Employer of Record in Egypt

Businesses can only operate smoothly in Egypt if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Egypt below, to avoid any compliance issues.

Employment Contract Requirements

Written documentation is a requirement for employment contracts in Egypt. These contracts are issued in Arabic, with three copies provided: one for the employer's records, one for the employee, and another for the social security authority. Details include:

• Job description
• Employment start date
• Duration of the employment
• Termination conditions

Onboarding Process

We can help you get a new employee started in Egypt quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Egypt

The typical work week in Egypt is from Sunday to Thursday, with Friday and Saturday being the weekend. The standard working hours vary, but a common practice is an eight-hour workday, resulting in a 40-hour work week.

Overtime in Egypt

Employees receive an overtime premium of 35% for daytime work, 70% for nighttime work, and 100% for work done on days off and holidays.

Probation Period in Egypt

Probation periods are mandatory in Egypt, ranging from a minimum of 30 days to a maximum of 90 days (3 months). During this period, employers may terminate the contract without reason and without severance.

Fiscal Year in Egypt

1 July - 30 June is the 12-month accounting period that businesses in Egypt use for financial and tax reporting purposes.

Payroll Cycle in Egypt

The payroll cycle in Egypt is usually monthly, with employees being paid 5th of the following month.

Minimum Wage in Egypt

The minimum wage for employees in Egypt is typically 37,5 EGP per hour, amounting to ~6,000 EGP per month for a typical 40 hour work week.

Bonus Payments in Egypt

In Egypt, employers are not legally obligated to provide 13th-month payments.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 19.75% on top of the employee salary in Egypt.

Employee Payroll Tax Contributions

In Egypt , the typical estimation for employee payroll contributions cost is around 11%.

Individual Income Tax Contributions

Individual income tax in Egypt is calculated using progressive rates ranging from 0% to 25%.

Pension in Egypt

In Egypt, both employers and employees must make mandatory social security contributions for pensions, covering old age, disability, and survivors. Workers can receive a full pension at age 60 with a minimum of 15 years of contributions. Alternatively, they can access an early pension with 25 years of contributions at any age.

In Egypt, employing foreign nationals requires securing work permits such as the Temporary/Tourist Visa or the Ordinary Visa. The process involves thorough documentation, compliance with labor quotas, and health clearances. Employers must initiate applications early and ensure all requirements are met to avoid delays. Legal consultation is recommended to navigate Egypt's strict regulations.

Mandatory Leave Entitlement in Egypt

The annual leave entitlement in Egypt is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Egypt

Egypt observes 12 national holidays over 15 days:

Paid Time Off in Egypt

In Egypt, employees get 21 days of paid annual leave after six months of continuous employment.

• Annual leave increases to 30 days for those with ten years of consecutive service or aged over 50.

Maternity Leave In Egypt

Pregnant employees with 10 consecutive months of work are eligible for 90 days of paid leave, receiving 100% of their salary up to a maximum of 12,600 EGP per month, covered by social security.

Paternity Leave In Egypt

Egypt's labor laws do not mandate paternity leave for fathers. However, some private sector companies have independently introduced paternity leave policies.

Sick Leave In Egypt

Employees can receive paid sick leave for up to one year, with varying rates and pay sources depending on the duration:

• During the initial 90 days of sick leave, employees receive 75% of their salary.
• Employees are paid 85% of their salary for the subsequent 90 days of sick leave.

Parental Leave In Egypt

For companies with over 50 employees, mothers are eligible for 24 months of unpaid leave per child.  Female employees can exercise this option twice during their entire tenure.

Casual Leave

Employees can take up to six days off annually without stating a reason, with a maximum of 2 days per leave. These days are included in the annual leave count.

Pilgrimage Leave

Following five consecutive years of service, employees are entitled to one month of paid leave for a pilgrimage to Mecca or Jerusalem. This leave is granted once during the employee's tenure with the employer.

Termination Process in Egypt

In Egypt, employers may not terminate employees at will outside of the probation period. To terminate, they must appear before a Ministry committee within 15 days of the request; if approved, the employee can still contest the dismissal in court. Appropriate reasons for termination include:

• Voluntarily by the employee
• Mutual agreement
• Underperformance due to unsuitability for the role
• Expiration of the contract

Notice Period in Egypt

The notice period starts at 60 days and extends based on the tenure of employment:

• Service duration under 10 years: 60 days
• Service beyond 10 years: 90 days

Severance in Egypt

In Egypt, severance pay isn't mandatory unless the termination was unjust. Throughout the notice period, the employee continues to receive their regular salary.