Egypt at a glance
Taxes in Egypt
Employer Contributions
| Contribution | Rate |
|---|---|
| Social security contributions | 18.75% |
| Employment tax | 0% |
| Contribution | Rate |
|---|---|
| Social security contributions | 18.75% |
| Employment tax | 0% |
| Contribution | Rate |
|---|---|
| Social security contributions | 11% |
| Income tax | 0% – 27.5% (progressive) |
| Annual Gross Income (EGP) | Tax Rate |
|---|---|
| 1 – 40,000 | 0% |
| 40,001 – 55,000 | 10% |
| 55,001 – 70,000 | 15% |
| 70,001 – 200,000 | 20% |
| 200,001 – 400,000 | 22.5% |
| 400,001 – 1,200,000 | 25% |
| Over 1,200,000 | 27.5% |
Employer of Record in Egypt
What Is an Employer of Record?
An Employer of Record is the legal employer of your worker in Egypt. Remote& assumes all compliance responsibilities under Egyptian employment law — payroll, social insurance contributions, statutory benefits, employment contracts, and tax filings — giving you a compliant employment structure without requiring you to establish an Egyptian legal entity.
How Remote& EOR Works
| Party | Role |
|---|---|
| Your Company | Recruits the worker, assigns tasks, manages performance and day-to-day work |
| Remote& | Signs the employment contract, processes payroll, files social insurance contributions, manages statutory benefits and leave |
| Employee | Fulfills their role for your company under an Egyptian-law-compliant contract |
Ask Remi:
"Hire a Backend Engineer in Cairo — 30,000 EGP/month, starting in 6 weeks" Remi handles contract generation, social insurance registration, payroll configuration, and statutory benefits enrollment — all in one conversation.
Benefits in Egypt
Public Health Insurance Public health insurance is mandatory in Egypt for all Egyptian citizens. Premiums are shared between employers, employees, and, where applicable, family members.
Social Security Egypt's social security system provides pensions, disability benefits, healthcare access, and other assistance programs. Contributions are mandatory for both employer and employee.
- Private medical insurance
- Performance and retention bonuses
- Meal allowance and food vouchers
- Transportation allowance or company transport
- Mobile phone and internet allowance
- Flexible or remote working arrangements
- Training and professional development support
- Wellness programs
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual Leave | 15 days (after 1 year); 21 days (2–10 years); 30 days (10+ years); 45 days from day one for employees with disabilities |
| Sick Leave | 180 days paid by social security — 75% of salary for first 90 days, 85% for the following 90 days |
| Maternity Leave | 4 months |
| Paternity Leave | 1 day per child (up to 3 children) |
| Childcare Leave | 1 day per child, up to 3 children (employers with 50+ employees only) |
| Pilgrimage Leave | 1 month paid, once per employment relationship, after 5 years' continuous service |
Employment conditions
Working Hours
Standard working hours are 48 per week (8 hours per day), excluding rest breaks. Overtime applies to any hours worked beyond this threshold. Total daily working time including overtime cannot exceed 10 hours, and employees may not remain at the workplace for more than 12 hours in any single day including rest periods.
Probation
Probation periods are permitted and should be defined in the employment contract. Either party may terminate during probation without compensation obligations.
Payments
End of employment in Egypt
Employment in Egypt can end through resignation, mutual agreement, termination during probation, or employer-initiated termination for cause. Resignation requires proper notice; failure to serve notice may trigger a compensation obligation.
Employer-initiated termination must be justified and follow proper legal procedures. Termination without valid cause is treated as unfair dismissal and may require compensation of at least two months' salary per year of service.
In all termination scenarios, employees are entitled to their final dues: outstanding wages, and payment for any unused annual leave.
Frequently asked questions
There are four approaches to employing someone in Egypt: running payroll from your home-country entity (suitable only for short-term arrangements), engaging independent contractors (appropriate for genuine project-based work), registering a local Egyptian entity (significant ongoing administrative burden), or partnering with Remote& as your Employer of Record. The EOR route is the most efficient path for international companies hiring in Egypt.