of the number of workers categorized by qualifications, occupations, age groups, nationalities, gender, and salaries. Employers should ensure they comply with this obligation by the prescribed deadline.
Employer action: ACT
As the changes under the New Labor Law are extensive, employers are encouraged to work with their legal counsel to review the New Labor Law in its entirety to determine the specific changes applicable to them.
Employers should review and update their internal policies and procedures, as well as employee handbooks and contracts, where applicable, to ensure compliance with the New Labor Law. They may also wish to coordinate with their human resources service providers on changes to be made to existing processes and systems.
Employers should also monitor the release of additional regulations and regulatory guidance. The Lockton Global People Solutions Compliance Practice will update this article once key implementing regulations are released.
Written in collaboration with:
Yomna Soliman
Head of Medical Operations, Lockton Insurance Brokers – Egypt
yomna.soliman@lockton.com (opens a new window)
Nourhan Naguib
Legal Affairs & Compliance Officer, Lockton Insurance Brokers – Egypt
nourhan.naguib@lockton.com (opens a new window)
Further Information
