South America
How to hire and pay employees in Venezuela
Helping your business expand into new markets with our Global Payroll & Employer of Record services.
How to hire and pay employees in Egypt
Slasify
Jun 21, 2025
Before Hiring in Egypt
Discover the global hiring and employment landscape in Egypt—strategically located as a bridge between Africa and the Middle East. The country's diverse talent pool, growing economy, and sectors like finance and ICT offer ample opportunities for businesses seeking to hire in a dynamic market.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Egpyt market with Slasify's global premium HR platform.
At a Glance
| Capital | Cairo |
| Currency | Egyptian Pound (EGP) |
| Payroll Cycle | Monthly |
| Minimum Wage | EGP 6,000 per month |
| Annual Leave | 21–30 days |
| Personal Income Tax | Up to 27.5% |
Personal Income Tax
| Annual Taxable Income (EGP) | Progressive Tax Rate (%) |
|---|---|
| Up to 40,000 | - |
| 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 |
Note: Taxpayers are generally entitled to an annual salary tax exemption of EGP 20,000.
Local Taxes
There are no local taxes on employment income in Egypt.
Statutory Contributions
Social security contributions are calculated based on a monthly salary floor and ceiling that are subject to an annual increment of 15% until 2027, and will increase according to inflation from 2028 onwards.
| Year | Insurance Salary Floor (EGP) | Insurance Salary Ceiling (EGP) |
|---|---|---|
| 2023 | 1,700 | 10,900 |
| 2024 | 2,000 | 12,600 |
| 2025 | 2,300 | 14,500 |
| 2026 | 2,700 | 16,700 |
| 2027 | 3,200 | 19,300 |
Social Insurance contributions are applicable to both Egyptian nationals and foreigners who work in Egypt (Executive Regulation No. 2437).
However, Health Insurance contributions only apply to Egyptian nationals in governorates that has implemented the new health insurance system. Foreigners can contribute at the same rate according to certain conditions and in the case of reciprocal treatment by their home countries.
Employer Contributions
| Contribution Rates | Note | |
|---|---|---|
| Social Insurance | 18.75% | This will increase to 21% for managers/board of directors whose names are included in the commercial register of the company. |
| Health Insurance | 4% | - |
Employee Contributions
| Contribution Rates | Note | |
|---|---|---|
| Social Insurance | 11% | - |
| Health Insurance | 1% | Contribution rate will increase by 3% to insure the employee's non-working spouse, and increase by 1% to insure each additional dependent. |
Payment of Wages
Employees are to be paid at the following frequency:
| Pay Frequency | |
|---|---|
| Salaried employee | Monthly |
| Piece rate employee | If the work duration exceeds 2 weeks, the employee shall be paid weekly. Otherwise, they can be paid after the completion of their work. |
| Other employees | As agreed on the contract, provided that it is at most once per week |
Minimum Wage
Effective May 1, 2024, the minimum wage in Egypt is set at EGP 6,000 per month.
Statutory Bonus
There are no mandatory requirements for a 13th month pay or other bonuses in Egypt.
Termination
Employees can only be dismissed due to their incompetence, upon reaching the retirement age or if there is a serious cause warranting their dismissal. Similarly, employees who resign must have an adequate and legitimate cause based on reasons related to their health, social or economic conditions.
Any act committed by the employee that warrants disciplinary action must be thoroughly investigated, and the penalty shall be meted out within 30 days of concluding such investigation. Once the employer's decision is finalized, the employee shall be notified in writing of the allegations and be given the opportunity to defend themselves in an impartial hearing.
In any case, employers dismissing their employees for serious causes must have the dismissal approved by the relevant labor court:
In the event where the employee is "forced" to resign due to the employer's fault, the termination shall be deemed equivalent to a dismissal without just cause. This happens when the employer defaults on any substantial obligations prescribed by the law, employment contract or collective agreement, or when they commit a hostile act against the employee or their family members.
When considering whether a dismissal or resignation is justified, it is important to be mindful of the following special circumstances:
| Justified dismissal | Justified resignation |
|---|---|
| Employers shall be allowed to dismiss employees who have been sentenced to a criminal or custodial penalty in an offense involving moral turpitude or the breach of honor, honesty or public morals. | Female employees can rightfully resign due to marriage, pregnancy or child-rearing, provided that the employer is notified within 3 months of the relevant event. |
Notice Period
The termination of an employment relationship is subject to the following notice period:
| Length of Service | Notice Period |
|---|---|
| Less than 10 years | 2 months |
| 10 years or more | 3 months |
During the notice period, employees shall be entitled to a full day of paid leave per week to seek new employment, provided that the employer is notified a day in advance.
The employer may exempt their employees from observing the required notice period if they voluntarily resign, with the employer being released from their obligations from the date of resignation. However, in the case of dismissals, employers who choose not to observe the required notice shall pay their employees in lieu and continue their obligations until the end of their supposed notice period
Severance Pay
If any party terminate an employment relationship without legitimate and adequate justification, they shall be subject to pay the other party a compensation equivalent to at least 2 months' wage for each year of service.
