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Africa

Egypt

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Employer of Record (EOR) in Egypt

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Egypt Introduction

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.

Paid Leave and Statutory Leave

Parental Leave

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.

Sick Leave

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.

Paid Leave

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.

Wage Requirements and Working Hours

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.

Termination Process

Process

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 Period

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 Pay

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.

Additional Information

N/A

OVERVIEW
Language(s):
Arabic
Currency:
Egyptian Pound (EGP)
Capital City:
Cairo
Population:
106.4 Million
Cost of Living Rank:
126th
VAT (Valued Added Tax):
14%
Employer TaxES
19.75%
(estimated)

★  18.75% - Social Security

★  1% - Unemployment

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 150+ countries
How Remofirst employs in Egypt

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Egypt get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Egypt are paid on time in Egyptian Pound (EGP). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

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.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Egypt, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.