End of service in Egypt: what the employer owes
Resignation, termination with or without a lawful reason, and the end of a fixed-term contract each lead to different final pay. Here is how each works under Labour Law 14 of 2025.
The short answer
Egypt has no Gulf-style gratuity paid by the employer: pension and end-of-service benefits come from social insurance. What the employer owes depends on how the contract ends: unpaid notice, unused leave, compensation if a court finds the termination had no lawful reason, and a grant on long fixed-term contracts.
Example: EGP 15,000 a month, six years’ service, an open-ended contract ended without a lawful reason and without notice, 10 days of leave left. The minimum is EGP 230,000: three months’ notice pay (EGP 45,000), at least two months per year (EGP 180,000) and leave pay (EGP 5,000).
When the employee resigns
- The employee gives 3 months’ written notice on an open-ended contract; the employer may waive it
- The resignation is authenticated by the labour authority, and can be withdrawn within 10 days of acceptance
- The employer pays the wage to the last day, unused annual leave and any amounts the contract promises
- No compensation is due from the employer
When the employer ends the contract
The employer can end an open-ended contract for a lawful reason, such as the employee’s proven inability to do the job or a genuine economic reason, after 3 months’ notice or pay in place of it. Disciplinary dismissal for serious misconduct goes to the labour court.
If the court finds there was no lawful reason, it awards compensation of at least two months’ wage for each year of service, on top of notice and leave pay.
When a fixed-term contract ends
A fixed-term contract ends on its date without notice. New in 2025: when a contract renewed for more than five years ends, the employee is owed one month’s wage for each year of service.
The final settlement checklist
- Wage up to the last working day, including overtime and allowances
- Unused annual leave at the daily wage (monthly wage ÷ 30)
- Notice pay for any part of the notice not given
- Any bonus, commission or benefit the contract or policy promises
- Minus any loan balance, within the legal limits and with the employee’s agreement
- An experience certificate within 15 days of the request, and the social insurance end-of-service form
Free tools for this
Sources
- EY: Egypt enacts new labor law, effective 1 September 2025
- Matouk Bassiouny: insights into the 2025 Labour Law
- Careerians: 20 key changes in Labour Law 14/2025 (with article numbers)
Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.
Final settlements without the spreadsheet
keyt HR keeps leave balances, loans and the contract on file, so the final settlement is ready the day someone leaves.
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