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Egyptian Labor

Around 96% of the 73 million Egyptians live in the Nile Valley and Delta, with 16 million residing in Cairo and 6 million in Alexandria. Approximately one-third of the workforce is employed in agriculture. An estimated 47% of Egypt's economic and social establishments are in the Cairo and Alexandria governorates, which host 25% of the labor force.

The number of non-Egyptian employees in any establishment must not exceed 10 percent of the total work force for unskilled or semiskilled workers. For skilled workers the limit of Egyptian labor is 25 percent. Also total compensation of foreign employees must not exceed 35 percent of the total payroll of the establishment.

The Egyptian labor market is regulated by the new unified Labor Law No. 12 for 2003. The new Law comprises 257 articles that address all the legal aspects regulating the Egyptian labor market. The new law aims at increasing the private sector involvement and at the same time achieving a balance between employees' and employers' rights. Amongst the most important issues that the new law addresses is the right of an employer to fire an employee and the conditions pertaining to this as well as granting employees the right to carry out a peaceful strike according to controls and procedures prescribed in the new law.

The American Chamber Of Commerce In Egypt Inc.
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Tel: +1 (703) 760-7888