Egypt Severance Pay Calculator 2025
Calculate end-of-service benefits and severance costs accurately according to Egyptian Labor Law. Free calculator for HR professionals, hiring managers, and employees in Egypt.
Calculate Egypt Severance Pay in Seconds
Our free Egypt severance calculator helps you accurately estimate end-of-service gratuity based on current Egyptian labor legislation. Whether you're calculating for various compensation structures, get instant, compliant results.
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100% compliant with Egyptian Labor Law
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Supports fixed-term and indefinite employment contracts
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Handles resignation, termination, and downsizing scenarios
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Instant, accurate severance pay calculations
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Free to use for all HR professionals in Egypt
Why Choose Our Egypt Severance Pay Calculator
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New Administrative Capital Compliant
Stay aligned with Egypt's modernization initiatives and ensure compliance with evolving Egyptian employment practices in the new economic landscape.
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Collective Labor Expertise
Navigate complex collective labor relationships and union negotiations with accurate severance calculations for industrial and service sectors.
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Penalty Prevention System
Avoid costly Egyptian labor law penalties with calculations that ensure full compliance with termination and severance regulations.
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Vacation Policy Integration
Factor in Egyptian vacation entitlements and leave accumulation for comprehensive severance calculations including unused time off.
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Downsizing Support
Handle economic downsizing procedures with specialized calculations for mass layoffs and restructuring initiatives under Egyptian law.
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Women's Employment Focus
Ensure compliance with women's employment protections and maternity-related severance considerations under Egyptian labor legislation.
Egypt End of Service Benefits: Complete Reference Guide 2025
Egypt Severance Pay Rates by Contract Type
Contract Type in Egypt
Severance Pay Rate
Example (EGP 15,000 monthly salary)
Indefinite Contract
1 month salary per year
EGP 15,000 per year of service
Fixed-Term Contract
Varies by termination reason
Contract-specific calculation
Indefinite vs Fixed-Term Employment Severance in Egypt
Egypt Indefinite Contract Severance
- Employee Resignation: Limited severance after 2+ years
- Employer Termination: Full severance compensation
- Economic Downsizing: Enhanced severance package
Egypt Fixed-Term Contract Severance
- Early Termination: Compensation for remaining period
- Contract Completion: End-of-service benefits
- Renewal Terms: Accumulated service benefits
How to Calculate Egypt Severance Pay: 5-Step Guide
1
Identify Egyptian Employment Contract Type
Determine if the employee has an indefinite or fixed-term employment contract in Egypt, as this fundamentally affects severance calculation methods and entitlements.
2
Calculate Total Service Period in Egypt
Count complete years and months of service, including any approved leave periods and accumulated vacation time under Egyptian labor regulations.
3
Classify Termination Type
Determine if it's voluntary resignation, employer termination, economic downsizing, mutual agreement, or natural contract expiration under Egyptian law.
4
Apply Egyptian Severance Formula
Use Egyptian wage calculation standards: typically one month's salary per year of service for indefinite contracts, with variations for different termination types.
5
Calculate Final Egypt Severance Amount
Sum up severance pay, vacation encashment, and any applicable bonuses. Ensure compliance with Egyptian penalty avoidance through proper documentation and payment procedures.
Egypt Severance Pay FAQ: Most Asked Questions 2025
How is severance pay calculated for indefinite contracts in Egypt?
Egypt typically provides one month's salary for each year of service for indefinite contracts when terminated by the employer. The calculation includes basic salary plus regular allowances, with minimum and maximum limits as specified under Egyptian labor law provisions.
Do Egyptian employees get severance pay for voluntary resignation?
Employees with indefinite contracts who resign after completing 2+ years of service may receive limited severance benefits. However, the amount is typically reduced compared to employer-initiated termination, encouraging workforce stability in the Egyptian market.
How do collective labor agreements affect severance in Egypt?
Egypt's strong collective labor relationship framework often provides enhanced severance benefits beyond statutory minimums. Union agreements may include additional compensation, extended notice periods, and specialized protections for different industries.
What happens during economic downsizing in Egypt?
Egyptian downsizing procedures require enhanced severance payments, often 1.5-2 times the standard rate, plus additional support for affected workers. Companies must follow strict notification procedures and may need government approval for large-scale layoffs.
Are vacation days included in Egyptian severance calculations?
Yes, accumulated vacation time must be paid out during termination. Egypt's comprehensive vacation policy includes annual leave, sick leave, and special leave entitlements that must be calculated at current salary rates as part of the final settlement.
What penalties do Egyptian employers face for severance violations?
Egypt enforces strict penalties for labor law violations, including incorrect severance payments. Violations can result in substantial fines, business license suspension, and potential criminal charges for serious breaches of employment termination regulations.
