Five Egyptian labour-law gotchas that are still costing payroll teams in 2026

Egyptian labour law was significantly updated in 2023 (Law 14 of 2023). Most enterprises have absorbed the headline changes — minimum wage, mandatory written contracts, end-of-service calculations — but a few quieter provisions are still tripping up payroll teams two years on.

The five issues we see most often

1. Contract renewal notification windows

The 60-day prior notification before non-renewal is now strictly enforced. Auto-renewal happens by operation of law if the deadline is missed. We routinely see clients lose flexibility on roles they intended to phase out simply because the calendar slipped.

2. Probation periods are capped at three months

Older contracts using six-month probation are unenforceable for the additional three months. The contract itself remains valid, but the probationary protections lapse. Refresh every contract template signed before 2024.

3. Year-end tax form (Form 6) format change

The new electronic submission format requires a digital signature from a Form 4 authorised signatory. Many companies are still relying on a physical stamp — submissions are being rejected silently and only surface during the tax authority audit.

4. Social insurance ceiling adjustment

The ceiling adjusted again in January. Payroll systems that were not updated are under-deducting employee contributions. The variance is small per employee per month but accumulates fast — and the back-charge is on the employer.

5. End-of-service calculation for fixed-term contracts

Fixed-term contracts that complete now require end-of-service entitlements at 30 days per year served — not the 15 days many older contracts referenced. If your contracts pre-date this, plan for the additional accrual.

What to do

• Audit any contract template signed before March 2024.
• Reconcile your payroll system against the latest social insurance ceiling.
• Verify your Form 6 submission has gone through electronically — not just printed and stamped.

If you would like a compliance read on your current setup, our outsourcing team can run a 30-minute audit. Reach us at info@infinitybs-eg.com.