Egyptian sick leave is funded through social insurance, not employer payroll, and it is paid on a two-tier percentage scale that steps up, not down, as the absence lengthens. An employee certified sick receives 75% of their insured wage for the first stretch and 85% thereafter, for up to 180 days a year — with chronic conditions treated more generously still.
Egypt also overhauled its employment framework with a new Labour Law replacing the long-standing Law No. 12 of 2003. Employers operating in Egypt should verify current provisions against the new law and its executive regulations rather than relying on pre-2025 policy documents.
Key takeaways
- Sick leave compensation is paid under the Social Insurance and Pensions Law (No. 148 of 2019), funded by insurance contributions rather than by the employer directly.
- The standard entitlement is up to 180 days per year of certified sick leave.
- Compensation is 75% of the insured wage for the first 90 days, rising to 85% for the following 90 days.
- Chronic illnesses on the designated list are compensated at 100% until recovery or until incapacity is established.
- An employee may choose to convert accrued annual leave into paid sick leave at full pay.
The 180-day entitlement
An employee whose illness is certified by the competent medical authority is entitled to sick leave of up to 180 days in a year. The days are cumulative across absences in the year rather than per illness.
Certification runs through the medical authority designated by the social insurance body — typically the insurance authority’s own medical services or an approved facility. A certificate from any private doctor does not by itself trigger compensation; it is the designated authority’s determination that does.
Employees must notify the employer of the absence and follow the certification process promptly. The employer’s role is to record the absence, stop salary for the covered days, and provide the insurance authority with the employment and wage data the claim requires.
The compensation tiers
| Period of sick leave in the year | Compensation |
|---|---|
| First 90 days | 75% of the insured wage |
| Following 90 days | 85% of the insured wage |
| Chronic illness (designated list) | 100%, until recovery or established incapacity |
The rising scale is unusual — most systems step payments down over time. Egypt’s design reflects the assumption that a long absence is more likely to be a serious condition, and the chronic illness carve-out completes the logic.
The percentages apply to the insured wage — the earnings on which social insurance contributions were paid. Where an employer registers employees at less than their actual pay, the employee’s sick leave, maternity, and pension entitlements are all reduced proportionately, and the practice attracts enforcement and back-contribution assessments.
Chronic and serious illness
Illnesses on the designated chronic and serious illness list — which includes conditions such as tuberculosis, mental illness, cancer, and cardiac and hepatic conditions — are compensated at 100% of the insured wage, and the compensation continues until the employee recovers or until incapacity is formally established.
That means the 180-day cap does not operate in the ordinary way for these conditions. Employers with a long-term absent employee should establish early whether the condition is on the list, since it materially changes both the employee’s income and the timeline for any capability decision.
Converting annual leave
Egyptian employees may elect to take their accrued annual leave in place of sick leave, receiving full pay for those days instead of the 75% or 85% insurance compensation.
Most employees with meaningful accrued leave choose this for short absences, because the pay difference is significant. Employers should not force the substitution — the choice belongs to the employee — but should make it clear that the option exists, and should track annual leave balances accurately so employees can make an informed decision.
Work injury
Injury or disease arising from work is handled under the work injury branch of the social insurance system rather than as ordinary sick leave. It is compensated at a higher rate — full insured wage — from the first day, with no waiting period, together with medical treatment and permanent disability assessment where applicable.
Employers must report work accidents to the social insurance authority within the prescribed period. Routing an occupational injury through the ordinary sick leave process reduces the employee’s compensation and draws down an allowance that should remain intact.
Termination and long absence
Egyptian labour law protects employees against termination during certified sick leave. An employer generally cannot terminate for absence while the employee remains within their sick leave entitlement and the absence is properly certified.
Where the illness results in established permanent incapacity to perform the work, the employment may be ended under the statutory route, with the employee’s end-of-service and social insurance entitlements crystallising. That is a formal determination by the medical authority, not a conclusion the employer reaches on its own.
Employers should also note that a termination without valid cause in Egypt is dealt with by the labour court and can attract substantial compensation. Absence alone, within entitlement, is not a valid cause.
Employer obligations
Egyptian employers have six core duties:
- Register employees for social insurance at their correct actual wage, since all compensation derives from it.
- Record certified sick leave and provide the insurance authority with the data its claim process requires.
- Allow the employee to elect annual leave in place of sick leave at full pay.
- Report work injuries to the social insurance authority so the higher work-injury rate applies.
- Not terminate for certified absence within the employee’s entitlement.
- Follow the medical authority’s determination where permanent incapacity is asserted.
Common pitfalls
1. Under-registering the insured wage
It reduces every benefit the employee receives and exposes the employer to back-contribution assessments and penalties. This is the most consequential Egyptian social insurance error.
2. Stepping compensation down instead of up
The rate rises from 75% to 85% after 90 days. Employers accustomed to declining scales elsewhere frequently get this backwards.
3. Missing the chronic illness list
Designated chronic conditions attract 100% compensation and are not constrained by the ordinary 180-day logic. Treating them as standard sick leave underpays significantly.
4. Forcing annual leave substitution
The election belongs to the employee. Requiring them to exhaust annual leave before taking sick leave removes a choice the law gives them.
5. Relying on pre-2025 policy documents
Egypt’s employment framework was overhauled by the new Labour Law replacing Law No. 12 of 2003. Handbooks and contracts drafted under the old law need reviewing against the current provisions and executive regulations.
For more Egyptian context, see our guide to annual leave entitlement in Egypt, the overview of the main types of leave employers manage, and our guide to absence management.
Frequently asked questions
How many sick days do Egyptian employees get?
Up to 180 days of certified sick leave per year, compensated through social insurance. Designated chronic illnesses are treated separately and more generously.
How much is Egyptian sick pay?
75% of the insured wage for the first 90 days, rising to 85% for the following 90 days. Chronic illnesses on the designated list are compensated at 100%.
Who pays sick leave in Egypt?
The social insurance system, funded by employer and employee contributions, rather than the employer’s payroll directly.
Can an employee take annual leave instead?
Yes. Employees may elect to use accrued annual leave for a period of illness and receive full pay instead of the insurance percentage. The choice is the employee’s.
Are work injuries treated differently?
Yes. Work injury is compensated at the full insured wage from day one under the work injury branch, with no waiting period and separate medical coverage.
Can an employee be dismissed while on sick leave?
Not for certified absence within their entitlement. Termination on incapacity grounds requires a formal determination of permanent incapacity by the competent medical authority.
Putting it into practice
Five checks cover most Egyptian sick leave risk:
- Audit registered insured wages against actual remuneration across the workforce.
- Configure the 75%/85% step at 90 days, and flag chronic-list conditions for 100% treatment.
- Present the annual-leave election to employees at the point sick leave is recorded, with their balance visible.
- Create a separate work injury absence type routed to the social insurance authority.
- Review handbooks and contracts against the current Labour Law rather than the 2003 framework.
A leave management system that tracks cumulative sick days against the annual limit, applies the rate step at day 90, and shows employees their annual leave balance at the moment they choose between the two makes Egypt’s insurance-funded model transparent for both HR and staff.
Sources
- National Organization for Social Insurance (NOSI) — Egypt (primary source)
- Social Insurance and Pensions Law No. 148 of 2019
- Ministry of Labour — Egypt
Last updated: 26 July 2026. This article is general guidance, not legal advice. Egypt’s Labour Law framework was recently replaced and executive regulations continue to be issued — confirm current provisions with an Egyptian employment lawyer before relying on any figure here.