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Payroll and Benefits Guide Egypt

Last updated: May 03, 2023

Currency
Egyptian Pound (EGP)
Employer Taxes
19.75%- 22.00%
Payroll Frequency
Monthly
Employee Costs
11%
Capital
Cairo
Date Format
dd/mm/yyyy
Fiscal Year
1 July - 30 June
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Contribution

Employer
Employer Payroll Contributions
18.75%
(21% for Members of the Board of Directors)
Social Security (Minimum taxable wages is 2,000 EGP and maximum is 12,600 EGP annually )
1.00%
Emergency Relief (ER) Fund- 1.00% of the basic social insurance salary (2,370 EGP)
19.75%
Total Employment Cost

 

Employee
Employee Payroll Contributions
11.00%
Social Security (Minimum taxable wages is 2,000 EGP and maximum is 12,600 EGP annually)
11.00%
Total Employee Cost

Employee Income Tax
Net income not exceeding  600,000 EGP
0.00% Up to 40,000 EGP annually
10.00% 40,001 EGP – 55,000 EGP annually
15.00% 55,001 EGP – 70,000 EGP annually
20.00% 70,001 EGP – 200,000 EGP annually
22.50% 200,001 EGP – 400,000 EGP annually
25.00% Over 400,000 EGP annually
Net income more than  600,000 EGP and not exceeding  700,000 EGP
10.00% Up to 45,000 EGP annually
15.00% 45,001 EGP – 60,000 EGP annually
20.00% 60,001 EGP – 200,000 EGP annually
22.50% 200,001 EGP – 400,000 EGP annually
25.00% Over 400,000 EGP annually
Net income more than  700,000 EGP and not exceeding  800,000 EGP
15.00% Up to 60,000 EGP annually
20.00% 60,001 EGP – 200,000 EGP annually
22.50% 200,001 EGP – 400,000 EGP annually
25.00% Over 400,000 EGP annually
Net income more than  800,000 EGP and not exceeding  900,000 EGP
20.00% Up to 200,000 EGP annually
22.50% 200,001 EGP – 400,000 EGP annually
25.00% Over 400,000 EGP annually
Net income more than  900,000 EGP and not exceeding  1,200,000 EGP
22.50% Up to 400,000 EGP annually
25.00% Over 400,000 EGP annually
Net income more than   1,200,000 EGP
25.00% Up to 1,200,000 EGP annually
27.50% Over 1,200,000 EGP annually

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The minimum wage in Egypt for the private sector is currently set at  3,500 EGP.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Egypt, the payroll frequency is monthly and payment must be made by the 5th of the following month.

13th Salary

In Egypt, there is no legal requirement for 13th-month payments.

Working Hours

General

The standard working week in Egypt consists of 8 hours a day and 40 hours per week.

Overtime

All working hours above 48 hours per week are subject to overtime pay at a rate of 135.00% of their regular salary rate of pay during daylight hours and 170.00% of their regular salary rate of pay for work at night. For work performed on non regular working days, the rate is twice the daily wage plus another day off during the following week; working on days off must be mutually agreed upon in advance.

Leave

Annual Leave (vacation)

In Egypt, employees are entitled to 21 working days of paid annual leave per year if employed for at least six consecutive months.
It increases to 30 days of paid annual leave for employees who have completed ten years of consecutive employment or employees over 50 years of age.

Unused vacation days carry over into the next year.

Public Holidays

Each year the government may decide if public holidays falling on weekends will be moved to a weekday or will be lost.

Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Date Day Holiday Notes
7 Jan 2024 Sunday Coptic Christmas Day
25 Jan 2024 Thursday Revolution Day
10 Apr 2024 Wednesday Eid al-Fitr Tentative
11 Apr 2024 Thursday Eid al-Fitr Holiday Tentative
12 Apr 2024 Friday Eid al-Fitr Holiday Tentative
25 Apr 2024 Thursday Sinai Liberation Day
1 May 2024 Wednesday Labor day
6 May 2024 Monday Sham el Nessim
16 Jun 2024 Sunday Arafat Day
17 Jul 2024 Wednesday Eid al-Adha Tentative
18 Jul 2024 Thursday Eid al-Adha Holiday Tentative
19 Jul 2024 Friday Eid al-Adha Holiday Tentative
20 Jul 2024 Saturday Eid al-Adha Holiday Tentative
30 Jun 2024 Sunday June Revolution Day
8 Jul 2024 Monday Islamic New Year Tentative
23 Jul 2024 Tuesday July Revolution Day
16 Sep 2024 Monday Prophet Muhammad’s Birthday
6 Oct 2024 Sunday Armed Forces Day

