Egypt's growing tech sector and skilled workforce present incredible opportunities, but navigating local employment laws and compliance requirements can feel overwhelming. This guide breaks down everything you need to know to hire confidently and compliantly in one of the Middle East's most dynamic markets.
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From Cairo's bustling tech hubs to Alexandria's emerging talent pools, Egypt offers access to in-demand skills like software development and AI engineering at competitive rates. Understanding the local market dynamics—including a 20% tax rate and Arabic language requirements—is key to successful expansion.
Egyptian employment law covers everything from minimum wage requirements to complex social insurance contributions, and getting it wrong can be costly. Here's your practical roadmap to payroll, benefits, hiring procedures, and compliance requirements that will keep your team protected and your business running smoothly.
Egypt's minimum wage is set at EGP 3,500 per month for full-time employees, effective as of 2025 under the new Labour Law No. 14 of 2025. This applies to both private sector and government employees.
Employment Type | Minimum Wage (EGP/month) | Effective Date |
---|---|---|
Full-time employees | 3,500 | January 1, 2025 |
Part-time employees | Pro-rated based on hours | January 1, 2025 |
Note: Minimum wage rates are subject to annual review by the Egyptian government based on economic conditions.
Note: Employers must adhere to Egyptian Labour Law requirements regarding pay frequency and must pay salaries by the end of each month.
Egyptian residents are taxed on their worldwide income, while non-residents pay tax only on Egyptian-source income.
Income Bracket (EGP annually) | Tax Rate |
---|---|
Up to 15,000 | 0% |
15,001 to 30,000 | 2.5% |
30,001 to 45,000 | 10% |
45,001 to 60,000 | 15% |
60,001 to 200,000 | 20% |
200,001 to 400,000 | 22.5% |
Over 400,000 | 25% |
Individuals are considered Egyptian tax residents if they:
Egyptian employers must contribute to various social insurance schemes and funds. These contributions are calculated as percentages of the employee's gross salary.
Contribution Type | Employer Rate | Employee Rate | Total |
---|---|---|---|
Social Insurance | 18.75% | 11% | 29.75% |
Health Insurance | 4% | 1% | 5% |
Work Injury Insurance | 2% | 0% | 2% |
Unemployment Insurance | 2% | 1% | 3% |
Total Employer Cost | 26.75% | 13% | 39.75% |
Note: Contribution rates may vary based on industry risk classification and company size.
The standard work schedule in Egypt is 8 hours per day, 48 hours per week, typically Monday through Saturday. During Ramadan, working hours are reduced to 6 hours per day for Muslim employees.
Special Considerations:
Egyptian labour law requires certain bonus payments:
Leave Type | Duration | Paid? | Funding |
---|---|---|---|
Annual Vacation | 21-30 days/year | Yes | Employer |
Sick Leave | Up to 180 days | Yes (full/partial) | Employer |
Maternity Leave | 90 days | Yes | Employer |
Paternity Leave | 3 days | Yes | Employer |
Bereavement | 1-3 days | Yes | Employer |
Religious Leave | Varies | Partially | Employer |
Termination With Cause:
Termination Without Cause:
Mutual Agreement:
Notice periods are based on the employee's length of service and salary payment frequency.
Length of Employment | Notice Period |
---|---|
Less than 3 months | None |
3 months to 1 year | 1 month |
1 to 5 years | 2 months |
5 to 10 years | 3 months |
Over 10 years | 3 months |
End of Service Gratuity:
Example Calculation: Employee with 8 years of service earning EGP 10,000/month:
Employers must provide final settlement within 7 days of termination, including:
Egyptian law prohibits termination based on:
Violations can result in reinstatement orders and compensation payments.
Egypt observes both fixed and variable religious holidays throughout the year.
Holiday | Date | Type |
---|---|---|
New Year's Day | January 1 | Fixed |
Revolution Day | January 25 | Fixed |
Sinai Liberation Day | April 25 | Fixed |
Labour Day | May 1 | Fixed |
Revolution Day | July 23 | Fixed |
Eid al-Fitr | Variable (3 days) | Religious |
Arafat Day | Variable | Religious |
Eid al-Adha | Variable (4 days) | Religious |
Islamic New Year | Variable | Religious |
Prophet Muhammad's Birthday | Variable | Religious |
Islamic Holidays follow the lunar calendar and shift approximately 11 days earlier each year:
Christian Holidays (for Christian employees):
Eligibility Requirements:
Payment Calculation:
If an employee works on a public holiday:
Employment Contract Requirements:
Employee Documentation:
For Foreign Employees:
Processing Time: 2-4 weeks for standard applications
Permitted Checks:
Restrictions:
Egyptian Data Protection Law requires:
Intellectual Property Rights:
Standard Terms:
Step | Timeline |
---|---|
Job offer accepted | Day 0 |
Work permit application (if needed) | Day 1-3 |
Employment contract signed | Day 5-7 |
Document verification | Day 7-10 |
Social insurance registration | Day 10-12 |
Payroll setup completed | Day 12-15 |
Employee orientation | Day 15-20 |
Borderless AI manages:
Egyptian law strictly distinguishes between employees and independent contractors, with significant legal and financial implications for misclassification.
Employee Characteristics:
Contractor Characteristics:
Misclassification Risks:
Union Rights:
Collective Agreements:
Communication Style:
Religious Considerations:
Work-Life Balance:
Legal Framework:
Employer Responsibilities:
Tax Implications:
Banking & Finance:
Healthcare:
Oil & Gas:
Technology:
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
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