Hire and pay employees in Egypt
Automated social insurance, income tax withholding, and full Egyptian Labour Law compliance. Run payroll in EGP with confidence.
AT A GLANCE
Egypt employment facts
SOCIAL INSURANCE
Automated social insurance contributions and reporting
Egypt's Social Insurance and Pensions Law (Law 148 of 2019) requires combined contributions of 29.75% of insurable salary: 18.75% from the employer and 11% from the employee. Contributions cover old age, disability, death, work injury, sickness, and unemployment insurance. Remote& automatically calculates contributions based on each employee's insurable salary, applies the correct caps, and generates the monthly Form 2 required by the National Organization for Social Insurance (NOSI).
- Automatic employer (18.75%) and employee (11%) split calculation
- Insurable salary cap tracking and annual adjustments
- Monthly Form 2 generation for NOSI submission
- New hire registration (Form 1) and termination (Form 6) support
INCOME TAX
Progressive income tax brackets, calculated automatically
Egyptian personal income tax follows a progressive bracket system with rates ranging from 0% to 27.5%. Employers are responsible for withholding tax from employee salaries and remitting it to the Egyptian Tax Authority (ETA) on a monthly basis. Remote& applies the current tax brackets automatically, accounts for the annual personal exemption, and generates the quarterly tax return data you need for ETA filing.
- Progressive tax brackets from 0% to 27.5% applied automatically
- Personal exemption and special deductions calculated
- Monthly withholding and quarterly reporting
- Year-end tax reconciliation support
EMPLOYMENT CONTRACTS
Compliant contracts in Arabic and English
Egyptian Labour Law (Law 12 of 2003) requires employment contracts to be in Arabic, with a translated copy permitted for foreign employees. Contracts must specify salary, job description, contract duration, and benefits. Remote& generates bilingual employment contracts that comply with all Egyptian Labour Law requirements, including clauses for probation periods (maximum 3 months), non-compete provisions, and termination conditions.
- Bilingual Arabic-English contract templates
- Fixed-term and indefinite contract support
- Probation period management (up to 3 months)
- Automatic renewal tracking for fixed-term contracts
LABOUR LAW ESSENTIALS
Leave, overtime, and termination compliance
Egyptian Labour Law mandates 21 days of annual leave for employees with less than 10 years of service, increasing to 30 days after 10 years. Employees over 50 also receive 30 days. Overtime is capped at specific limits and must be compensated at premium rates. Remote& tracks all leave entitlements, calculates overtime pay, and ensures termination procedures follow the required notice periods and end-of-service calculations.
- Annual, sick, and maternity leave tracking
- Overtime calculation at 35% (day) and 70% (night) premiums
- Notice period enforcement (2-3 months based on tenure)
- End-of-service compensation calculations
FAQ
Frequently asked questions about hiring in Egypt
The total social insurance rate is 29.75% of insurable salary. Employers pay 18.75% (covering old age/disability/death at 12%, work injuries at 1.5%, sickness at 3.25%, and unemployment at 2%) and employees contribute 11% (all toward old age/disability/death). Contributions are calculated on the insurable salary, which is subject to minimum and maximum caps that are adjusted annually by NOSI.
Egypt uses a progressive income tax system. The first EGP 40,000 of annual income is exempt. Income from EGP 40,001 to EGP 55,000 is taxed at 10%. Income from EGP 55,001 to EGP 70,000 at 15%. Income from EGP 70,001 to EGP 200,000 at 20%. Income from EGP 200,001 to EGP 400,000 at 22.5%. Income from EGP 400,001 to EGP 1,200,000 at 25%. Income exceeding EGP 1,200,000 is taxed at 27.5%.
No. Under Egyptian Labour Law, employment contracts must be in Arabic. An English translation can be provided as a supplementary copy, but the Arabic version takes legal precedence in any dispute. Remote& generates bilingual contracts to ensure both parties understand the terms while maintaining legal compliance with the Arabic-language requirement.
For indefinite-term contracts, the notice period is 2 months for employees with up to 10 years of service, and 3 months for those with more than 10 years. During probation (maximum 3 months), either party can terminate without notice. For fixed-term contracts, early termination requires compensation equal to the remaining contract period's salary, unless there are grounds for termination under Article 69 of the Labour Law.
Standard working hours in Egypt are 8 hours per day or 48 hours per week. Overtime must be compensated at a premium: 35% above the regular hourly rate for daytime overtime and 70% for nighttime overtime. Overtime hours are limited and must not cause the total daily working hours to exceed 10 hours. Employers must maintain accurate overtime records, and employees cannot be required to work overtime without their consent except in specific circumstances defined by law.
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