Sick Days

An employee is entitled to up to 6 months of paid sick leave covered by social security. The employee must provide a professional medical certificate confirming the sickness.
For the first 90 days of sick leave, the employee is entitled to 75% of the regular salary rate. After that, this increases to 85% of the normal rate of pay for 90 days.

Maternity Leave

Female employees who have been employed for ten consecutive months are entitled to 90 days of paid maternity leave. Maternity leave pay is 100% of salary, covered by Egyptian social security at 75% of the social insurance salary (10,900*75%)  and by the employer for  25% of the salary . It is common for the employer to cover the whole 100% for the entire 3 months.

Employees are entitled to take three periods of maternity leave during their total employment service.

Upon return to the workplace, the woman is entitled to two thirty-minute nursing breaks or a combined one-hour nursing break each day for up to two years after the date of birth.

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

Employers who have more than 50 employees in the company must provide mothers with 24 months of unpaid leave for each child.
If the company has at least 50 employees, female employees are entitled to take up to two years of unpaid leave to take care of their child. An employee can take this type of leave twice during the entire service of the employee.

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, on approval of the employer and employee for the following:

  • Casual leave – Employees are entitled to up to six days off from work per year and are not required to state a reason for taking the leave. Employees are allowed to take a maximum of two days per leave. Casual leave counts as part of annual leave.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination.
An employer who wishes to terminate an employee must go before a committee with judicial powers at the Ministry of Manpower and Migration. The committee has 15 days to decide whether to grant the request. The employer may then dismiss the employee, who retains the right to challenge the dismissal in court.

Notice Period

In Egypt, the periods of notice are determined according to the employment agreement/contract and collective agreement in place and the length of service by the employee. If the employee has completed less than ten years of service, the notice period is two months increasing to three months for employees with more than ten years of service. No notice is required during the probation period.

Severance Pay

There is no statutory severance pay unless the employee’s termination is unjustified or the employer has voluntarily provided it.

Probation Period

In Egypt, the probation period is fixed by the employment contract and by law, cannot exceed three months.

VISA

VISA

Foreigners are strictly prohibited from carrying on any work in Egypt without a valid work permit. A work permit for Egypt is granted by the Ministry of Manpower in Egypt and is usually for one year.
Before the authority issues a work permit for foreigners, a labor market test must prove that there are no local residents eligible for that position. When a work permit is finally granted, the applicant must train at least two local Egyptian nationals to work in the same position. Applying for a work permit in Egypt typically takes one to three months until the applicant can enter Egypt. It may take a further two to four months before the process is completed.
Egypt offers several types of visas, including the following:

  • Work visa: Once a foreign national gets a work permit, their visa, such as a temporary/tourist visa, will be converted into a work visa.
  • Temporary/tourist visa: This option is a renewable single-entry 30-day tourist visa that individuals can get when arriving at Egyptian airports. It’s also the visa individuals obtain for a job.
  • Ordinary visa: An ordinary visa is valid for three to five years and allows an employee’s spouse to have a resident permit for the amount of time identified on their work permit.
  • Special visa: The special visa is for expats born in Egypt before May 26, 1952, or individuals who have lived in Egypt for more than 20 years from that date. It’s valid for ten years and can be renewed.

VAT

General

The standard rate of VAT in Egypt is 14.00%.

Stay up to date on payroll & employment law changes

Version History

February 2, 2024
Minimum wage is increased to 3500 EGP.
February 2, 2024
The taxable wages lower and upper limits have been increased.
November 1, 2023
Minimum was increases t0 3,000 EGP per month.
July 1, 2021
Minimum wage increases to 2,400 EGP per month.
February 27, 2022
The minimum wage in Egypt is currently set at 2,700 EGP for the public sector and for the private sector it is set at 2,400 EGP.
Payroll contributions and personal income tax rates have been updated.
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Questions & Answers

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Kaleem F.
Kaleem F.
1 year ago

Is backdating an employment agreement legal?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Kaleem F.

