Hire in Egypt

Egypt PEO &

Employer of Record

Hire & manage teams remotely in Egypt without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Arabic

Salary Currency

Egyptian Pound (EGP)

Payroll tax

19.75% - 20.75%

Payroll Cycle

Monthly

Time zone

UTC +3

Capital city

Cairo

Hire Employees in Egypt

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Egypt complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Egypt

Employer of Record (EOR) services are for companies who do not have a legal entity in Egypt, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Egypt.

02.

Employee Onboarding

We sign a local labor contract with your employees based in Egypt.

03.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Egypt.

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Egypt.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Egypt

Professional Employment Organization (PEO) services are for companies who have a legal entity in Egypt, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Egypt.

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Egypt.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

PEO in Egypt

Taxes & Payroll in Egypt

Employee Income Taxes:

Individual income tax rates in Egypt are based on progressive tax brackets.

Incomes at or bellow 8000 EGP per year are not taxed.

Tax Brackets

0%: 0 – 8,000 EGP
10%: 8,001 – 30,000 EGP
15%: 30,001 – 45,000 EGP
20%: 45,001 – 200,000 EGP
22.5%: > 200,000 EGP

Sample Calculation

Yearly income = 40,000 EGP
15% * 10,000 = 1500
10% * 22,000 = 2200
0% * 8000 = 0
1500+2200+0 = 3700

Yearly income tax = 3700 EGP

Employer Costs in Egypt

Employer Contribution

Employers must pay contributions based on the salary of their employees. In Egypt, the employer must contribute between 19.75% – 20.75%

18.75% – Social Security: (Minimum is 1200 EGP and maximum is 8100 EGP)
1% – Unemployment insurance

Employee Contribution

11% – Social security (minimum set at 1,200 EGP and capped at 8,100 EGP)

Benefits & Insurance in Egypt

In Egypt, mandatory benefits, also known as social insurance, are to be contributed to by both the employer and employee. Contributions are made to the National Organization for Social Insurance (NOSI) and cover old-age, occupational accidents, sickness, and unemployment insurance. It is the employer’s responsibility to withhold the employee’s social insurance contributions at source and make payments each month.

Pension Fund

In Egypt, the pension system is administered through the Egyptian Pension Fund (EPF), which provides retirement benefits to eligible workers. It operates as a mandatory social insurance program, where both employees and employers make contributions towards the pension fund. The EPF offers various pension schemes based on employment type, including public and private sector employees, as well as self-employed individuals.

Healthcare Insurance

Healthcare insurance in Egypt is primarily provided through a combination of public and private sector initiatives. The main public healthcare insurance program is the Egyptian Health Insurance Organization (EHIO), which offers coverage to eligible citizens and residents. Private health insurance plans are also available and commonly used to supplement the public system, providing additional coverage and access to a wider range of healthcare services.

PEO in Egypt

Working Hours in Egypt

Working Hours Per Week

The work week in Egypt is 8 hours a day and 40 hours a week. Employees who work more than 40 hours per week are entitled to overtime rates of 135% of their regular salary during daylight hours and 170% during night hours.

Overtime

Overtime in Egypt refers to additional hours worked beyond the regular working hours specified by the labor law. Employees who work overtime are entitled to receive additional compensation, usually at a higher rate than their regular hourly wage. The maximum limit for overtime hours is set at 2 hours per day and 12 hours per week, unless there is an exceptional circumstance or urgent work, in which case it may be extended with certain restrictions and conditions.

Termination Laws in Egypt

Severance

Egypt does not have a law entitling employees to severance pay in the case of termination. This is unless the termination is unjustified, or the employer voluntarily pays severance.

Notice Period

Termination notices in Egypt vary depending on how long the employee has worked for the employer. Employees with less than 10 years of employment are entitled to a 2 months termination notice. Employees with more than 10 years of employment are entitled to a 3 months termination notice.

Employment Contract in Egypt

Employment Contract

Employment contracts in Egypt must be inn writing and must be written in Arabic. The employer, employee and social insurance office must each receive a copy of the contract.

Probation Period

Probation in Egypt can be no longer than three months and must be specified in the employment contract.

Types of Leaves in Egypt

Annual Leave

Employees who have been employed for a minimum of 6 months by the same employer are entitled to 21 days of paid annual leave per year.

Employees who have been employed for a minimum of 10 years by the same employer or are 50 or more years old are entitled to 30 days of paid annual leave per year.

Sick Leave

Employees in Egypt are entitled to six months of paid sick provided they present a doctor’s certificate confirming the need for sick leave.

First 90 days of sick leave: 75% normal salary rate
Remaining 90 days of sick leave: 85% normal salary rate

Maternity Leave

Female employees who have been employed by the same employer for a minimum of 10 months are entitled to 3 months of paid maternity leave.

Paternity Leave

There are no laws for paternity leave in Egypt. It is up to each company’s discretion.

Public Holidays in Egypt

Public Holidays

  • Coptic Christmas Day
  • January Revolution Day
  • Coptic Easter Sunday
  • Sham el Nessim
  • Sinai Liberation Day
  • Labour Day
  • Eid al-Fitr
  • Revolution Day
  • Arafat Day
  • Eid al-Adha
  • Revolution Day
  • Islamic New Year
  • Armed Forces Day
  • Prophet Muhammad’s Birthday
  • Resources

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