The Islamic new year will fall on Saturday, Egypt's Dar Al-Ifta said on Friday, making the day an official holiday.
Earlier this week, the manpower ministry said that employees in the private sector would have the first day of the Islamic Hijri year off.
Employees who work during the official holiday will receive double pay, the ministry said.
With the Hijri lunar calendar being 11-12 days shorter than the Western calendar, the new year Muharram holiday falls on a different date every year.
The Hijri calendar, which began in AD 622, is used by Muslims around the globe.