Under Labour Law No. 14 of 2025 the indefinite-term contract is the default: it applies where no written contract or term exists, or where work continues after a fixed term expires, and must be documented in Arabic (electronic contracts now recognised).
Must be written and renewable by agreement, but converts to indefinite if work continues after expiry without a new written contract or where cumulative renewals exceed 4 years (Law 14/2025).
Standard working time is 8 hrs/day / 48 hrs/week; overtime paid at +35% daytime and +70% night hours, and work on the weekly rest day earns double pay plus a compensatory day off.
Probation may not exceed 3 months and may only be imposed once with the same employer (Art. 90, Law 14/2025); during probation either party may end the contract without notice or compensation.
No statutory 13th/14th salary, though Ramadan/Eid bonuses are customary; Law 14/2025 instead mandates a periodic annual increment of at least 3% of the insurable wage.
No general statutory job-title scheme, but the written Arabic contract must state the job title and description, and regulated professions require the relevant licence or syndicate membership.
Employers contribute 18.75% of the insurable salary to social insurance (Law 148/2019); the insurable wage is capped at EGP 16,700/month (min EGP 2,700) from 1 January 2026, and the cap rises each January.
Employees contribute 11% of the capped insurable salary; salary income tax is progressive from 0% to 27.5% (top rate above EGP 1.2M/yr) with an annual personal exemption of EGP 20,000.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Egypt's Social Insurance and Universal Pension Law No. 148 of 2019 covers employees through a single contribution of 29.75% of the capped insurable salary (employer 18.75%, employee 11%), funding:
Work-injury cover is a branch of the mandatory social insurance system (Law 148/2019) funded from the employer's contribution: it pays medical treatment, full wage compensation during treatment-related absence, and disability or survivors' pensions for permanent injury or death, so no separate private workers' compensation policy is required.
There is no general statutory severance for indefinite-term employees lawfully terminated with notice under Labour Law No. 14 of 2025. If an employer ends a fixed-term contract early, the employee is entitled to a gratuity of one month's total wage per year of service (in addition to accrued rights). Unjustified dismissal is compensated by the labour court at no less than two months' comprehensive wage per year of service, plus payment in lieu of any unworked notice.
A 13th-month salary is not legally required in Egypt. Many employers pay discretionary Ramadan, Eid or performance bonuses, and profit-sharing applies in some companies. Law 14/2025 does, however, oblige employers to grant an annual increment of at least 3% of the insurable wage.
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), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. 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).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.