Probationary Period
Any probationary period must be specified in the employment contract and shall not exceed a period of 3 months. Employees can only be appointed for a probationary period once per employer.
Work Time Rules
Standard Working Hours
Standard working hours are subject to a maximum of 8 hours per day or 48 hours per week.
In any case, working hours, including break time, must be organized so that the period between the beginning and end of work does not exceed more than 10 hours per day. Those whose work are intermittent by nature can be exempted from this rule, provided that the period they stay at work does not exceed 12 hours per day.
Break Period
Employees cannot work for more than 5 continuous hours without break, and employees are entitled to at least an hour of break time per day. This break period shall not be counted as part of the employee's working hours unless the employee is required to stay at the workplace.
In addition to the above, female employees who are nursing their child shall be entitled to 30-minute breastfeeding breaks, twice per day, during the 24 months after childbirth. This break shall be considered as part of the employee's working hours.
Overtime
Employers may only require their employees to perform overtime to cope with unusual work exigencies or other exceptional conditions, provided that their employees consented. Actual working hours, including any overtime hours, shall not exceed 10 hours per day.
Those who are required to work overtime shall be paid at 135% of their normal rate for overtime performed during the day and 170% for overtime performed at night.
Note: Night work refers to work performed between sunset and sunrise.
Weekly Rest Days
Employees are entitled to 24 continuous hours of paid rest after every 6 consecutive days of work. Those required to work on their weekly rest day must be compensated for their work at their regular rate and be granted a compensatory day-off in lieu in the following week.
Holiday and Leave Entitlements
Public Holidays
Employees are entitled to a leave with full pay on public holidays designated by the Ministry of Manpower and Immigration. There are 18 days of public holidays in Egypt for 2025.
| Holiday | Date |
|---|---|
| Coptic Christmas Day | January 7 |
| Revolution and National Police Day | January 25 |
| Eid Al-Fitr | March 30–April 1 |
| Sham El-Nessim | April 21 |
| Sinai Liberation Day | April 25 |
| Labor Day | May 1 |
| Arafat's Day | June 5 |
| Eid Al-Adha | June 6–9 |
| Islamic New Year | June 26 |
| June 30 Revolution | June 30 |
| The July 23 Revolution Day | July 23 |
| Prophet Muhammad's Birthday | September 4 |
| Armed Forces Day | October 6 |
Employees may be required to work during their paid leave days if so required by work conditions, provided that they are paid double their usual rate on top of their wage for that day.
Annual Leave
Employees who have completed a year of service shall be entitled to the following paid annual leave:
| Length of service | Annual leave |
|---|---|
| Less than 10 years | 21 days |
| 10 years and above | 30 days |
Those who have not completed a year of service shall have their leave prorated according to the period they have worked, provided that they have at least 6 months of service.
While the dates of annual leave are usually determined by the employer, employees may take annual leave at their discretion if certain conditions are met.
| Leave dates determined by the employer | Leave dates determined by the employee |
|---|---|
| In most cases, annual leave dates are determined by the employer according to the work requirements. Employees who refuse to take their leave at the specified dates in writing shall forfeit their entitlement to receive annual leave pay as well. |
Employees have the right to determine their annual leave dates if they are sitting for an exam at any educational stage, provided that their employers are notified 15 days in advance. Employees can also take up to 6 days of annual leave for casual reason, with at most 2 days taken at a time. |
Any unused leave can be accumulated for up to 3 years, provided that the employee takes at least 15 days of leave per year, including at least 6 consecutive days. Any remaining unused leave can be cashed out in lieu.
Note: Employees who are over 50 years old shall be entitled to 30 days of paid annual leave regardless of service duration, and those who work in difficult, dangerous or hazardous conditions, or in remote areas are entitled to an additional 7 days of paid annual leave.
Sick Leave
Employees are entitled to 180 days of paid sick per year, as determined by the Social Insurance Law, provided that their sickness is proven by a competent medical authority.
| Leave duration | Sick leave pay |
|---|---|
| First 90 days | 75% of social insurance salary |
| Last 90 days | 85% of social insurance salary |
Maternity Leave
Female employees who have at least 10 months of service shall be entitled to 90 days of fully paid maternity leave, with at least 45 days to be taken as post-natal leave. Those intending to take maternity leave shall submit a medical certificate indicating the expected date of delivery.
The competent social insurance authority shall cover 75% of the employee's insured wage during their leave period, and this shall only be granted 3 times throughout the employee's service period.
Parental Leave
Female employees working in establishments with at least 50 employees shall be entitled to up to 2 years of unpaid leave to care for their child.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Pilgrimage Leave | Paid | 1 month |
For employees who have completed 5 continuous years of service to perform religious pilgrimage duty. This can only be taken once throughout the entire service period. |
Get In Touch
Slasify is a one-stop platform offering Global Payroll, Employer of Record (EOR), and HR Outsourcing functions for the remote working generation. Our proven track record with Forbes Top 100 Companies and dedication to Diversity, Equity and Inclusion (DEI) make us your ultimate payroll partner. Join us on a global HR journey, where we cater to your needs across 150+ countries and unlock HR solutions tailored to you—Book a free consultation now!