How to hire and pay employees in Egypt

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Egypt

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.

Labor laws 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

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.

Calculate costs to hire internationally

Benefits and leave in

Egypt

Vacation time

Employees in Egypt are entitled to 21 days of paid vacation, but only after they have completed six months of service.

If the employee has been employed for over 10 years, annual leave is 30 days. Employees over the age of 50 are entitled to 30 days of leave.

Sick leave

Employees in Egypt are entitled to up to six months of paid sick leave. They must provide a certificate of sickness to avail this leave.

  • For the first 90 days of sick leave, employees are paid 75% of their salary
  • For the following 90 days, employees are paid 85% of their salary

Employees also have the option of converting their annual leave days to sick leave.

Parental leave

Employees who have been working for the same employer for at least 10 months are entitled to up to three months’ fully paid maternity leave.

Employers in Egypt are not required to offer paternity leave.

Holidays

View a list of recognized public holidays in Egypt here.

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 in

Egypt

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
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. 

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.

Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While Oyster strives to provide current and accurate information, Oyster makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.

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