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.
Hire Employees in Egypt
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Egypt
Compliance & Payroll
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
Compliance & Payroll
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
Taxes & Payroll in Egypt
Employee Income Taxes:
Incomes at or bellow 8000 EGP per year are not taxed.
10%: 8,001 – 30,000 EGP
15%: 30,001 – 45,000 EGP
20%: 45,001 – 200,000 EGP
22.5%: > 200,000 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
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
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.
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 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.
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 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
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.
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 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 in Egypt can be no longer than three months and must be specified in the employment contract.
Types of Leaves in Egypt
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.
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
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.
There are no laws for paternity leave in Egypt. It is up to each company’s discretion.