Egypt

Employer of Record & PEO in Egypt

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

Native Language

Arabic

Employee Protection

Medium

Payroll Frequency

Monthly

Capital city

Cairo

Termination

Hard

Internet

Slow

Currency

Egyptian Pound (EGP)

Immigration

Hard

English Speaking

<20%

Population

102.67 Million

Employment Cost

Low

Cost of Living

Medium

How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Egypt. Registering a legal entity in Egypt as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Egypt in full accordance with local labor laws in under a week.

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 in Egypt. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in Egypt.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in Egypt in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Egypt while NNRoad manages payroll & HR liabilities.

  • Acting as an employer of record for your leased employees
  • Hiring of employees, including drafting of bilingual employment contracts, registration with local authorities, set up your employee on the payroll software
  • On boarding and off boarding of employees in accordance with local laws
  • Contract renewals
  • Termination of employee
  • Complete payroll solution and statutory benefits
  • Provide required documents to obtain working visa

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.

➊ You interviews & select the candidates you want to hire in Egypt.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Egypt while NNRoad manages payroll & HR compliance.

  • Registration and de-registration of the necessary company and personnel information for payroll calculation in the payroll software and system
  • Monthly payroll processing
  • Annual payroll tax compilation
  • Annual preparation of Form 2 for social insurance authorities

Advantages of NNRoad's Egypt Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Egypt.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Egypt.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance 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 Contributions:

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 Contributions:

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

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.

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. 

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

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.

Public Holidays in Egypt

Public Holidays in Egypt

  • 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

Paid Leave 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.

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

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

Types of Leaves in Egypt

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.

Immigration Laws in Egypt

Foreign workers in Egypt need a work permit. Like in many other countries, a work visa for Egypt can only issued in Egypt. This usually means having to enter the country on a tourist visa with job opportunity already secured and converting it to a work visa.

Required documents (employee & employer):

  • Work permit application from the Ministry of Manpower and Training Facilities at the Tahrir complex
  • A valid passport
  • Seven passport-size photos
  • Two copies of your company’s incorporation contract
  • Two copies of the employee’s tax ID card
  • Two copies of the individual’s academic degrees and certificates
  • A copy of your company’s commercial registration
  • License for exercising the profession, if applicable
  • A memorandum justifying your reason for hiring a foreigner
  • Approval from the related authority
  • Proof of a company representative acting on the employee’s behalf to apply for the work permit
  • A negative HIV test
  • Paid permit fees of 1,000 EGP

 

Resources

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