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Overview
Egyptian Pound (EGP)
CURRENCY
Cairo
CAPITAL
monthly
PAYROLL FRECUENCY
16
PUBLIC HOLIDAYS
19.75 to 20.75
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Egypt
Employer
Company Payroll contributions
18.75% - 18.75%
Social Security (the minimum is 1,400 EGP and the maximum is 9,400 EGP)
- 1%
COVID-19 Relief(applies to employees with a salary of 2,000 EGP and over)
1% - 1%
Unemployment
19.75% - 20.75%
Total Employment Cost
Employee
Employee Payroll Contributions
0%- 11.00%
Social Security (the minimum is 1,400 EGP and the maximum is 9,400 EGP)
0% - 11%
Total Employee Cost
Employee Income Tax in Egypt
Employment Income Taxes
0%
Up to 15,000 EGP (The Tax Credit is not applied)
2.5%
15,001 EGP – 30,000 EGP
10%
30,001 EGP – 45,000 EGP (TC of 85%)
15%
45,001 EGP – 60,000 EGP (TC of 45%)
20%
60,001 EGP – 200,000 EGP (TC of 75%)
22.5%
200,001 EGP – 400,000 EGP (TC not applied)
25%
Over 400,000 EGP
Payroll Contributions in Egypt
Payroll Cycle
The payroll cycle in Egypt is monthly and companies must pay their employees before the 5th of each month. Therefore, this and other payments can be made through global payroll outsourcing in the country.
13th Salary
Labour law in Egypt does not oblige companies to make this payment.
Employee Benefit in Egypt
Visa and work permit in Egypt
A foreigner who wants to work in Egypt must apply for a work permit before being able to work. In this case, the Ministry of Manpower in Egypt is the entity that grants this permit, which is valid for 1 year. Also, if you hire contractor management services, before applying for the permit, you must prove that there are no local citizens who can do the same job.
Also, after having received the approval of the ministry, it will have to train 2 Egyptian employees for the same job. In the same way, the process until the worker can enter the country can take between 1 and 3 months. Likewise, it can take between 2 and 4 months until the authority issues the permit, for this the Employer of record in Egypt is useful.
On the other hand, the country offers several types of visas, among which are the following:
- Work visa. In this case, after obtaining your work permit, the visa of a foreigner becomes this.
- Temporary/tourist visa. This visa is received by people upon arrival at an airport in Egypt and lasts for 30 days, which can be renewed. In addition, this visa is also valid for those who are going to do temporary work.
- Ordinary visa. With this visa, the spouse of an employee can obtain a residence permit valid for 3 to 5 years. However, it will last the same as the work permit of the spouse.
- Special visa. This visa is for expatriates born in Egypt before May 26, 1952, and is valid for 10 renewable years. They can also apply if they have lived in the country for more than 20 years from the mentioned date.
VAT in Egypt
In Egypt, this tax is 14%.
Working Hours in Egypt
General
Workers must work 8 hours a day and 40 hours a week.
Overtime
The employment agreement and the collective agreement define overtime. Thus, the extra hours are those that exceed the ordinary hours of the week. Thus, workers who work more than 40 hours a week are entitled to receive 135% of their regular salary.
However, overtime at night can be paid through an Employer of record in Egypt and consists of 170% of the normal salary.
Working Week
Sunday to Thursday.
Employee Termination in Egypt
Termination Process
To know this process in detail, a Professional Employment Organization is the best help you can have. In this regard, termination is based on the type of contract and the reason for termination, as well as collective agreements and contracts. For the rest, the employer who wishes to dismiss an employee must appear before the Ministry of Manpower and Migration.
Thus, the committee of this ministry will have 15 days to decide on the case and make a decision on it. However, even though the decision allows the employer to fire the worker, the worker may challenge the decision.
Notice Period
Again, that period also depends on collective agreements and conventions, as well as the length of the service of the employee. In this way, if the worker has less than 10 years in the company, the notice must be 2 months. On the other hand, if the service of the worker exceeds 10 years, the period increases to 3 months.
Severance Pay
There is no severance pay in Egypt unless the dismissal is unjustified or the employer provides it voluntarily. Hence, PEO services in Egypt can help you perform these calculations or determine the reasons for dismissal.
Probation Period
The trial period is established in the employment contract, but, by law, it may not exceed three months.
Employee Leaves in Egypt
Paid Time Offs
Workers who have at least 6 months of service are entitled to receive this leave that consists of 21 days a year. In addition, workers with ten years of work in the company or who are over 50 years of age, have the right to 30 days of annual vacation. Also, the Employer of record in Egypt does all these calculations for you.
Public Holidays
There are 16 national holidays throughout the year.
Vacation Holidays
There are 21 vacation holidays throughout the year.
Sick Days
Employees are entitled to 6 months of sick leave but must provide a medical certificate. Similarly, payroll outsourcing allows you to pay your employees this benefit, which is 75% of their salary for the first 90 days. This number then increases to 85% of the normal rate of pay for the next 90 days.
Paternity Leave
The Labour Law in Egypt does not provide for paternity leave.
Paternal Leave
Companies with more than 50 employees must grant a 2-year unpaid leave for each child. However, if the company has at least 50 employees, female workers can receive 2 years of leave to care for their children. However, you will only be able to use this permit twice during your entire service with the company.
Other Leave
Under the terms of the employment agreement/collective agreement, the employer may grant additional leaves, by the agreement of the parties concerned. You can learn about this license in detail with an Employer of record in Egypt, but it consists of the following:
- Casual leave. In this case, the employee can take 6 days off per year without the need to indicate a specific reason for it. However, you can only take 2 days of leave at a time and they count as part of your annual leave.
Maternity Leave in Egypt
Female employees are entitled to receive 90 days of maternity leave before delivery and 45 days after that. However, only workers with more than 10 months may receive this paid leave. In addition, female employees are entitled to receive 2 periods of maternity leave during their entire service.
In the same way, once she returns to work, the employee will be able to take 2 breaks of half an hour each to breastfeed. They may also choose to take a full hour a day for that purpose. In the same way, they will be able to do this up to two years after the date of birth.
There are 90 leave throughout the year.