How to hire and pay EMPLOYEES IN

Egypt

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Before hiring

EMPLOYEES IN
Egypt

Before hiring employees in Egypt, there are a few important things you’ll need to know. Firstly, employees aren’t granted paid vacation leave until they’ve completed six months of service with an employer. 

Employers should also know that the notice period in Egypt depends on the length of the employee's service. If an employee has less than 10 years of service, two months notice is required. If an employee has been with a company for more than 10 years, three months notice is required. 

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Egypt below.

At a Glance

CURRENCY

EGP

OFFICIAL LANGUAGE

MODERN STANDARD ARABIC

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

16

(based on region;
see here
)

EMPLOYER TAXES

27%

of gross salary

13th / 14th SALARY

N/A

Good to know

  • If imposed, non-compete agreements in Egypt are usually for a period of one year. There is no statutory provision requiring an employer to pay any financial compensation to the employee for maintaining a non-compete clause.
  • Employees do not get paid vacation leave until they’ve completed six months of service. For emergencies, employees are entitled to casual leave, which must not exceed six days per year and is deducted from their annual leave.
  • To be eligible for paid maternity leave, an employee must have worked with their employer for at least the last ten months.

Employment in

Egypt

Working hours and overtime

Employees in Egypt work eight hours per day, 48 hours per week. 

Overtime work is paid at the rate of 135% of an employee’s regular pay during daytime hours.

If working on a rest day, an employee is entitled to 200% of their regular pay and an additional day of rest in lieu of the working day. If working on an official holiday, the employee is entitled to 300% of their regular pay.

Employment contracts
Probationary period

The probationary period in Egypt is three months. 

Pensions
Notice period

The notice period in Egypt depends on the length of the employee's service. If an employee has less than 10 years of service, two months notice is required. If an employee has been with a company for more than 10 years, three months notice is required. 

IP protection and non-compete agreements

Non-compete agreements must be reasonable and limited in their geographic scope and duration. Such agreements in Egypt are typically for a period of one year.

There is no statutory provision requiring the employer to pay any financial compensation to the employee for maintaining a non-compete clause.

Employment cost calculator

Holidays

07 Jan

Coptic Christmas Day

30 Jun

30 June Revolution Day

25 Jan

25 January Revolution Day

19 Jul

Arafat Day

25 Apr

Sinai Liberation Day

20 Jul

Eid al-Adha

01 May

Labour Day

21 Jul

Eid al-Adha Holiday

02 May

Coptic Easter Sunday

23 Jul

Revolution Day

03 May

Sham el Nessim

09 Aug

Islamic New Year

13 May

Eid al-Fitr

06 Oct

Armed Forces Day

14 May

Eid al-Fitr Holiday

18 Oct

Prophet Muhammad's Birthday

07 Jan

Coptic Christmas Day

25 Jan

25 January Revolution Day

25 Apr

Sinai Liberation Day

01 May

Labour Day

02 May

Coptic Easter Sunday

03 May

Sham el Nessim

13 May

Eid al-Fitr

14 May

Eid al-Fitr Holiday

30 Jun

30 June Revolution Day

19 Jul

Arafat Day

20 Jul

Eid al-Adha

21 Jul

Eid al-Adha Holiday

23 Jul

Revolution Day

09 Aug

Islamic New Year

Employer tax

Employers in Egypt can pay up to 27% in social contributions. This includes:

  • Social Security (capped at 1,670 EGP): 26%
  • Social Security variable (capped at 4,040 EGP): 24%
  • Unemployment insurance: 1%

Individual tax

Employees in Egypt pay 0% to 25% in taxes depending on their income bracket. Employees also pay 14% in social security contributions.

Termination of employment

In Egypt, it’s difficult for employers to terminate an employment contract before the end of the contract. This is considered wrongful termination unless any of the reasons below are met:

  • A “fundamental breach” of contract (The employer does not pay any compensation)
  • Poor performance that is documented (The employer does not pay any compensation)
  • Redundancy (The employer pays a reduced compensation to the employee)

For termination without a justified cause, there are two scenarios:

  • Fixed-term contracts: Employers must pay the employee an amount equal to what they would have received if they would have fulfilled their employment contract
  • Indefinite contracts: An amount no less than two months' salary for each year that the employee was with the employer

Start hiring employees in

Egypt

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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wherever they work in the world.

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