How much end-of-service gratuity (مكافأة نهاية الخدمة) does an Egyptian private-sector employee receive? Under the revised Labor Law 14/2025 (replacing Law 12/2003): half-month wage per year for the first 5 years + full-month wage per year thereafter. Based on LAST total wage (basic + regular allowances). Payable at contract end except for gross-misconduct termination. NOSI (Social Insurance) is separate and continues as monthly pension. Worked examples below.
Built around how MENA teams actually manage this day-to-day.
Half-month wage per year for first 5 years. Full-month wage per year for every year after year 5. Partial years prorated (e.g., 3 years 4 months = 3.33 × 0.5 month = 1.67 months). Same structure as Saudi but calculated on narrower wage base.
Egypt uses LAST total wage — basic salary + regular monthly allowances (transportation, meal, cost-of-living). Irregular bonuses, overtime, and commissions are typically excluded. Broader than UAE (basic only), similar to Saudi.
EoS is payable at contract termination REGARDLESS of who initiates (employer or employee) — with one exception: termination for gross misconduct per Article 110 of Labor Law 14/2025 (physical assault, repeated absenteeism, revealing employer secrets, etc.). No resignation reductions like Saudi.
The 2025 law replaced the older 12/2003. Key changes: remote-work provisions added, gender-equality strengthened, maternity protections expanded (4 months at 75% salary, no dismissal during maternity). EoS formula structure largely unchanged — half/full-month per year.
EoS and NOSI (National Organization for Social Insurance) are completely separate. All Egyptian employees contribute to NOSI monthly for pension/disability/survivor benefits. EoS is paid as lump-sum at termination in ADDITION to NOSI contributions — not instead of.
Unlike UAE (2-year cap), Egypt has no maximum cap on total EoS. Long-service employees (20-30 year careers) can earn substantial lump-sums. Partial-year service is prorated to the day for precision — important for mid-month terminations.
Formula: 3 × 0.5 month = 1.5 months. Gratuity = 1.5 × 6,000 = EGP 9,000. Payable at contract end (any reason except gross misconduct).
Formula: 5 × 0.5 month = 2.5 months. Gratuity = 2.5 × 8,000 = EGP 20,000. Exactly at threshold — all first-5-year rate.
Formula: (5 × 0.5) + (3 × 1) = 2.5 + 3 = 5.5 months. Gratuity = 5.5 × 10,000 = EGP 55,000.
Formula: (5 × 0.5) + (10 × 1) = 2.5 + 10 = 12.5 months. Gratuity = 12.5 × 12,000 = EGP 150,000. No cap — full amount payable.
Formula: (5 × 0.5) + (20 × 1) = 2.5 + 20 = 22.5 months = 1.875 years. Gratuity = 22.5 × 15,000 = EGP 337,500. No cap (unlike UAE which would cap at 360,000 for this wage).
Per Labor Law 14/2025 (replacing 12/2003): half-month total wage per year for first 5 years + full-month total wage per year after year 5. Based on LAST total wage (basic + regular monthly allowances like transport, meal, cost-of-living). Irregular bonuses, overtime, commissions excluded. Partial years prorated to the day. No cap (unlike UAE).
Yes, generally. Egyptian labor law does not apply resignation reductions (unlike Saudi). Resigning + terminated employees get the same calculation. The only scenario where EoS is NOT payable: termination for gross misconduct under Article 110 (physical assault, theft, revealing secrets, repeated absence without justification, etc.) — must be properly documented.
Yes, regular monthly allowances (transportation, meal, cost-of-living, housing if paid monthly) are included in the wage base. Irregular bonuses, overtime, and sales commissions are typically excluded. Broader than UAE (basic only), similar to Saudi but without the housing-allowance emphasis.
EoS and NOSI are completely separate benefits. NOSI (National Organization for Social Insurance) is a monthly pension/disability/survivor benefit system funded by employer + employee contributions throughout working life. EoS is a lump-sum paid at termination based on tenure. Both are payable; neither replaces the other.
Yes. Labor Law 14/2025 EoS formula is pre-configured in AttendUX payroll engine. Tenure calculated from hire date (day-precision for partial years), wage base assembled from basic + regular allowances (irregular items auto-excluded), no cap applied, Article 110 misconduct flag available for HR to invoke when applicable. At termination, EoS auto-computes + appears in exit settlement + flows to final payslip.
This page summarizes key provisions of Egyptian Labor Law No. 14 of 2025 (end-of-service provisions) for general informational purposes only. This is not legal advice. Labor laws are amended periodically; AttendUX makes no warranty about completeness or current validity. For your specific situation — including employment terminations, disputes, cross-border cases, or policy design — consult a labor-law attorney licensed in the relevant jurisdiction and verify with the Egyptian Ministry of Labor.
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