---
title: "Egypt Tax & Payroll 2026 | Social Insurance, Income Tax"
description: "Egypt payroll tax 2026: 18.75% employer social insurance, 11% employee, both capped at EGP 16,700/month. Seven income-tax bands to 27.5%."
canonical: https://www.teamed.global/country-hiring-guides/egypt/tax-and-payroll
---

Egypt · Tax & payroll child

Served by Teamed vetted partner-entity network in Egypt

# How does *Egypt payroll tax* work in 2026?

Egypt caps social insurance at a monthly wage of EGP 16,700/month. Above that ceiling, the employer's 18.75% and the employee's 11% stop climbing. Income tax keeps rising across seven bands to 27.5%.

Last reviewed 13 June 2026 · Egypt guide

![Cairo skyline at golden hour with the Nile and modern office towers along the riverbank.](/images/country-guides/egypt-tax-payroll.webp)

Illustration · Cairo, Egypt

Answer.cite this

Egypt social insurance in 2026: the employer pays 18.75% and the employee pays 11%. Both rates stop at a monthly wage of EGP 16,700/month.

Income tax runs across seven bands. The first EGP 40,000 of yearly income is taxed at 0%. The top band reaches 27.5%. Every employee also gets a yearly salary tax exemption of EGP 20,000.

Payroll runs monthly, so 12 pay runs a year. The employer withholds income tax and remits it within 15 days of the month end (Income Tax Law No. 91 of 2005).

![A pocket calculator and a stack of printed payslips on a sunlit wooden desk.](/images/country-guides/egypt-tax-payroll-polaroid-1.webp)

Working the numbers

## What does an employer pay in Egypt social insurance?

The employer pays social insurance at 18.75% of the insurable wage. The wage is capped at EGP 16,700/month.

Above that ceiling the employer rate no longer applies. So the most an employer pays per month is 18.75% of EGP 16,700/month (Social Insurance Law No. 148 of 2019).

Egypt runs a single national social-insurance scheme under the National Organisation for Social Insurance (NOSI). It covers pensions, work-injury, sickness and unemployment in one contribution. There is no separate pension stack to run on top.

| Contribution | Paid by | Rate | Capped at |
| --- | --- | --- | --- |
| Social insurance | Employer | 18.75% | EGP 16,700/month |
| Social insurance | Employee | 11% | EGP 16,700/month |

The insurable wage ceiling rose to EGP 16,700/month from January 2026. NOSI adjusts this ceiling each year, so the cash cost of the employer rate moves with it even when the percentage stays flat. The floor is the national minimum wage of EGP 7,000/month for the private sector.

For most professional and tech salaries the contribution wage is well above the ceiling. That means the employer's social-insurance cost is effectively a fixed monthly amount rather than a percentage of the full salary. This is the single biggest difference between Egypt and a percentage-of-everything system.

## What does an employee pay in Egypt social insurance?

The employee pays social insurance at 11% of the insurable wage. The same EGP 16,700/month ceiling applies.

The employer deducts this from gross pay each month. Earnings above the ceiling carry no further social-insurance deduction (Social Insurance Law No. 148 of 2019).

The employee contribution sits alongside the employer one and funds the same combined scheme. It is withheld at source on the monthly payroll run and shown as a deduction on the payslip.

| Wage band | Employee social-insurance rate |
| --- | --- |
| Up to the minimum wage of EGP 7,000/month | 11% |
| Between the floor and the EGP 16,700/month ceiling | 11% |
| Above the EGP 16,700/month ceiling | No further deduction |

Because the ceiling caps the contribution, a higher salary does not mean a higher social-insurance deduction once the wage clears EGP 16,700/month. From that point income tax does the heavy lifting on take-home pay, not social insurance.

## Egypt income tax bands for 2026

Income tax has seven bands. The first EGP 40,000 of yearly income pays 0%. The rate then steps up to 10%, 15%, 20%, 22.5%, 25% and finally 27.5%.

Every employee also gets a yearly salary tax exemption of EGP 20,000. It sits on top of the zero-rate band.

| Annual income band (EGP) | Rate |
| --- | --- |
| Up to EGP 40,000 | 0% |
| EGP 40,001 to EGP 55,000 | 10% |
| EGP 55,001 to EGP 70,000 | 15% |
| EGP 70,001 to EGP 200,000 | 20% |
| EGP 200,001 to EGP 400,000 | 22.5% |
| EGP 400,001 to EGP 1,200,000 | 25% |
| Above EGP 1,200,001 | 27.5% |

### The yearly salary exemption on top of the bands

Both residents and non-residents get an annual salary tax exemption of EGP 20,000. This applies before the bands bite, on top of the 0% zero-rate band on the first EGP 40,000 of income. The exact interaction of the two reliefs is not fully spelt out in the source, so practitioner treatment can vary at the margin. Teamed applies the standard Egyptian Tax Authority method.

The bands are progressive, so only the slice of income inside each band is taxed at that band's rate. A salary that reaches the 27.5% band does not have its whole income taxed at 27.5%. Only the part above EGP 1,200,001 a year is.

## How does Egypt payroll withholding and filing work?

The employer withholds income tax from each monthly payslip. It then remits the tax to the Egyptian Tax Authority within 15 days of the month end.

Egypt runs a monthly cycle, so 12 pay runs a year. Salaries are usually paid by the last working day of the month (Income Tax Law No. 91 of 2005).

PwC · Egypt tax administration

Employers run a monthly payroll cycle and withhold income tax at source. The withheld tax must be remitted to the Egyptian Tax Authority within **15 days** of the subsequent month following payment. Social-insurance contributions follow the same monthly rhythm.

