Egypt’s House to discuss new amendments to Labor Law next week… Key points you should know

CAIRO – 15 March 2025: Egypt’s House of Representatives (the lower house of the parliament) will discuss the new amendments to the Labor Law next week.

According to the new draft law, the retirement age for both public and private employees will not be set below 60. Employers also have the right to terminate the contract when an employee reaches the age of 60, unless the contract period extends beyond this retirement age.

The provisions of the Social Insurance and Pensions Law will apply regarding the age of entitlement to a pension. The law stipulates a gradual increase in the retirement age to 62 by 2032 and to 65 by 2040

The new amendments to the Labor Law also stipulate that workers are entitled to a bonus for the period worked after the age of 60. The bonus is calculated at half a month's wages for each of the first five years, and a full month's wages for each subsequent year, provided the worker does not already have entitlement to this period under the old-age, disability, and death insurance provisions outlined in the Social Insurance Law.

The draft law prohibits the employment of children under the age of 15, and stipulates the establishment of a fund to protect and employ irregular workers.

The law abolishes arbitrary dismissal. In the event of an employee's dismissal in the private sector, the draft law stipulates that the worker be compensated with two months' wages for each year of service, should the dismissal be deemed arbitrary.

The draft law stipulates that pregnant women’s daily working hours be reduced by at least one hour starting from the sixth month of pregnancy. They cannot be required to work overtime during their pregnancy and up to six months following delivery.

Furthermore, the law grants a one-day paternity leave upon the birth of a child. It also prohibits the dismissal of a female employee during childbirth and grants her three months of paid leave.