Egyptian labor law, tax and insurance

Which disciplinary penalties does Egyptian labor law allow?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

Article 139 of Labor Law No. 14 of 2025 allows only eight disciplinary penalties, from a written warning up to dismissal. They must be set out in the establishment's regulations and preceded by an investigation, and a deduction may not exceed five days' wage for a single violation.

Step by step

  1. 1

    The eight penalties

    A written warning, a deduction from basic wage, deferring the annual raise for up to three months, withholding up to half of it, deferring promotion for up to a year, cutting basic wage by up to one raise, demotion to the grade directly below without a pay cut, and dismissal.

  2. 2

    Investigation first

    Inform the worker in writing of the charge and hear his defense in a record kept in his file, starting within 7 days of discovering the violation and lasting no more than three months, extendable by three more if new facts or documents emerge. It may be oral for a warning or a deduction of up to one day's wage, under Article 141.

  3. 3

    Deduction limits

    A deduction may not exceed five days' wage for one violation, and no more than five days' wage may be deducted for penalties in a month, under Article 143.

  4. 4

    Time limits and rules

    One penalty per violation under Article 140, none imposed more than 30 days after the investigation ends under Article 138, and a heavier penalty is allowed for a repeat within a year under Article 144.

  5. 5

    Who imposes penalties

    Dismissal is for the labor court alone, other penalties are for the employer or his delegate, and the establishment's manager may impose a warning or a deduction of up to three days, under Article 148.

  6. 6

    Register of financial penalties

    Article 153 requires a register of financial penalties and a separate account for the proceeds, spent on the establishment's workers for social, cultural and sports purposes.

A common mistake

Deducting pay without an investigation or a reasoned decision is the most common disciplinary mistake, and breaching Articles 140 to 145 carries a fine of EGP 1,000 to 20,000 under Article 294.

People also search for this question as
  • disciplinary penalties under the new egypt labor law
  • maximum salary deduction as a penalty in egypt