Source: [PwC: Egypt individual tax administration](https://taxsummaries.pwc.com/egypt/individual/tax-administration)

Payroll in Egypt is a monthly, withhold-at-source system. There is no real-time per-payday filing like UK RTI. The employer calculates gross pay, deducts the employee's 11% social insurance and the income tax due, then pays the worker the net amount.

The employer is the collecting agent for the state. Both the income tax withheld and the combined social-insurance contribution are paid over to the authorities on the monthly schedule. Late remittance carries interest and penalties under the tax code.

Year-end reconciliation aligns the monthly withholding with the employee's full annual liability across the seven bands. Teamed runs the monthly remittances and the year-end reconciliation as part of the standard payroll service.

1. Collect pay data Gather salary, allowances and any variable pay for the month before the run closes.
2. Calculate gross pay Total the salary and any taxable allowances for the period.
3. Deduct employee social insurance and income tax Apply the employee social-insurance rate up to the wage ceiling, then withhold income tax across the progressive bands to reach net pay.
4. Calculate the employer contribution Work out the employer social-insurance charge on the insurable wage, capped at the monthly ceiling.
5. Remit tax and contributions Pay the withheld income tax and the combined social insurance to the authorities within the monthly deadline. File the year-end reconciliation when due.

## Pensions and the combined social-insurance contribution

Egypt has no separate pension contribution on top of payroll. The pension is built into the single social-insurance contribution.

The combined 18.75% employer and 11% employee rate covers pensions, sickness, work injury and unemployment together (Social Insurance Law No. 148 of 2019).

Unlike countries with auto-enrolment pensions stacked on top of payroll tax, Egypt folds the pension into one national contribution. The employer's 18.75% and the employee's 11% together fund the whole scheme. There is no second pension percentage to budget for.

That makes the employer cost easier to model. Once you know the salary and the EGP 16,700/month ceiling, the social-insurance cost is fixed and predictable for the year.

### Sick pay inside the scheme

The social-insurance scheme also pays sickness benefit. For general (non-industrial) workers, the benefit is 75% of the insured daily wage for the first 90 days of illness (Social Insurance Law No. 148 of 2019, Article 76). The rate then rises for the period after that. Workers in industrial establishments have a separate, more generous structure under the labour law.

Because the benefit is paid by the state scheme rather than the employer directly, it does not add a separate payroll line. It is funded by the contributions both sides already pay.

## How does Teamed handle Egypt payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Egypt for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Payroll, income-tax withholding and social-insurance filing run on **one platform**.

**Real HR and legal experts** handle your Egypt hires, from the first offer letter through every monthly remittance and year-end reconciliation. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice.

EOR payroll, contractor onboarding and entity setup all live on **one platform**. A contractor in Egypt who converts to local payroll keeps their record. That same employee can **graduate** from EOR to your own Egyptian entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture. EOR is the right model for a first Egypt hire, **until it isn't**. Start from the Egypt hiring overview.

Key sources: [PwC Egypt income tax](https://taxsummaries.pwc.com/egypt/individual/taxes-on-personal-income), [PwC Egypt tax administration](https://taxsummaries.pwc.com/egypt/individual/tax-administration), and [ICLG Egypt employment law](https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/egypt).

## Frequently asked questions

What is the employer social insurance rate in Egypt in 2026?

The employer pays social insurance at 18.75% of the insurable wage. The wage is capped at EGP 16,700/month, so above that level the employer cost is a fixed monthly amount rather than a percentage of the full salary. The contribution funds pensions, sickness, work injury and unemployment in one scheme.

What does an Egyptian employee pay in social insurance?

The employee pays social insurance at 11% of the insurable wage, withheld at source each month. The same EGP 16,700/month monthly ceiling applies, so earnings above that level carry no further social-insurance deduction.

What are the Egypt income tax bands in 2026?

Income tax runs across seven progressive bands. The first EGP 40,000 of annual income is taxed at 0%, then 10%, 15%, 20%, 22.5%, 25%, and finally 27.5% on income above EGP 1,200,001 a year. Employees also receive a yearly salary tax exemption of EGP 20,000.

How and when is Egyptian payroll tax filed?

The employer withholds income tax from each monthly payslip and remits it to the Egyptian Tax Authority within 15 days of the subsequent month following payment. Egypt runs a monthly cycle of 12 pay runs a year, with salaries usually paid by the last working day of the month.

Is there a separate pension contribution in Egypt?

No. Egypt folds the pension into the single national social-insurance contribution. The combined 18.75% employer and 11% employee rate covers pensions, sickness, work injury and unemployment together, so there is no second pension percentage to budget for on top of payroll.

Teamed Legal Operations

The number that catches people out in Egypt is the social-insurance ceiling. They budget the employer rate against the full salary and overstate the cost. Above the monthly wage cap, social insurance is a fixed amount, not a percentage of everything. Get the ceiling into your model and the employer cost stops being a moving target.

A note from Tom Price-Daniel

Egypt caps social insurance at a monthly wage of EGP 16,700/month, so the employer's 18.75% is a fixed cost on higher salaries, not a percentage of the lot.  
Then income tax climbs across seven bands to 27.5%, with a yearly exemption of EGP 20,000 on top.  
Model the ceiling first. Run the numbers before you make the offer.

Tom Price-Daniel · Co-founder, Teamed

## Related Egypt guides

- Hiring in Egypt, overviewparent
- [Egypt employer cost breakdown](/country-hiring-guides/egypt/cost-breakdown)sibling
- Egypt benefitssibling
- [Egypt termination and severance](/country-hiring-guides/egypt/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Egyptian Tax Authority and the National Organisation for Social Insurance, or speak to a qualified professional, before relying on any specific framework. The insurable-wage ceiling is adjusted each year by NOSI, so the cash value of contributions moves even when the rates hold. Labour Law No. 14 of 2025 reshaped wider employment rules from September 2025.