Workers' rights · 5 min read
End of service pay in Egypt: what the law gives in each case, with examples
Egypt's Labour Law has no single gratuity for everyone who leaves. What you get depends on how the job ended: from one month a year on some contracts to at least 2 months a year after unlawful dismissal.
That surprises people who've worked in the Gulf. We read Law 14 of 2025 for this, and we found no article that gives every leaver a bonus (mukafa'at nihayat al-khidma, مكافأة نهاية الخدمة). So if you simply resign from an open-ended job, the law gives you your pay and your unused leave, but no general gratuity under this law. Your contract or your firm's rules can give you more, and they must be honoured if they do (Article 6). Here's what each kind of ending brings, with our own worked examples.
What do I get if I resign?
On an open-ended contract: the money you're owed, within 7 days of asking (Article 108), and pay for your unused annual leave (Article 125). Say you resign on EGP 10,000 a month and you're owed half a month's pay. You get EGP 5,000 plus your leave balance. We found no extra bonus for this case in the law.
What if my employer ends a long fixed term contract?
If a fixed term contract was made or renewed for more than 5 years, and your employer ends it after that time, you get one month's pay for each year of service (Article 154). Example: 7 years at EGP 12,000 is 7 x 12,000, or EGP 84,000.
What if the firm cuts jobs for economic reasons?
You get one month's pay for each of your first 5 years, and one and a half months' pay for each year after that (Article 241). This also applies if your employer changes your terms for those reasons and you decide to leave. Example: 6 years at EGP 10,000 is 5 x 10,000 plus 1.5 x 10,000, or EGP 65,000.
What if I work past 60?
Retirement age can't be set under 60 (Article 171). If you keep working after 60, and you've no pension rights for that time, you get half a month's pay for each of the first 5 years and one month's pay for each year after that, on your last wage (Article 172). Example: 7 years at EGP 10,000 is 5 x 5,000 plus 2 x 10,000, or EGP 45,000.
What if I'm dismissed unlawfully?
Compensation is at least 2 months' pay for each year of service, and you keep your other rights (Article 165). The law's list of unlawful reasons includes union activity, making a complaint, using your leave, colour, sex, marital status, family duties, pregnancy, religion and opinion. Example: 4 years at EGP 9,000 means at least 4 x 2 x 9,000, or EGP 72,000.
This is the floor on compensation for harm, not a sum your employer will simply hand over. Talk to the labour office or a lawyer if you're in this position.
What if my employer gives me no notice?
On an open-ended contract, your employer owes you pay for the 3 month notice period, or whatever's left of it (Article 164). On EGP 10,000, that's EGP 30,000 if you got no notice at all. That time also counts towards your service.
What is the 1% end-of-service account?
This one's separate, and it isn't in the Labour Law. Under the social insurance law, 1% of your insured wage from you and 1% from your employer go into an end-of-service account (Law 148 of 2019, Article 36). It's paid with your insurance rights, through the National Organization for Social Insurance, not by your employer. On a EGP 10,000 insured wage, that's EGP 200 a month going in. We don't state what you'd get out, because that depends on rules we didn't confirm.
What else is paid when a job ends?
- Unused annual leave is paid in cash (Article 125). It's best to keep your own count of your balance.
- If a worker dies in service: 2 months' pay for funeral costs, at least EGP 1,000, plus further grants (Article 169).
- A certificate of your job, within 15 days of asking, and a free certificate of your experience if you ask for one (Article 175).
What should I do before I sign anything?
Work out your own figure with this page, your contract and your last payslip. Ask for the sum in writing, line by line. A paper that gives up your rights is void if you sign it during the job or within 3 months after it ends (Article 6), so you don't lose those rights by being rushed into a release on your last day. Don't rely on that alone, though. Read before you sign, and keep a copy.
Sources and further reading
- Labour Law 14 of 2025, Official Gazette no. 18 (continued), 3 May 2025 (copy on the Egyptian Tax Authority site)
- Labour Law 14 of 2025 on the Ministry of Labour site
- Social Insurance and Pensions Law 148 of 2019 (National Organization for Social Insurance)
- Private sector monthly payroll form 2026 (Egyptian Tax Authority)
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Frequently asked questions
Is there an end of service calculator?
Not here yet. Each case is simple arithmetic, shown above, but we couldn't confirm how end of service pay is taxed. So we'd rather give you the worked examples than a number that looks final. The tax authority's form has lines for taxable and non-taxable end of service pay, so ask your payroll team.
Do I get end of service pay if I resign in Egypt?
We found no general gratuity in Law 14 of 2025 for someone who resigns from an open-ended job. You get the money you're owed and your unused leave. Your contract or firm's rules may give you more, so check them.
Is the sum based on basic pay or full pay?
Article 172 says your last wage. The law's definition of wage covers more than basic pay, including commission, allowances and grants, so ask how your employer works it out. If you disagree, ask the labour office.