Egyptian labor law, tax and insurance

Is the periodic raise mandatory in Egypt's private sector?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

Yes. Under Article 12 of Labor Law No. 14 of 2025, workers are entitled to a periodic annual raise of at least 3% of the insurable wage. It falls due a year after hiring or after the previous raise, and as of October 2026 the latest National Council for Wages decision, issued in February 2025, sets a floor of EGP 250 a month.

Step by step

  1. 1

    Calculate it on the insurable wage

    The minimum is 3% of the insurable wage, which is the contribution wage under Social Insurance and Pensions Law No. 148 of 2019, not of gross pay.

  2. 2

    When it is due

    One year from the hiring date or from the date the previous raise was due, so record each employee's date in the file.

  3. 3

    Compare with the EGP floor

    Compare 3% of the insurable wage with EGP 250 and apply the higher, under the National Council for Wages decision.

  4. 4

    Economic hardship

    If an establishment cannot pay for economic reasons, it refers the matter to the National Council for Wages, which decides on a reduction or exemption within 30 days. The company cannot decide this itself.

  5. 5

    Appealing the decision

    Any party concerned may challenge the Council's decision on a reduction or exemption request before the labor court within 30 days of the date the raise was due or of notice of the decision, as the case may be, under Article 106.

  6. 6

    Not the old 7%

    The 7% many people remember came from the third issuing article of Law No. 12 of 2003, on basic wage, until the Council issued its decisions, and that law has been repealed.

A common mistake

Delaying or canceling the raise by internal decision because cash is tight is a breach, and the only route is a reduction or exemption request to the Council. Breaching Article 12 carries a fine of EGP 500 to 5,000 multiplied by the number of workers, under Article 288.

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