☑️ The Basics

Currency: Egyptian pound (Rate)

Public Holidays: Up to 16 public holidays (see here)

Employer Taxes: 27% of gross salary

Official Language: Modern Standard Arabic

Payroll frequency: Monthly

Three things to know about employing in Egypt

1. If imposed, non-compete agreements in Egypt are usually for a period of one year. There is no statutory provision requiring the employer to pay any financial compensation to the employee for maintaining a noncompete clause.
2. Employees do not get paid vacation leave until they have completed six months of service. For emergencies, employees are entitled to casual leave, which must not exceed six days per year and is deducted from their annual leave.
3. To be eligible for paid maternity leave, an employee must have worked with their employer for at least the last ten months.

Employment in Egypt

Notice Period

The notice period depends on the length of the employee's service:

• Less than 10 years' service: two months
• More than 10 years' service: three months

Termination & Severance

It is difficult for employers to terminate an employment contract before the end of the contract. This is considered wrongful termination unless any of the reasons below are met:

• A “fundamental breach” of contract. (employer does not pay any compensation.)
• Poor performance that is documented. (employer does not pay any compensation)
• Redundancy (employer pays a reduced compensation to the employee)

For termination without a justified cause, there are two scenarios:

• Fixed-term contracts: employers must pay the employee an amount equal to what they would have received if they would have fulfilled their employment contract
• Indefinite contracts: an amount no less than two months' salary for each year that the employee served

Probationary period

Three months

Minimum Wage

2,000 EGP per month

IP protection and non-compete agreements

Non-compete agreements must be reasonable and limited in its geographic scope and duration. Such agreements in Egypt are typically for a period of one year.

There is no statutory provision requiring the employer to pay any financial compensation to the employee for maintaining a noncompete clause.

Working Hours

Eight hours per day, 48 hours per week.

Overtime

Overtime work is paid at the rate of 135% of the normal pay during daytime hours.

If working on a rest day, the employee is entitled to 200% of their normal pay (and an additional day of rest in lieu of the working day). If working on an official holiday, the employee is entitled to 300% their normal pay.

Paid Holidays

Employees are entitled to 21 days of paid vacation, but only after they have completed six months of service.

If the employee has been employed for over 10 years, annual leave is 30 days. Employees over the age of 50 are entitled to 30 days of leave.

Sick pay and time off

Employees are entitled to up to six months of paid sick leave. They must provide a certificate of sickness to avail this leave.

• For the first 90 days of sick leave, they get 75% of their salary
• For the next 90 days, they get 85% of their salary

Employees also have the option of converting their annual leave days to sick leave.

Parental leave

Employees who have been working for the same employer for at least 10 months are entitled to up to three months’ fully paid maternity leave.

Employers are not required to offer paternity leave.

Taxes in Egypt

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For access please email [email protected].

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Employees

Social Security (14%)

Income tax

• From 0 to 15,000: 0
• 15,000 to 30,000: 2.5%
• 30,000 to 45,000: 10%
• 45,000 to 60,000: 15%
• 60,000 to 200,000: 20%
• 200,000 to 400,000: 22.5%
• More than 400,000: 25%

Employers

Total social contributions (27%)

• Social Security (capped at 1,670 EGP): 26%
• Social Security variable (capped at 4,040 EGP): 24%
• Unemployment insurance: 1%

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