Egypt Labour Law 14 of 2025 - read from the payroll desk
A working summary of Egypt’s Labour Law 14 of 2025 for HR and payroll: contracts, working hours, overtime rates, leave, penalty caps and end of service.
What changed, and what it means for a payroll run
Labour Law 14 of 2025 replaced Law 12 of 2003 as the framework governing private-sector employment in Egypt. Below is the practical reading - what an HR or payroll department has to change in the way the month is calculated. It is a working summary, not legal advice; the binding text is the law itself.
| Area | What the payroll department has to handle |
|---|---|
| Contracts | Fixed-term and open-ended contracts carry different end-of-service treatment. The contract type has to sit on the employee record, not in a folder, because the settlement calculation reads it. |
| Working hours and rest | Daily and weekly limits, the rest day, and how a shift that crosses midnight is attributed to a day - which decides whether an hour is ordinary or overtime. |
| Overtime | Different rates for day, night and rest-day hours. If the attendance engine does not classify the hour correctly, the rate is applied to the wrong base. |
| Leave | Annual entitlement by service length, sick leave, and the rules for carrying balance forward or paying it out. |
| Penalties | The law caps what can be deducted as a penalty and over what period. A system that lets an administrator exceed the cap creates a liability, not a saving. |
| End of service | The settlement base, the service-year calculation and the treatment of the notice period. |
Why this belongs in the engine, not in a policy document
Every one of those rules is arithmetic that runs a thousand times a month. When it lives in a policy document, somebody applies it by hand and the error surfaces after disbursement. When it lives in the calculation engine, the run either matches the law or it fails visibly. That is the difference between compliance as a service and compliance as a feature.
How LoginHR applies it
- The statutory rules are updated in the engine before the payroll cycle that needs them.
- Every calculated amount is traceable to the rule that produced it - an auditor can follow one employee’s figure back to its source.
- Attendance classification (ordinary, overtime, night, rest day) happens once and payroll reads it, so the rate is never applied to a misclassified hour.