In Egypt, it is legal. Backdating must be done within the calendar month, and the contract must be signed before any payment can be made to the employee.

Buwaneka Wimalarathna
Buwaneka Wimalarathna
1 year ago

Hi

Two questions.

  1. is there any benefit (additional allowance) to employees once they completed 5 years or 10 years of service?
  2. if so, should it granted to the employees during their resignations or terminations along with the full & final settlement.
Erez Greenberg
Erez Greenberg
1 year ago

Paid time off and notice periods change for employees with ten or more years of service. Paid time off increases to 30 days of paid annual leave and the notice period increases to 3 months.

Josephine E
Josephine E
1 year ago

Should pay in lieu of notice include allowances?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Josephine E

Hi Josephine,
Yes, pay in lieu should cover all of the regular salary items.

Petros Pan
Petros Pan
9 months ago

Hi, ARe bonus payments taxable?

Enny Shmurin
Admin
Enny Shmurin
9 months ago
Reply to  Petros Pan

Hello, bonuses are taxable the same as salary.

Martin W
Martin W
7 months ago

Hello,
I’ve received contradictory information related to overtime in Egypt:
During day:

  • Some sources state a total pay of 135% (salary + 35% overtime pay)
  • Other sources stat a total pay of 235% (salary + 135% overtime pay)

During night:

  • either 170% total
  • or 270% total

Thank you in advance for clarifying!

Enny Shmurin
Admin
Enny Shmurin
7 months ago
Reply to  Martin W

Hi,
The standard law on this is that employees who work more than 40 hours a week should receive overtime of 135.00% of their regular salary rate of pay during daylight hours and 170.00% of their regular salary rate of pay for work at night. However, when the work takes place on the employee’s rest day, the employer must pay double the day’s salary to the employee (and additionally the employee will be given another day to rest in lieu of the day of rest during the following week). Please note that where there is a Collective Agreement in place this could alter the % that is paid.

Martin W
Martin W
7 months ago
Reply to  Enny Shmurin

Thank you for replying!
So with a concrete example, my hourly pay is EGP200. I worked 44 hours this week.

My normal time pay is: 40*200 = 8000 EGP
My overtime pay is: 4*200*135% = 1080 EGP

Is this correct?
Thank you very much

Enny Shmurin
Admin
Enny Shmurin
7 months ago
Reply to  Martin W

This appears to be correct in a general sense, however, I highly recommend you check with your payroll team to verify your calculation and align to what is agreed within your employment contract.

Wahb
Wahb
2 months ago

is gift vouchers taxable in payroll?

Enny Shmurin
Admin
Enny Shmurin
2 months ago
Reply to  Wahb

If it’s a non monetary gift, it will be fringe benefit tax.

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Payroll and Benefits Guide in Egypt

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Payroll and Benefits Guide
in Egypt

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

Egypt
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ICS
Date Day Holiday Notes
7 Jan 2024 Sunday Coptic Christmas Day
25 Jan 2024 Thursday Revolution Day
10 Apr 2024 Wednesday Eid al-Fitr Tentative
11 Apr 2024 Thursday Eid al-Fitr Holiday Tentative
12 Apr 2024 Friday Eid al-Fitr Holiday Tentative
25 Apr 2024 Thursday Sinai Liberation Day
1 May 2024 Wednesday Labor day
6 May 2024 Monday Sham el Nessim
16 Jun 2024 Sunday Arafat Day
17 Jul 2024 Wednesday Eid al-Adha Tentative
18 Jul 2024 Thursday Eid al-Adha Holiday Tentative
19 Jul 2024 Friday Eid al-Adha Holiday Tentative
20 Jul 2024 Saturday Eid al-Adha Holiday Tentative
30 Jun 2024 Sunday June Revolution Day
8 Jul 2024 Monday Islamic New Year Tentative
23 Jul 2024 Tuesday July Revolution Day
16 Sep 2024 Monday Prophet Muhammad’s Birthday
6 Oct 2024 Sunday Armed Forces Day