Africa Deployments Egypt offers comprehensive Employer of Record (EOR) services across all regions in the country. We cater to both full-time employment and fixed-term contracts for local and expatriate professionals. Under our EOR umbrella, we handle work permits, issue local contracts, and provide expert advice on best Human Resource (HR) practices for local employee setups.

Compliance and Payroll Management

We ensure compliance with local regulations by managing tax and PAYE remittances to the Revenue Services on a monthly basis. Salaries are paid punctually, and employees receive official pay slips. Additionally, we offer optional benefits such as Medical, Disability, and Life insurance coverage for employees in Egypt.

Egypt at a Glance

• Population: ~111.8 million (2021)
• Currency: Egyptian Pound (EGP)
• Capital: Cairo
• Language: Arabic
• GDP: 404.1 billion USD (2021)
• Key Industries: Agriculture and Petroleum

Employment Contracts in Egypt

We provide the following types of employment contracts:

• Fixed Term Contracts
• Indefinite Term Contracts

Contract Requirements:

• Must be in writing
• Must be in Arabic and denominated in EGP
• Should specify salary, benefits, and termination conditions

Probation periods may not exceed three months and are non-renewable.

Taxable Income in Egypt

All forms of remuneration, including salaries, overtime, bonuses, and other cash benefits, are subject to taxation under Egyptian law. Exemptions include severance pay, pension payments (under specific conditions), and employees’ profit shares.

Working Hours and Overtime

• Standard Working Hours: 8 hours per day or 48 hours per week
• Overtime Rates: 1.25 to 2 times the regular hourly wage, depending on factors such as holiday or nighttime work

Mandatory Contributions

Employee Contributions:

• Social Security Fund: 11% (threshold: EGP 4000)
• National Health Insurance Fund: 1% (no threshold)
• National Pension Fund: 1% (threshold: EGP 2000)

Employer Contributions:

• Social Security Fund: 26% (threshold: EGP 4000)
• National Health Insurance Fund: 4% (no threshold)
• National Pension Fund: 1% (threshold: EGP 2000)

Leave Entitlements

• Maternity Leave: 90 working days with full pay
• Paternity Leave: 1 day of paid leave per year (with birth certificate)
• Annual Leave: 21 days after six months of continuous service
• Sick Leave: Up to six months paid between 75% and 100% of regular wages

Severance, Gratuity, and Notice Periods

• Severance Pay:
  • Less than one year: Half a month’s salary per month worked
  • One year or more: One month’s salary per year of service
  • Maximum limit: 12 months’ salary
• Notice Period: Minimum 30 days or payment in lieu of notice

Fringe Benefits

Fringe benefits are subject to PAYE tax unless they are non-convertible to cash. Employer-covered expenses, such as mobile phone allowances, are taxable unless the employer bears the PAYE portion.

13th Month Pay

Not mandatory but often provided at the employer’s discretion.

Corporate and VAT Rates

• Corporate Tax: 22.5%
• VAT: 14% (on most goods and services)

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Public Holidays in Egypt

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• 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

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Supported Industries in Egypt

• Non-Governmental Organizations (NGOs)
• Engineering & Construction
• Government & Development Agencies
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance & Banking
• Agriculture

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Contact Us
For detailed assistance with Employer of Record (EOR) services in Egypt, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.