Egypt is considered a transcontinental country as it spans the northeast corner of Africa and southwest corner of Asia via the Sinai Peninsula. It’s bordered by Sudan, Libya, Israel, the Gaza Strip of Palestine, the Mediterranean Sea, and the Red Sea. Egypt has one of the longest documented histories of any country, and is now considered as a regional power in North Africa and the Middle East.
The minimum wage in Egypt is EGP 2,400 per month. Standard work hours are 8 hours per day and 40 hours per week. Any work done past 40 hours per week is considered overtime and is paid at 135% of the normal salary, and 170% of the regular salary if worked at night.
Pregnant employees who have worked at their company for at least 10 months are entitled to 3 months of paid maternity leave paid at 75% of the salary. Mothers can also take up to 2 years of unpaid leave for each child.
Employees in Egypt can receive 180 days of paid sick leave each year, which is paid at 75% of the regular salary for the first 90 days and then at 80% for the next 90 days.
There are 14 public holidays in Egypt, and employees who have worked 6 months at their company are also entitled to 21 days of paid time off each year. Employees who are over 50 or have worked at the company for 10+ years are entitled to 30 days. Employees can also qualify for adoption leave, casual leave, or pilgrimage leave once in their career.
Employment contracts can only be terminated if they run past the contract term, or if the dismissal is with just cause is (such as misconduct, negligence, fraud, or other work-related offenses). An employee who is terminated unfairly will be entitled to severance pay.
Notice periods depend on the employee’s length of time at the company, and range from 2 months to 3 months for employees who have been at a company for 10+ years.
Severance payments are only mandatory in cases of terminations without just cause. In such cases the employee is entitled to 2 months of pay for every year worked at the company. Employees with definite term contracts that are terminated unfairly before they expire are entitled to receive the remaining pay stipulated in the contract.
★ 18.75% - Social Security
★ 1% - Unemployment
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.