In an order issued by outgoing interim President Adly Mansour, the punishment for sexual harassment now is up to five years in jail, the BBC reported.
Longer sentences can also be issued for offenders who hold a position of power over their victims such being armed with a weapon or a senior person at work.
Offenders who repeat the act would face double terms.
Beside the jail term, the offenders would also be fined up to 5,000 Egyptian pounds ($714).
Egypt until now did not have any law against sexual harassment.
According to the UN, nine out of 10 Egyptian women experience some form of sexual harassment during her lifetime, ranging from minor assaults to rape.