Egypt
Remote work implementation
Impact date: 1 June 2026 The Decrees nos. 1572, 2033, and 2377 of 2026 (the “Decrees”) extend the application of Prime Minister Decree No. 982 of 2026 that was issued in April 2026 for the months of June, July and August 2026.
The Decrees require specified establishments and entities to implement remote work one day per week, every Sunday, provided that this does not affect business operations. The requirement applies mainly to sectors such as ICT, financial and accounting services, marketing and media, real estate services, remote training, non-service NGOs, and trade union/employer association offices. It also applies to administrative and office-based functions in other sectors where remote work does not affect operations.
Certain sectors are excluded and may operate according to business needs, including service, healthcare, transportation, infrastructure, industrial and production, and private education sectors.
The Decrees confirm that remote work implementation must not prejudice employees’ rights, including wages, benefits, systems or existing contractual and statutory entitlements.
Employer implications/action needed Employers are required to implement remote working arrangements for employees on Sunday.
Employer risk The Decrees do not provide for any specific penalties or sanctions for non-compliance. However, employers should ensure compliance with the remote working requirement.
Link N/A
Universal Health Insurance
Impact date: 3 August 2026 The Universal Health Insurance Law no. 155 of 2026 amends certain provisions of the Universal Health Insurance Law No. 2 of 2018. It reclassifies the solidarity contribution provided for under Article 40 as taxable revenue and assigns the Egyptian Tax Authority responsibility for assessing, determining, and collecting the contribution from entities subject to it. The contribution is to be collected by the deadline for filing the income tax return. The contributions collected shall be transferred to the State Treasury. The Law also removes the previous provision stating that the contribution is not deductible for income tax purposes and that its collection would be governed by the Executive Regulations.
Employer implications/action needed
- employers/entities subject to solidarity contribution should treat the contribution as taxable revenue in accordance with the amended provisions
- the Egyptian Tax Authority will be responsible for examining, assessing, and collecting the contribution
- employers should ensure that the contribution is included in the relevant income tax filing/payment process by the applicable income tax return deadline
- employers should review their tax and payroll/accounting procedures to reflect the removal of the previous non-deductibility wording
Employer risk Failure to pay the solidarity contribution may result in the Universal Health Insurance Authority (UHIA) seeking recovery of the outstanding amounts, together with applicable statutory interest. UHIA may also impose a fine ranging from EGP 20,000 to EGP 50,000. UHIA may also take enforcement measures, including administrative seizure, to recover the outstanding amounts and accrued statutory interest.
Link N/A
Casual Labour Fund Contributions
Impact date: 6 August 2026 The Minister of Labor Decree no. 2403 of 2026 relates to the Emergency Aid Fund and Social and Health Services Fund for Casual Labor. The Decree sets out the Emergency Aid and Social and Health Services Fund’s revenues for Casual Labor, including contributions ranging from 1% to 3% of the actual salary of the casual workers in the construction and mining/quarrying sectors, subject to the prescribed rules where actual wages cannot be determined. It also provides for monthly registration contributions for other categories of casual labor, as well as certain fees and percentages related to agricultural products, agricultural land contracts and professional driving licenses.
The Decree further regulates the composition and functions of the Fund's Board of Directors, the appointment and responsibilities of the Secretary-General, staffing, banking arrangements, investment of surplus funds, annual budgets and financial statements, external auditing and oversight by the Central Auditing Organization. The Decree considered that the Fund's assets are considered public funds.
Employer implications/action needed Employers operating in the construction/building and mining/quarrying sectors should assess their obligations to contribute to the Fund in respect of irregular workers and ensure that any applicable contributions are calculated and paid in accordance with the prescribed rates.
Employer risk Failure to comply with the applicable contributions to the Fund may subject the employer to a fine ranging between EGP 1,000 and EGP 10,000, which shall be doubled in case of recurrence.
Link N/A
Minister of Labor Decree no. 162 of 2026 on new internal work regulations
Impact date: 14 August 2026 The Decree provides guidance on the content, preparation, approval, implementation and amendment of the new internal work regulations governing employees’ rights and obligations, employment conditions and workplace procedures in accordance with the Labor Law.
The Decree establishes the mandatory framework and minimum content that employers must include in their internal work regulations. The regulations must address, among other matters, recruitment and employment procedures, employment contracts and employee files, working hours and leave, wages and benefits, training, job classification, performance evaluation, occupational health and safety, employee complaints, disciplinary procedures and termination of employment.
The Decree also sets out procedures for submitting the regulations to the competent labor authority for ratification, including consultation with the competent trade union organization where applicable. It provides mechanisms for reviewing objections and completing the ratification process.
The regulations must comply with the Labor Law and may not provide employees with less favorable terms than their statutory rights. The Decree further requires employers to protect employees from discrimination, harassment and workplace violence and to maintain appropriate procedures for employee complaints and internal communication.
The Decree covers detailed requirements relating to employment and recruitment, employee records, training and development, job classification, performance evaluation (KPI), promotion and transfer, salaries, working hours, rest periods, leave, occupational health and safety, internal complaints and disciplinary procedures.
It also regulates disciplinary sanctions and their implementation, including the requirement that disciplinary measures comply with the Labor Law and that employees be given the relevant procedural protections.
Finally, employers are required to periodically review and update their internal regulations and policies, and any amendments must be submitted through the prescribed approval process.
Employer implications/action needed
- review and update internal work regulations to ensure they contain all mandatory provisions under the Decree
- ensure the regulations comply with the 2025 Labor Law and do not reduce employees’ statutory rights
- submit the regulations for ratification by the competent labor authority, following the required consultation process
- ensure employee contracts, files, working hours, leave, wages, training, disciplinary procedures and termination procedures are consistent with the approved regulations
- establish/maintain procedures for complaints, grievances, workplace safety and internal communication
- periodically review and update the regulations and obtain approval for amendments where required
Employer risk Failure to prepare, ratify, implement or update the Work Regulations in accordance with the Decree and the Labor Law may expose the employer to a fine ranging between EGP 2,000 and EGP 10,000, which shall be doubled in case of recurrence.
Link N/A
Contact
Omar S. Bassiouny Founding Partner & Head of Corporate M&A
E: omar.bassiouny@matoukbassiouny.com T: +202 2796 2042 (ext.129)
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
Connect with us
