The New Social Insurance Law

Written By - Hatem Ahmed Sayed, Senior Associate
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The Social Insurance Law No. 79 of 1975 (the “Law”) was recently amended by Law No. 148 for 2019 (the “Amendment”). The Amendment was published in the Egyptian Official Gazette on August 19th, 2019 and will be in full force and effect on January 1st, 2020. The Executive Regulations of the Law in hand shall be issued within a term of six months as from the date of enactment of the law.

This Law introduced new categories of workers in order to be more specific and to include the majority of Egyptian workers within the protection of this law, which accordingly shall ensure Egyptian workers’ rights and benefits. As such, the provisions of this law shall be applicable to workers of the following categories:

First: Workers from different work sectors:

– The civil workers of the administrative system of the state, public authorities, general organizations, and economic units subordinate to any of such departments.

-Workers of public sector units, the public work sector, and other economic units subordinate to any of such departments, including the board of directors’ members in public work sector companies.

-Workers of the private sector subject to the provisions of the labor law provided that, such work relation has to be a regular one. Shall be excepted from this requirement, workers-working in the contracting field, as well as loading and unloading workers, etc.

-Those engaged in work connected with household services except for those working inside private houses.

-Family business which includes family members of the employer working for him.

The Executive Regulations of the present law shall determine the rules and provisions which shall regulate the application of the above.

Second: Business owners (Private Business) and the like:

– Individuals who run private business activities, including but not limited to, craftsmen, jointly liable partners, self-employed persons, land and real estate owners and commercial agents, etc.

Provided that they obtain the special licenses required for the performance of such activities subject to special rules and regulations. Upon the decision of the Chairperson of the Social Insurance, more categories may be added by a ministerial decree issued in this regard.

Third: Egyptians employed outside Egypt

According to terms and conditions stated in their employment contract or their private business.

Fourth: Irregular employment

Such as real estate owners whom their annual income is less than the minimum wage of social insurance subscription, migrant laborers, household servants, small workers working for their own such as itinerant workers, etc.


The New Social Insurance and Pension Law is a merge with the Old Social Insurance Law constituting one Law giving more advantages to workers of different categories.

As for the first time the Law provides unemployment allowance financed by the share committed by the employer at the percentage of 1% from the insured monthly wages, in addition to the insurance investment income.

This Law stipulates the increment of pensions in case of workers’ injuries, who are not receiving wages like Industrial apprentices, from 10 EGP to the minimum pension value.

Such Law further contributes to resolving financial conflicts between the National Organization for Social Insurance, the General Treasury of State and the National Investment Bank.

The New Social Insurance and Pension Law allocates insurance incentives for irregular employment and establishes a special fund for all insured categories.

Also, one of the advantages of the New Social Insurance & Pension Law is the gradual increase of the minimum limit of pension and wages to be equivalent to the minimum limit of pension on a regular basis.

Finally, according to this Law, the pension age shall gradually increase as of year 2032, to reach the age of 65 years by year 2040.