This report provides aggregate results from compliance assessments conducted by Better Work Egypt in 57 factories in 2025, alongside insights gathered through advisory visits and factory-level engagement.
The report also demonstrates how data and intelligence generated through the programme support broader sector-wide action, including efforts to strengthen labour standards and inform policy and reform discussions. The findings and analysis presented in this report are intended to provide a basis for reflection among stakeholders and to contribute to strategic discussions as the programme continues to support decent work in the garment sector in Egypt.
Egypt’s labour market and industrial landscape in 2025 were shaped by economic adjustment, regulatory reform, and sustained export-driven growth in key manufacturing sectors. Against a backdrop of inflationary pressures and rising production costs, the Government of Egypt introduced policy measures aimed at strengthening worker protection and improving employment conditions, including updates to wage regulations and labour legislation. At the same time, export-oriented industries continued to play a strategic role in supporting foreign currency inflows and employment generation.
The ready-made garment (RMG) sector, in particular, remained a key pillar of Egypt’s industrial base and export economy, demonstrating strong resilience and growth despite ongoing global economic uncertainty. Garment exports reached approximately USD 3.4 billion in 2025 — a 22 per cent increase compared to 2024 — marking the highest level recorded by the industry and underscoring the sector’s importance as a major source of foreign currency and employment.
Global supply chain reconfiguration remained a defining trend in 2025, as international apparel brands continued to diversify sourcing locations in response to geopolitical tensions, rising production costs in parts of Asia, and the need for shorter and more resilient supply chains. Egypt’s geographic proximity to European markets, preferential trade agreements, and improving compliance landscape continued to position the country as a strategic alternative sourcing destination. As a result, several global buyers maintained or expanded their engagement with Egyptian suppliers.
In parallel, Egypt enacted a new Labour Law in 2025 (Labour Law No. 14 of 2025), replacing the previous labour framework and aiming to modernize employment relations and regulation in line with evolving labour market dynamics. Key provisions of the law, which came into force in September 2025, include expanded protections against discrimination and workplace harassment, the formal recognition of part-time and remote work, the extension of maternity leave to 120 days, and the introduction of paternity leave. The law also simplifies contractual requirements, reduces the training levy on employers, and establishes specialized labour courts to expedite dispute resolution. These reforms aim to align Egypt’s labour market with international standards, improve working conditions, and enhance investor confidence, especially in labour-intensive sectors such as garment manufacturing.