Country Guides
Egypt
Employment in Egypt at a glance
Capital
Cairo
Language
Arabic
Remote workers
N/A
Currency
Egyptian Pound (EGP)
Working hours
48 hours per week
Public holidays
18-20 days
Minimum wage
7,000 EGP for private sector; 4,000 EGP for public sector employees
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
In Egypt, there is no specific standalone penalty for employee misclassification. However, if a worker is incorrectly treated as an independent contractor, employers may face liabilities under Labour Law No. 14 of 2025 and the Social Insurance Law for failing to meet employment obligations, such as proper registration, payment of wages, and provision of benefits. Penalties may include fines, as well as liability for unpaid social insurance contributions and other employee entitlements.
Fun fact
The Nile River, which flows through Egypt, is one of the longest rivers in the world and has supported civilization for over 5,000 years.
Taxes in Egypt
EMPLOYER CONTRIBUTIONS
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Employment tax: 0%
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Social security contributions: 18.75%
Social security contributions: Social insurance
Contribution amount: 18.75%
EMPLOYEE CONTRIBUTIONS
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Income tax: 0%-27.5%
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Social security contributions: 11%
Social security contributions: Social insurance
Contribution amount: 11%
INCOME TAX
Gross Income (ARS): EGP 1 - 40,0000
Tax rate: 0%
Gross Income (ARS): EGP 40,000 - 55,000
Tax rate: 10%
Gross Income (ARS): EGP 55,000 - 70,000
Tax rate: 15%
Gross Income (ARS): EGP 70,000 - 200,000
Tax rate: 20%
Gross Income (ARS): EGP 200,000 - 400,000
Tax rate: 22.5%
Gross Income (ARS): EGP 400,000 - 1,200,000
Tax rate: 25%
Gross Income (ARS): Over EGP 1,200,000
Tax rate: 27.5%
Employer of Record in Egypt
What is an EOR?
An Employer of Record is the legal employer of a worker in Egypt. As such, the Employer of Record takes care of all Egyptian compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
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Ensuring their employment is compliant with local employment laws
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Processing local payroll
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Filing employment related taxes and returns
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Issuing payslips to the employee
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Distributing salary payments
How it works
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Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
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Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
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Employee
Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.
Benefits in Egypt
Statutory benefits in Egypt
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Public health insurance
Public health insurance is mandatory in Egypt for all Egyptian citizens residing in Egypt, except for military personnel. The premiums for public health insurance are paid by employers, employees, and family members. The exact amount of the premium varies depending on the income of the individual or family.
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Social security
Egypt’s social security system provides various benefits to eligible individuals, including pensions, disability benefits, health care, and other social assistance programs. Social security contributions are mandatory for both employers and employees.
Common non-mandatory benefits in Egypt
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Private medical insurance
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Performance/ retention bonuses
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Meal allowance and food vouchers
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Transportation allowance or company transport
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Mobile phone/ Internet allowance
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Flexible or remote working arrangements
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Training and professional development
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Wellness programs
Rights & protections in Egypt
Right to wages
Equal pay
Leave rights
Employment contract
Protection against harassment
Health and safety measures in the workplace
Protection against discrimination
Protection against dismissal
Severance pay
Leave in Egypt
Paid time off
15 days [1 year of service], 21 days [2-10 years of service], 30 days [10+ years of service], 45 days [only available for disabled employees from the first day of employment]
Sick leave
180 days paid by social security (75% of salary for the first 90 days and increased to 85% of the salary for the following 90 days)
Maternity leave
4 months
Paternity leave
1 day per child for up to three children
Childcare leave
Only applicable to companies with 50+ employees. 1 day per child for up to three children
Employment conditions in Egypt
Working hours
In Egypt, standard working hours are 48 hours per week (8 hours per day), excluding breaks. Any work beyond this is considered overtime. Total working hours, including overtime, must not exceed 10 hours per day, and employees cannot remain at the workplace for more than 12 hours per day, including rest periods.
Pilgrimage leave
Any employee who has worked for a minimum of five continuous years for an employer is entitled to paid leave of one month for a pilgrimage to Saudi Arabia or visiting Jerusalem. (This leave can be granted only once).
Payments in Egypt
Payday
Salaries are generally paid on the last working day of the calendar month or around the 1st to the 5th day of the following month.
Pay frequency
The standard payroll frequency is monthly.
End of employment in Egypt
In Egypt, employment may be terminated due to resignation, mutual agreement, during the probation period, or by the employer for reasons such as misconduct, poor performance, or unjustified absence. Resignation requires proper notice, failing which compensation may be due, while termination by mutual agreement carries no penalties if entered into freely. During the probation period, either party may terminate the employment without compensation. Employer-initiated termination must be justified and follow legal procedures; otherwise, it may be deemed unfair and require compensation of at least two months’ salary per year of service. In all cases, employees are entitled to their final dues, including outstanding wages and payment for unused leave.
FAQs
There are four ways to employ someone in Egypt. You can run payroll from your HQ for short-term arrangements, engage contractors for independent work, set up a local entity to hire directly, or partner with an Employer of Record. Each option comes with different compliance and operational considerations. An EOR is often used to employ workers without establishing a local company.
Setting up a local company in Egypt is relatively straightforward. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed.
Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Egypt, employment is the right structure under Egyptian law, covering entitlements like paid annual leave, sick leave, and social insurance. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Egypt.
HR compliance in Egypt means your policies and procedures respect all applicable Egyptian employment laws and regulations. When you hire in Egypt, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave, minimum wage, social insurance, and working hours under the 48-hour week. Following these is fundamental for running the business well.
An Employer of Record is the legal employer of the individual in Egypt for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as four months of paid maternity leave and 18-20 public holidays. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.
Boundless as the Employer of Record Egypt files all pertinent taxes and other contributions as they relate to the compliant employment of an individual in Egypt.
Boundless partners with employment lawyers and advisers in each country we operate in, including Egypt. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.
The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.
Boundless ensures compliance with Egypt-specific procedures, practices and labour laws while employing people and teams on behalf of the company.
Any new employee that is locally employed through an Employer of Record gets full employment rights and benefits as specified in Egyptian employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more.
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