Egypt: Adoption of the New Labor Law 2025

The Egyptian Parliament approved this Tuesday a series of major modifications made to the draft labor law, marking an important turning point in the evolution of the legal framework of professional relations in Egypt. These changes, discussed and amended in the presence of government and parliamentary representatives, aim to better regulate new forms of employment and to strengthen employees’ rights in a changing labor market.

A more inclusive definition of the employee

The new version of the law broadens the notion of “worker”: it now includes any person exercising an activity under the authority of an employer, even in the absence of a written contract. This legislative choice allows for covering a wider range of situations, notably in sectors where formal contracts are rare, thus offering more protection to informal workers.

Integration of modern forms of work

The text officially recognizes several emerging forms of employment:
• Activity via digital platforms, often part-time or with unconventional schedules.
• Flexible work, allowing adjustments to the hours, duration, or place of work according to agreed terms.

These additions reflect the adaptation of labor law to new professional practices in full expansion.

Operation of the revised National Wages Council

The role of the National Wages Council is confirmed and clarified. It will be responsible for:
• Defining the national minimum wage, taking into account the cost of living and productivity.
• Setting minimum periodic increases and their application modalities.
• Evaluating temporary exemption requests in the event of an exceptional economic crisis.

From now on, this council must meet at least twice a year, a frequency revised downward to adjust to the pace of economic developments without administrative overload.

Regulation of information on working hours

Companies must clearly display, in a visible location, the working hours, rest periods, and the weekly day off. Any modification of this schedule must be reported to the administration no later than seven days before its entry into force, in order to guarantee transparency towards employees and authorities.

Health measures in case of infectious diseases

A worker living with a family member affected by a communicable disease may be temporarily removed from their post, without loss of salary, for a maximum duration of three months, upon decision of the competent medical authority. The list of concerned diseases will be determined by the Ministry of Health. This provision aims to protect public health without harming employees.

A reform resulting from consultations

According to parliamentary representatives, the amendments were adopted following broad discussions between the government, unions, employers, and specialized commissions. This dynamic of dialogue made it possible to build more balanced legislation, taking into account economic interests while ensuring better guarantees for workers.

How TTE Gulf Supports Businesses Across the MENA Region

At TTE Gulf, we understand how critical it is to stay compliant with evolving labor laws – not only in Egypt, but across the entire MENA region. Our HR and legal support teams, based locally in the countries we operate in, are fully equipped to guide clients through the complexities of recruitment, employment contracts, and workforce regulations.

With our physical presence and dedicated experts in Egypt, the UAE, and Saudi Arabia, we help companies confidently navigate local labor frameworks, ensuring they remain both efficient and compliant in their hiring practices.

Thinking of hiring in Egypt but don’t have a local entity? No problem.

At TTE Gulf, we provide seamless payroll and HR solutions that allow you to hire and manage employees in Egypt – and across the MENA region -without the need to establish a local office.

Get in touch with our regional experts to ensure full compliance with local labor laws and simplify your workforce expansion.