Country Payroll Guide Egypt

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Key Facts

Capital
Cairo
Date format
dd/mm/yyyy
Currency
Egyptian Pound (EGP)
VAT
the standard rate is 14%

Contributions

Employers

Social Security Insurance
Social Security Insurance - 18.75%
Unemployment
Unemployment - 1%
Total Employment Cost
Total Employment Cost - 19.75%

Employees

Social Security Insurance
Social Security Insurance - 11%
Total Employee Cost
Total Employee Cost - 11%

Minimum Wage

Minimum Wage
The minimum wage in Egypt is 2400 EGP per month.

Payroll

Payroll Cycle
Monthly
13th Salary

There is no legislation relating to a 13th salary.

Income Tax

Employee Income Tax (1)
0 - 15,000 EGP - 0%
Employee Income Tax (2)
15,000 - 30,000 EGP - 2.5%
Employee Income Tax (3)
30,000 - 45,000 EGP - 10%
Employee Income Tax (4)
45,000 - 60,000 EGP - 15%
Employee Income Tax (5)
60,000 - 200,000 EGP - 20%
Employee Income Tax (6)
200,000 - 400,000 EGP - 22.5%
Employee Income Tax (7)
400,000 EGP and over - 25%

Working Hours

General Working Hours

An employee’s maximum working hours per day are 8 hours or 48 hours per week in case of a six-day work week. Work hours must be regulated so the period between the beginning and the end of the working hours doesn’t exceed 10 hours per day.

Overtime

The minimum premiums are set at 35% of the normal pay for overtime work during daylight, 70% for nightshifts and 100% for work performed on days off and holidays.

Leave

Paid Time Off

In Egypt, annual leave is 21 days. Workers are eligable for annual leave after 6 months of service. Those employed for over 10 years have an annual leave of 30 days. Those over 50 are entitled to 30 days of leave.

Public Holidays

14 days.

Sick Days

An employee is entitled to sick leave based on the report from concerned medical authority. Any employee with a proven record of sickness is entitled to a paid sick leave at the rate of 75% of their salary for 90 days. This increases to 85% for the following 90 days. Paid sick leave can last up to 180 days.

Maternity Leave

Female employees who have contributed to social insurance for 10 months are entitled to up to three months maternity leave per child, up to three children, and are entitled to 75% of the last salary. After returning, the woman is entitled to two half-hour nursing breaks or a combined hour each day for 24 months after the date of birth. Workplaces with over 100 employees must provide an in-house nursery or alternatively place a child in nursery care until the age of schooling.

Paternity Leave

There is no national paternity leave.

Parental Leave

Companies with over 50 employees must allow a mother 24 months of unpaid leave per child.

Termination

Termination Process

An employer is not entitled to terminate employment contract unless employee breaches the contract by committing a “grave fault”which includes:

  • Assumption of false identity or submission of forged documents
  • Continuous violation of safety instructions
  • Absence from work for more than 20 non-consecutive or 10 consecutive days in a given one year
  • Disclosure of the employer’s secrets causing material loss
  • Competition with the employer in the same line of work
  • Intoxicated state during working hours; Assault of the employer, general manager or any of the superiors
  • Professional incompetence Termination for a definite employment contract without a justified cause

The employer must pay the employee what they would have received if they would have fulfilled the complete term of their employment contract. Termination of employment of an indefinite contact without a justified clause: Employer is obligated to pay compensation of no less than 2 month’s salary for each year that the employee served. In the case of unfair dismissal, compensation shall be agreed upon, however, cannot be less than 2 months’ salaries.

Notice Period

The notice period is dependant on the length of the employee’s service:

  • Less than 10 years: 2 months’ notice.
  • More than 10 years: 3 months’ notice.
Severance Pay

Severance payment is not mandatory in Egypt if it is not included in the initial contract.

Probation Period

The probation period can last up to 3months.

Visa

Employment Visa

Foreign employees are not permitted to work in Egypt unless Residency and Work Permits are obtained.