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Lateness, absence and deductions from pay in Egypt

Deductions are where most payroll disputes start. Here are the limits Labour Law 14 of 2025 sets, and how to write lateness and absence rules people accept.

Updated · 6 min read

The short answer

Not paying for time not worked (unpaid absence) is different from a penalty. A penalty deduction needs a rule in your approved work regulations, an investigation, and stays within the caps: at most 5 days’ basic pay for one violation and 5 days’ pay in a month in total.

Loan repayments are capped at 10% of the wage a month with no interest, and damage deductions at 5 days’ pay a month.

The limits

DeductionLimit
Penalty for one violationUp to 5 days’ basic pay
All penalties in a monthUp to 5 days’ pay
Employer loan repaymentUp to 10% of the wage a month, no interest
Damage or loss caused by the employeeTotal up to 2 months’ wage; up to 5 days’ pay a month; after an investigation
Court-ordered debtsUp to 25% of the wage (50% for maintenance)

Figures from law-firm summaries of Labour Law 14 of 2025. Check your work regulations and the law’s text with your lawyer.

The process for a penalty

  • The violation and its penalty must be in the work regulations approved by the labour office
  • Start the investigation within 7 days of finding out
  • A warning or a deduction of up to one day can follow a verbal investigation; anything more needs a written one
  • Impose the penalty within 30 days of the investigation ending
  • One penalty per violation, recorded in the employee’s file

Fair lateness rules

  • Give a grace period, for example 10 or 15 minutes, and say so in the policy
  • Escalate: a warning first, then a quarter day, then half a day, within the monthly cap
  • Count lateness from the actual clock-in, not from a manager’s note
  • Let employees see their attendance and request corrections before payroll closes
  • Treat permission requests and approved missions as on time

Absence

An unauthorised absence day is simply not paid. A penalty on top needs a rule and an investigation. Repeated absence (more than 20 separate days or 10 in a row in a year) can be treated as resignation, but only after a registered warning letter.

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Sources

Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.

Lateness rules applied the same way for everyone

keyt HR applies your grace period and penalty steps from clock-in data, keeps the monthly cap, and lets employees ask for corrections before payroll.

keyt HR: HR, attendance and payrollSee it working

Questions people ask

Still have a question?

Ask us directly
How much can an employer deduct for lateness in Egypt?

A penalty deduction is capped at 5 days’ basic pay for one violation and 5 days’ pay a month in total, under the approved work regulations.

Can I deduct a loan from salary?

Yes, up to 10% of the wage a month and without interest, under Labour Law 14 of 2025.

Is an unpaid absence a penalty?

No. Not paying for a day not worked is not a penalty. A penalty is an extra deduction, which needs a rule and an investigation.

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