Egypt gives you one of the region's deepest talent pools at a competitive cost, but employing there means meeting real obligations: social insurance, progressive income tax withheld at source, statutory leave, and labour-law rules on hours, notice, and termination that favour the employee. This guide lays out the numbers and the rules an employer needs, then shows the fastest compliant way to actually put someone on payroll.
What this guide covers
01 / EMPLOYER COSTEmployer costs and contributions
The headline cost of an Egyptian hire is gross salary plus social insurance. Contributions are shared between employer and employee and are calculated on an insured wage that has a floor and a cap set by the authorities, not on the full salary. That detail matters: for higher earners, the effective employer add-on is often lower than the headline percentage because the cap limits the base.
| Contribution | Employer | Employee |
|---|---|---|
| Social insurance (pension, disability, sickness, work injury) | ~18.75% of insured wage | ~11% of insured wage |
| Fixed statutory contributions (training, emergency, and similar funds) | Small fixed monthly amounts | Minor or none |
Budget roughly gross salary plus around 19% of the insured wage as your total employer cost, then confirm the current insured-wage floor and cap, which are revised periodically. On the full salary of a well-paid engineer, the effective rate is usually meaningfully below 18.75% because contributions stop at the cap.
02 / INCOME TAXIncome tax
Personal income tax is progressive and withheld monthly by the employer. There is a tax-exempt band and a personal exemption, then rising brackets to a top marginal rate of 27.5%. The table below is illustrative of the current structure; brackets and the exemption are adjusted from time to time, so always run payroll on the figures in force for the year.
| Annual taxable income (EGP) | Marginal rate |
|---|---|
| Up to the exempt threshold | 0% |
| Next band | 10% |
| Next band | 15% |
| Middle band | 20% |
| Upper-middle band | 22.5% to 25% |
| Highest incomes | 27.5% |
Because the exact thresholds shift, treat this as the shape of the system rather than a payroll table. A local accountant or your Employer of Record applies the current brackets, the personal exemption, and any allowances automatically.
03 / HOURSWorking hours and overtime
Under the labour law, standard working time is up to 8 hours a day and 48 hours a week, though a 40-hour, five-day week (Sunday to Thursday) is common in office and technology roles. Overtime is permitted within limits and is paid at a premium over the normal hourly rate, higher for night hours and rest days. Employees are entitled to daily rest breaks and at least one full rest day per week.
04 / LEAVELeave and time off
| Type | Entitlement |
|---|---|
| Annual leave | 21 days paid per year after the first year of service; rises to 30 days after 10 years of service or age 50. A reduced entitlement typically accrues in the first year. |
| Public holidays | Official paid public holidays through the year (both national and religious), in addition to annual leave. |
| Sick leave | Extended sick leave supported through social insurance, paid at a percentage of the insured wage that rises with duration, subject to medical certification and limits. |
| Maternity leave | 90 days of paid maternity leave, available a limited number of times over the course of service, subject to a qualifying insurance period. |
| Other leave | Provisions exist for pilgrimage and certain personal circumstances. Paternity leave is not broadly mandated by statute, so it is often handled as a company benefit. |
05 / PROBATIONProbation and notice
A probation period of up to three months is permitted, and an employee may only be placed on probation once with the same employer. For open-ended contracts, statutory notice is generally around two months for employees with less than ten years of service and three months beyond that. Fixed-term contracts run to their end date unless the contract or law provides otherwise.
06 / TERMINATIONTermination and end of service
Egyptian labour law leans protective. An open-ended contract cannot be ended at will: termination generally needs a valid, documented reason, correct notice, and adherence to process. Arbitrary or unjustified dismissal exposes the employer to compensation, commonly assessed by a labour court in terms of months of pay per year of service. Fixed-term contracts end naturally at term, and renewing them repeatedly can, over time, be treated as an open-ended relationship. Because the downside of getting this wrong is a labour-court claim, termination is the step where local guidance pays for itself.
07 / PAYPay, raises, and bonuses
Salaries are paid monthly in Egyptian pounds. The law provides for a statutory annual periodic increase tied to the social-insurance wage, so build a yearly raise into your planning. A 13th-month salary is not a legal requirement, but bonuses are a common and expected part of competitive packages, especially for in-demand technical talent. Benefits such as private medical cover, transport, and meal allowances are widely used to attract and keep people.
Hire in Egypt without opening an entity
You do not need a company, a tax card, or a payroll department in Egypt to hire well. RowBranch is the registered local employer and is physically on the ground: we run compliant employment, payroll, income tax, and social insurance, and we handle the part software cannot, the workspace, the equipment in hand, benefits, and team events. You choose the person. We employ and care for them, under one monthly statement.
See how it worksThe choice comes down to scale and speed. Opening your own entity makes sense for a large, permanent operation where you want full control and are ready for the standing overhead of being an Egyptian employer, our guide to setting up a company in Egypt walks that path. For one hire or a growing team, an Employer of Record gives you a compliant employee and a real on-the-ground presence in days, not months, and lets you graduate to your own entity later once the numbers justify it.
08 / ANSWERSFrequently asked questions
How much does it cost an employer to hire in Egypt?
On top of gross salary, the main employer cost is social insurance, around 18.75 percent of the employee's insured wage, plus small fixed statutory contributions. Because contributions are calculated on a capped insured wage rather than the full salary, the effective add-on for higher salaries is often lower than the headline rate suggests. Confirm the current insured-wage floor and cap, which are updated periodically.
What is the minimum wage in Egypt?
The national minimum wage for private-sector employees was raised to EGP 7,000 per month. Minimum wage levels are reviewed and increased periodically, so confirm the figure in force when you hire.
What is the income tax rate in Egypt?
Personal income tax is progressive, from 0 percent on a tax-exempt band up to a top marginal rate of 27.5 percent on the highest incomes. The employer withholds tax monthly from salary. Brackets and the personal exemption are adjusted from time to time, so use current-year figures for payroll.
How much annual leave do employees get in Egypt?
The statutory minimum is 21 days of paid annual leave per year after the first year of service, rising to 30 days for employees with more than ten years of service or aged over 50. Employees in their first year typically accrue a reduced entitlement.
Do I need an entity to employ someone in Egypt?
No. You can employ someone in Egypt through an Employer of Record, which is already the registered local employer. Your hire joins a compliant payroll with social insurance and correct tax withholding, you direct their work, and you never open a company or file locally. It is the fastest compliant route for a small or growing team.