Egypt Employer of Record & Payroll
Africa Deployments Egypt offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Egypt for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Egypt.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Egypt , Medical, Disability and Life.
Egypt is home to ±111.8 million people, most of whom live along the banks of the Nile River, making the population density one of the highest in the world.
As well as its mighty Nile, Egypt is well known for its magnificent monuments, the beguiling desert and lush delta.
In terms of Egypt’s cities, Cairo offers highlights such as the Great Pyramids of Giza, the Egyptian Museum and Khan El Khalili Bazaar. Luxor, Alexandria and Aswan are also popular destinations.
Egypt’s main exports include petroleum and petroleum products, raw / yarn cotton, and textiles.
What is the main language spoken in Egypt:
Egypt’s official language is Arabic, and most Egyptians speak one of several vernacular dialects of it: Egyptian Arabic (68%), Sa’idi Arabic (29%), Northwest Arabian Arabic or Eastern Egyptian Bedawi Arabic (1.6%).
As per other Arab countries, the spoken vernacular differs greatly from the literary language
What type of employment contracts can you offer in Egypt:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probation periods may not exceed three months and may not be renewed.
WHAT INCOME IS TAXABLE IN Egypt:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Egypt:
In Egypt the current tax law exempts severance pay, pension payments after the fulfilment of specific conditions, and employees’ profit share.
Standard working hours: Number Overtime to be paid?
In Egypt, the standard working hours are 8 hours per day or 48 hours per week. Overtime work, which exceeds these hours, is subject to additional compensation. The overtime pay rate ranges from 1.25 to 2 times the regular hourly wage, depending on factors such as daytime or nighttime work, and whether it falls on official holidays or the employee’s weekly rest day. However, it’s essential to consider industry-specific regulations and individual employment contracts for precise details regarding overtime rates in Egypt.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
11% |
EGP 4000 |
|
National Health Insurance Fund (CNAM) |
1% |
None
|
|
National Pension Fund (CNAPS) |
1% |
EGP 2000 |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
26% |
EGP 4000 |
|
National Health Insurance Fund (CNAM) |
4% |
None |
|
National Pension Fund (CNAPS) |
1% |
EGP 2000 |
Social
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
26% |
11% |
|
National Health Insurance Fund (CNAM) |
4% |
1% |
|
National Pension Fund (CNAPS) |
1% |
1% |
What is the Maternity and Paternity policy within Egypt:
- Entitled to 90 working days leave from work on full pay.
- 1 day paid leave per year
- Subject to presentation of the child’s birth certificate
What type of leave is allowed in Egypt:
Annual leave
21 days, full pay for six months of continued service that can be used during the calendar year.
Sick Leave
Employees are generally entitled to up to 6 months of sick leave to be paid at between 75% and 100% of the employee’s regular wage.
Do I need to pay a mandatory bonus annually OR is it discretionary in Egypt:
Annual bonuses are common in Egypt, and whilst at the employer’s discretion, bonuses ideally should be budgeted for.
What Gratuity / Severance payments do you need to provide for Egypt:
- Provided to employees upon termination of employment.
- Amount depends on length of service.
- Employees with less than one year of service receive half a month’s salary for each month worked.
- Employees with one year or more of service receive one month’s salary for each year of service.
- Severance pay should not exceed the equivalent of 12 months’ salary.
- Employees are entitled to a minimum of 30 days’ notice upon termination.
- Payment in lieu of notice is also acceptable.
CAN YOU GIVE FRINGE BENEFITS IN Egypt:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Egypt:
- Egypt has a mandatory probation period for new employees.
- The probation period usually lasts for three months.
- During this time, either the employer or the employee can terminate the contract without notice or severance pay.
- If the employment continues after the probation period, regular terms and conditions apply.
- The probation period can be extended up to a maximum of six months.
- Specific industries or collective bargaining agreements may have different probation period rules.
- Consult local labor laws or legal experts for accurate information.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Egypt:
Corporate Tax Rates: 22.5% [in general]
VAT / Sales Tax Rates: 14% [on most goods and services]
Public Holidays in Egypt:
- January 7 - Coptic Christmas
- January 8 - Coptic Christmas Holiday
- January 26 - Revolution Day January 25 (in lieu)
- April 16 - Coptic Easter Sunday
- April 17 - Sham El Nessim
- April 20 - End of Ramadan
- April 21 - End of Ramadan
- April 22 - End of Ramadan Day 2
- April 23 - End of Ramadan Day 3
- April 24 - End of Ramadan Day 4
- April 25 - Sinai Liberation Day
- May 04 - Labour Day
- June 27 - Eid-el-Kibr Holiday
- June 28 - Eid-el-Kibr Holiday
- June 29 - Eid-el-Kibr
- June 30 - Eid-el-Kibr Holiday
- June 30 - Revolution Day
- July 01 - Eid-el-Kibr Holiday
- July 02 - Eid-el-Kibr Holiday
- July 19 - El Hijra
- July 23 - Revolution Day
- September 27 - Al-Mouled Al-Nabawy
- October 06 - Armed Forced Day
What Industries we support in Egypt:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
