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.
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
| Deduction | Limit |
|---|---|
| Penalty for one violation | Up to 5 days’ basic pay |
| All penalties in a month | Up to 5 days’ pay |
| Employer loan repayment | Up to 10% of the wage a month, no interest |
| Damage or loss caused by the employee | Total up to 2 months’ wage; up to 5 days’ pay a month; after an investigation |
| Court-ordered debts | Up 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.
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)
- Sadany & Khalifa: wage deductions under Labour Law 14 of 2025
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.
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