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How is Pro-Rated Compensation Calculated in Egypt?

Learn how pro-rated compensation is calculated in Egypt using the standard 30-day month formula, and when it applies.

Written by Sameer B.

Pro-rated compensation in Egypt is calculated by dividing the monthly salary by 30 and multiplying by the number of days owed. This 30-day standard applies to partial months of work, unused leave payouts, and termination-related payments.

Formula: Pro-rated pay = (Monthly salary ÷ 30) × number of days worked or owed


When Pro-Ration Applies

Scenario

Basis

Calculation

Mid-month hire

Days worked

(Monthly salary ÷ 30) × days worked

Mid-month resignation

Days worked

(Monthly salary ÷ 30) × days worked

Unused annual leave payout

Leave days owed

(Monthly salary ÷ 30) × unused leave days

Partial notice period

Days of notice served

(Monthly salary ÷ 30) × days served

Example: Monthly salary EGP 15,000; employee worked 10 days in a partial month → EGP 15,000 ÷ 30 × 10 = EGP 5,000.


Why the 30-Day Standard

Egyptian labor regulations treat the month as a fixed 30-day unit, regardless of actual calendar days. This applies consistently across:

  • Leave entitlements (21–30 days depending on tenure)

  • Social insurance wage calculations

  • Notice periods (defined in months under Labor Law No. 14 of 2025)

Any partial fulfillment of a notice period or partial month of work uses this same daily rate.

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