In Egypt, end-of-service pay depends on the type of contract and the reason for departure. The rules are defined under Egyptian Labor Law.

Retirement

1. Gratuity Entitlement

If you work until the legal retirement age (typically 60), you are entitled to a statutory end-of-service gratuity, provided you are not covered by a separate social insurance scheme that handles this payout.

Tenure	Gratuity Entitlement
1 to 5 years	Half a month's wage per year of service
6 years and beyond	One full month's wage per year of service

2. Example

Scenario
An employee retires after 10 years of service with a monthly wage of EGP 10,000.

Years 1 to 5: half a month's wage per year
→ 5 × (10,000 × 0.5) = EGP 25,000
Years 6 to 10: one full month's wage per year
→ 5 × 10,000 = EGP 50,000

Total gratuity: EGP 75,000

Employer Termination Without Cause

1. Severance Entitlement

If your employer terminates an indefinite-term (open-ended) contract without a valid legal justification or serious misconduct on your part, you are entitled to compensation for unfair dismissal.

Contract Type	Minimum Compensation
Indefinite-term	Two months' full wage for every year of service

The labor court sets the final amount and may award more depending on the circumstances.

2. Example

Scenario
An employee on an open-ended contract is terminated without cause after 5 years of service with a monthly wage of EGP 10,000.

Minimum severance: 2 months × 5 years of service
→ 2 × 5 × 10,000 = EGP 100,000

Early Termination of a Fixed-Term Contract

1. Entitlement

If you are on a fixed-term contract and your employer ends it early without a legally valid reason:

Entitlement	Notes
One month's salary per completed year of service	You may also be entitled to the remaining wages for the unexpired portion of the contract, depending on the contract's specific terms

2. Example

Scenario
An employee on a 3-year fixed-term contract is terminated after 2 completed years with a monthly salary of EGP 10,000.

Gratuity: 1 month per completed year of service
→ 2 × 10,000 = EGP 20,000

Employee Resignation

If you resign voluntarily, Egyptian Labor Law does not mandate a statutory severance payout. Your employer is still required to pay your final dues:

Salary up to your last working day
Encashment of any unused, accrued annual leave
Any unpaid bonuses, commissions, or allowances stated in your contract

Exception: If you are forced to resign due to a serious breach of contract by your employer — such as unpaid wages — this may be treated as constructive dismissal. In that case, you can claim the unfair dismissal severance through a labor court.

Death During Service

1. Employer Obligations

If an employee passes away while employed, the employer must pay the deceased's family:

Benefit	Amount
Funeral expenses	A lump sum equal to two months' wages (based on the last wage received), with a legal minimum of EGP 1,000
Death grant	The employee's full wage for the month of death, plus wages for the two following months

What Counts as "Wage"

The baseline used for all end-of-service calculations is the last received gross wage. Under Egyptian law, "wage" includes more than basic salary — it typically covers: