<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

Hiring in Egypt

Hiring employees compliantly in Egypt means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Egypt so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Egypt; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Egypt? Contact us about our International EOR Service

Labor Laws in Egypt

Employee Probation Period

  • Employees in Egypt are typically hired with an initial probationary period.
  • The length of the probation period is fixed by contract and, by law, cannot exceed three months.

Annual Leave in Egypt

  • According to the Labor Law in Egypt, the duration of the employees' annual leave is 21 days per year provided they have worked one year for the employer.
  • For employees who have worked for more than 10 years, serving at least one or more employers, the annual leave is 30 days.
New call-to-action

Holidays in Egypt

Orthodox Christmas Day 7th January
January 25 Revolution Day 25th January
National Police Day 25th January
Sham Ennessim  
Sinai Liberation Day 25th April
Labor Day 1st May
Eid al-Fitr  
Uprising in Egypt 30th June
Revolution Day 23rd July
Eid al-Adha  
Islamic New Year  
Armed Forces Day 6th October
Prophet's Birthday  

 

Onboard employees in days, anywhere in the world

Maternity Leave Egypt

  • Female employees are generally entitled to 90 days of paid maternity leave.
  • This is predicated upon serving at her current job for a minimum of 10 months
  • Under most contracts, women are only eligible for maternity leave twice within 5 years.

Paternity Leave Egypt

  • Labor Law does not provide provisions for paternity leave.

Sick Leave in Egypt

  • An employee with proven record of sickness is entitled to a paid sick leave at the rate of 75% of his/her salary upon which social insurance payments are calculated; for a period of 90 days, to be increased to 85% for the following 90 days.
  • Sick leaves are payable up to 180 days.

Working Hours in Egypt

  • A full work week is generally considered five 8-hour work days in Egypt, from Sunday through Thursday (to a maximum of six full days, which would generally add Saturday as the sixth).

Overtime in Egypt

  • Article 85 of the Labor Law stipulates that working overtime must be with the explicit agreement of the employer while the total working hours during a day must not exceed 10 hours.
  • This usually means that the employee is only entitled to two hours of overtime pay.
  • The minimum premiums are set at 35% of the normal pay for overtime work during daylight and 70% for work at nighttime; 100% for work performed on days off and holidays.

Termination of Employment in Egypt

  • In case of termination of a definite period employment contract by the employer at any time within its term, without a justified cause, the employer shall be liable to cover full wage which the employee would have been entitled to throughout the entire period of the contract.
  • Applicable notice period shall be as agreed upon in the definite period employment contract.
  • A two months' notice period shall be sent to the employee if his/her service with the employer has been less than 10 years; a three months' notice period shall be sent in case the employee's service with the employer has been more than 10 years.
  • Employer is not entitled to terminate employment contract unless employee breaches the contract by committing a "grave fault" (Article 69, Labor Law).
  • "Grave fault" constitutes the following:
    • Assumption of false identity or submission of forged documents;
    • Continuous violation of safety instructions;
    • Absence from work for more than 20 non-consecutive or 10 consecutive days in a given one year;
    • Disclosure of the employer's secrets causing material loss;
    • Competition with the employer in the same line of work;
    • Intoxicated state during working hours;
    • Assault of the employer, general manager or any of the superiors;
    • Professional incompetence
  • In case an employee is unfairly dismissed, he/she is eligible for claim of compensation.
  • Such compensation is decided and identified by the competent court but must not be less than two months' full wages for each year of service; in case of a definite term agreement, the salary for the remainder of the contract period.

Notice Period in Egypt

  • A two months' notice period shall be sent to the employee if his/her service with the employer has been less than 10 years
  • A three months' notice period shall be sent in case the employee's service with the employer has been more than 10 years.

Severance in Egypt

  • With regards to terminations for economic reasons, the severance allowance must be equal to one month's wage for each of the first five years of service, and one-and-a-half months for each subsequent year
  • In case of termination of an indefinite period employment contract by the employer without a justified cause, the employer shall be liable to compensation of the employee: no less than two months' full salary for each year of service in addition to entitlements such as accrued leaves, bonuses etc.

Egypt Salary and Wages

Start your Global Expansion

13th / 14th Month Salary in Egypt

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • Although certain employers do pay a bonus.
New call-to-action

Income Tax in Egypt

  • Income tax is imposed on the following sources of income:
  • Worldwide income from employment or dependent services paid by the Egyptian government or any Egyptian public organization, regardless of the employee’s residence, the place where services are rendered or the place of payment
  • Egyptian-source income paid by Egyptian or foreign companies or by private sector enterprises to any employee resident in Egypt or resident abroad, in return for services rendered in Egypt (pension payments are excluded)
  • Non-Egyptian-source income paid to a resident employee or individual if Egypt is the location of the headquarters of the individual’s commercial, industrial or professional activity
  • Under the law, persons are deemed to be residents of the country where they have a permanent domicile.
  • A person who resides in Egypt for a period exceeding 183 days during a calendar year is deemed to be resident in Egypt for tax purposes.
  • Nonresident individuals and expatriate experts (as defined) are generally taxed on Egyptian-source income only.

Earned Income (EGP)

Tax Rate (%)
0 to 15,000 0
15,000 to 30,000 2.5
30,000 to 45,000 10
45,000 to 60,000 15
60,000 to 200,000 20
200,000 to 400,000 22.5
Over 400,000 25
Tap the world's talent pool

Social Security in Egypt

  • Social insurance contributions are levied only on Egyptian nationals with full-time employment.
  • The social security regime applies only to Egyptian nationals, unless a social security agreement with another country applies.
  • According to the new unified social insurance and pension law, the applicable contribution rate is 29.75%, with 11% as the employee share and 18.75% as the employer share.
  • Certain allowances, including those payable for transportation, travel, meals, and accommodation, may be excluded from the salary cap, provided the total allowances do not exceed 25% of the contribution salary.
Social Security Contributions
Employer Group 1083 18.75%
Employee Group 1083 11%

Immigration Egypt

  • If a foreign visitor wants to work in Egypt on a full-time basis, under Egyptian labor law, he or she needs to obtain a work permit.
  • Work permits are granted to expatriates by the Ministry of Manpower and Immigration on an individual basis.
  • A work permit is granted for one year.
  • The work permit may be renewed annually up to a maximum of five years unless exceptional approval is received from the Ministry of Manpower and Immigration.
  • The renewal of the work permit usually takes from 10 to 15 working days, depending on the employee’s nationality
  • The following criteria are considered for applicants who will work on full-time basis:
    • The applicant should have a legal entity in Egypt through which the applicant applies for enrollment.
    • The applicant’s position should add value to the Egyptian legal entity (that is, he or she should be an expert in his or her area of specification, because ordinary positions, such as administrative positions, are not acceptable for enrollment).
    • The applicant should have at least three years of relevant experience in the same position that he or she will be holding in the Egyptian legal entity.
    • The Egyptian legal entity should comply with the labor ratio of 9:1 (that is, nine Egyptian full-time employed and socially insured employees for each expatriate employee).

Residence Visas

  • Ordinary visas are issued for a period of five years to foreign nationals who are married to Egyptians or who were born in Egypt or Palestine.
  • Special visas are issued to foreign nationals for political reasons or to individuals who have provided beneficial services to Egypt. The duration of this visa is 10 years, and it is renewable for similar durations.
Need assistance hiring in Egypt? Contact us about our International EOR Service

Type of Visa/Permit

Documentation

Validity

Eligibility
Work Permit
  • A valid passport
  • 7 recent passport sized photographs
  • Copy of university degree
  • Certificates of experience
  • Results of medical tests including HIV test
  • Copy of birth and marriage certificates if dependents are included in the application
  • Copy of a job offer letter
 1 year (can be renewed up to a maximum of 5 years)
  • The applicant should have a legal entity in Egypt
  • The applicant’s position should add value to the Egyptian legal entity
  • The applicant should have at least three years of relevant experience in the same position that he or she will be holding in the Egyptian legal entity
  • The Egyptian legal entity should comply with the labor ratio of 9:1
Ordinary Residence Visa
  • Valid passport
  • Passport-sized photos
  • Completed application forms
  • Proof of financial means for residency
  • Copy of birth and marriage certificates if dependents are included in the application
  • Results of medical tests
 5 years
  • Ordinary visas are for foreign nationals who are married to Egyptians or who were born in Egypt or Palestine
Special Residence Visa
  • Valid passport
  • Passport-sized photos
  • Completed application forms
  • Proof of financial means for residency
  • Copy of birth and marriage certificates if dependents are included in the application
  • Results of medical tests
 10 years
  • Special visas are issued to foreign nationals for political reasons or to individuals who have provided beneficial services to Egypt
Onboard employees in days, anywhere in the world

Value Added Tax (VAT) in Egypt

  • The standard VAT is 14%, applicable on all goods and services, except for machinery and equipment used for industrial purposes which have a special treatment and rate if it was proved that it is only used for industrial activities.

