What do you need to know to hire in Egypt?

Egypt's employer social insurance contribution is 18.75% under the Social Insurance Law No. 148 of 2019. It applies on the variable wage component up to the insurable wage ceiling of EGP 16,700/month from January 2026. Employee social insurance is 11% on the same base. Both contributions are remitted monthly alongside payroll tax.

Teamed's Egypt fee is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.

The full breakdown, with worked examples at current rates, is in the cost guide.

Registering an Egyptian company requires approvals from the General Authority for Investment and Free Zones (GAFI), a commercial registration, and tax registration with the Egyptian Tax Authority. Setup takes several weeks and carries ongoing accounting, payroll, and filing obligations. An Employer of Record is faster and cheaper at low headcount.

The crossover point depends on Egyptian salary levels, your accounting costs, and the labour law administration overhead. For most roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers.

Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own entity on one platform under Teamed's Graduation Model, with tenure preserved.

Labour Law No. 14 of 2025 is the most significant reform to Egyptian employment law in four decades. The old tenure-banded notice structure was replaced with a uniform 3 months notice period for all indefinite contracts under Article 156. Probation is capped at 3 months and cannot be renewed or extended.

The severance formula now splits across two rates: half a month of salary per year for the first 5 years of service, then one full month per year beyond that. Unfair dismissal compensation is set at a minimum of 2 months of salary per year of service. Employers are required to provide a written employment contract under the Nachweisgesetz-equivalent Article 20 obligation. The hiring guide covers the full day-one employer checklist.

Annual leave under Labour Law No. 14 of 2025, Article 47, starts at 15 days in year one, rises to 21 days from year two through year nine, and reaches 30 days after 10 years of service. Egypt counts annual leave and public holidays separately. There are official public holidays throughout the year, including Islamic observances that shift annually by the lunar calendar.

Maternity leave under Article 54 is 17.4 weeks (4 calendar months). Paid paternity leave is 1 day on the day of the child's birth. Sick pay for general (non-industrial) workers is 75% of the social insurance benefit wage for the first 90 days. The benefits guide covers each entitlement and the employer contribution obligations.

Egypt's payroll is monthly. Employers withhold income tax on a sliding scale. The first EGP 40,000 of annual salary is taxed at 0%. The rate then rises: 10% on EGP 40,001 to 55,000, 15% on EGP 55,001 to 70,000, up through 27.5% on income above EGP 1,200,000. There is also a separate annual salary tax exemption of EGP 20,000/year. Employers remit withheld payroll tax within 15 days of the following month.

Social insurance contributions are remitted monthly to the National Organization for Social Insurance (NOSI). The insurable wage ceiling is EGP 16,700/month from January 2026. The tax and payroll guide sets out every band and threshold.

Under Labour Law No. 14 of 2025, Article 156, the notice period for indefinite contracts is a uniform 3 months for both the employer and the employee. This replaced the old tenure-banded structure. Notice must be in writing. The employer pays full salary through the notice period.

Severance accrues from the first day of service. The rate is half a month of last salary per year for the first 5 years, then one full month per year beyond that. Unfair dismissal compensation is a minimum of 2 months of salary per year of service under Article 165. The termination guide covers the full process, including the collective redundancy rules and Ministry of Manpower notification requirements.

The severance formula changes at 5 years of service. Years 1 to 5 accrue at half a month of salary per year. Each year beyond 5 accrues at a full month. A 10-year employee has a much larger severance liability than a flat-rate model suggests. The termination guide shows the calculation for a worked example.

Egypt runs a monthly payroll cycle with a 15 days tax remittance window. Payroll cut-off, NOSI contributions, and Egyptian Tax Authority remittance all land within a tight monthly window. Teamed runs the full cycle, including the NOSI insurable wage ceiling adjustment that came into effect in January 2026. The tax and payroll guide covers every filing step.