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Egypt

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Cairo
Currency
Egyptian Pound (EGP)
Date Format
dd/mm/yyyy
Fiscal Year
1 July - 30 June
Payroll Frequency
Monthly
Employer Taxes
19.75%- 20.75%

Contributions

Employer

Employer Payroll Contributions

18.75% (Minimum taxable wages is 1,400 EGP and maximum is 9,400 EGP) Social Security
1.00% (valid until August 2021 and applies to employees with a net salary of 2,000 EGP and over) COVID-19 Relief
1.00% Unemployment
19.75%- 20.75% Total Employment Cost

Employee

Employee Payroll Contributions

11.00% (Minimum taxable wages is 1,400 EGP and maximum is 9,400 EGP) Social Security
11.00% Total Employee Cost

Employee Income Tax

0.00% (Tax Credit not applied) Up to 15,000 EGP
2.50% 15,001 EGP – 30,000 EGP
10.00% (Tax Credit of 85%) 30,001 EGP – 45,000 EGP
15.00% (Tax Credit of 45%) 45,001 EGP – 60,000 EGP
20.00% (Tax Credit of 75%) 60,001 EGP – 200,000 EGP
22.50% (Tax Credit not applied) 200,001 EGP – 400,000 EGP
25.00% Over 400,000 EGP

Minimum Wage

General

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

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 a week.

Overtime

All working hours above the standard working week are overtime and regulated by the employment contract/collective agreements.

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.

Working Week

Sunday–Thursday

 

Leave

Paid Time Off

In Egypt, employees are entitled to 21 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.

Public Holidays

There are 16 public holidays.

Sick Days

An employee is entitled to up to 6 months of paid sick leave and 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 and 45 days following the birth of a baby.

Employees are entitled to take two 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 2 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 2 days per leave. Casual leave counts as part of annual leave.
 

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.

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 1 to 3 months until the applicant can enter Egypt. It may take a further 2 to 4 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%

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