VAT

Standard Rate

Group 1083

14%
New call-to-action

Mandatory Benefits in Egypt

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits
Tap the world's talent pool

Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

  • The tax year in Egypt is the calendar year.
  • Married persons are taxed separately, not jointly, on all types of income.
  • Individuals engaged in business or professional activities must notify the tax authorities within 30 days of starting such activities and within 30 days after ceasing activities or relocating.
  • They are also required to obtain a tax identification card.
  • Individuals deriving noncommercial profits, regardless of the amount, must submit annual tax returns and pay tax before 1 April for income derived in the preceding calendar year.
  • Employees are not required to submit annual returns for their employment income.
  • Companies must withhold monthly tax from the salaries of employees and remit such amounts to the tax authorities.
  • Nonresidents with commercial and industrial activities operating as partnerships must file annual tax returns within four months after the end of the financial year or within 30 days after the cessation of their activities.
  • Tax becomes due and is payable within 30 days after receipt of a notice of final tax assessment from the tax authorities.
  • If individuals fail to pay the tax due before the due date, a delay penalty applies until the date of payment.
  • The delay penalty is imposed at a rate of 2% plus the credit and discount rate set each January by the Central Bank of Egypt.

Payroll Accrual in Egypt

Country Accruals Additional Information

Social Security 18.75%
Maternity leave 50days
Vacations 9.32%
Dont lose your competitive advantage

Description

The employer contribution percentage is 18.75% of the total social insurance salary.

In addition to the above, any managers/board of directors whose names are included in the commercial register of the company will be socially insured as employers and would be subject to social insurance at a flat rate of 21% of the total maximum wage (i.e. EGP 7,000).

Payroll Accruals Additional Information

 

 

Employment Accruals
Annual Leave According to the Labor Law in Egypt, the duration of the employees' annual leave is 21 days per year provided they have worked one year for the employer. This equals 5.75% (21/365 days) of annual income
Maternity Leave Female employees are generally entitled to 90 days of paid maternity leave. This equals 24.65% (90/365 days) of annual income
Sick Leave An employee with proven record of sickness is entitled to a paid sick leave at the rate of 75% of his/her salary upon which social insurance payments are calculated; for a period of 90 days, to be increased to 85% for the following 90 days. Sick leaves are payable up to 180 days. This equals 75% of 24.65% (90/365 days) of annual income
Overtime Employee is only entitled to two hours of overtime pay.The minimum premiums are set at 35% of the normal pay for overtime work during daylight and 70% for work at nighttime; 100% for work performed on days off and holidays. Depends on the number of overtime hours worked
Severance With regards to terminations for economic reasons, the severance allowance must be equal to one month's wage for each of the first five years of service, and one-and-a-half months for each subsequent year This equals 8.33% (1/12 months) of annual income
Social Security There is no payroll tax other than the employer's social security contributions. The amounts paid to the concerned social insurance offices should be in accordance with the following: An employer pays 26% on monthly base salary up to EGP 1,510, and 24% on monthly amounts exceeding this amount or on other payments, including overtime or representation allowances, up to EGP 4,040. Contributions to severance indemnity fund equal 8% of monthly salary. This should be multiplied by 12 to calculate yearly contribution.

Accrued Benefits in Egypt

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay that equals two month pay after one year of service (16.66% of annual salary)

 16.66%
Of annual
salary
Vacations %

The duration of the employees' annual leave is 21 days per year provided they have worked one year for the employer (5.76% of annual salary). For employees who have worked for more than 10 years, serving at least one or more employers, the annual leave is 30 days (8.33% of annual salary)

 5.76%
Of annual
salary
Notice %

Employees are entitled to 2 months of notice period for one year of service or more (16.66%)

 16.66%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum

39.08%

Why use Global Expansion to hire in Egypt

Establishing a branch office or subsidiary in Egypt can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Egypt labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Egypt law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Egypt. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Egypt Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

New call-to-action

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal