Hiring in Egypt: Complete Guide 2027
Everything you need to know about hiring and managing employees in Egypt
Overview
Egypt is where the usual cost structure inverts. Employer social insurance is 18.75%, but only on a wage capped at EGP 16,700 a month in 2026, so the contribution flattens at about EGP 3,131 and falls to 5% of a EGP 60,000 senior salary. The bigger line is the EOR fee: $300 to 600 a month is close to EGP 15,000 to 29,000 at 2026 rates, often more than the state takes. Labour Law 14/2025 replaced the 2003 code with Arabic contracts, 3-month probation and 2 months' notice. The private minimum wage has been EGP 7,000 since 1 March 2025.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Egypt
Egyptian payroll is monthly, in pounds, after three registrations: commercial register and tax card through GAFI, an employer file at the National Organization for Social Insurance (NOSI), and the Egyptian Tax Authority. Law 148/2019 sets the employer at 18.75% and the employee at 11% of the insurable wage, EGP 2,700 to 16,700 a month in 2026; both limits rise every January. Above the cap the employer pays a flat EGP 3,131. Salary tax follows Law 7/2024: 0% on the first EGP 40,000 a year, then 10% to 27.5% above EGP 1,200,000, with a EGP 20,000 exemption. Minimum wage: EGP 7,000 in the private sector since 1 March 2025; the public sector moves to EGP 8,000 in July 2026, the matching private decision still pending at the National Wages Council in October 2026. The EOR files the NOSI return, the salary tax forms and the Arabic payslip.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract in Arabic (Law 14/2025)
- Probation up to 3 months
- Fixed-term contracts renewable
Leave & Time Off
- 21 days annual leave (30 after 10 years or from age 50)
- 13 public holidays
- Maternity leave 4 months, paid
Termination Rules
- Legitimate reason required for indefinite contracts
- Notice 2 months (3 after 10 years' service)
- Unjustified dismissal: compensation set by the labour court
COMPLIANCE
Labour Law 14/2025 and Termination Compliance in Egypt
Labour Law 14/2025 replaced Law 12/2003 and is the text every Egyptian contract now cites. Contracts are in Arabic; probation runs up to 3 months; fixed-term contracts can be renewed. Ending an indefinite contract needs a legitimate reason and 2 months' notice, 3 after 10 years. When the labour court finds the reason insufficient, it sets the compensation itself: no statutory formula, so keep a dismissal file from day one. Annual leave is 21 days, 30 after 10 years or from age 50, plus 13 public holidays; maternity leave is 4 months paid. The week is 48 hours, Friday off. Expats need a Ministry of Labour work permit and count against a 10% foreign-staff ceiling that the EOR's own payroll has to carry.
Key Challenges
- Contracts must be written in Arabic under Law 14/2025; the English copy is a courtesy
- Expat work permits: 10% of a company's headcount, no more
- Minimum wage moved twice in 18 months (EGP 7,000 since March 2025, EGP 8,000 pending)
- Compensation for an unjustified dismissal is set by the labour court, not by a formula
- A USD-priced EOR fee often costs more than the social insurance it replaces
Country Highlights
Advantages
- Employer social insurance stops at EGP 16,700 of monthly wage: about EGP 3,131 whatever the salary
- Deep pool of English-speaking engineers and shared-services staff in Cairo and Alexandria
- 0% tax on the first EGP 40,000 a year
- 3 to 7 days to onboard through an EOR, against months for a local company
- Two hours ahead of London, overlapping the Gulf and Europe
Popular Industries & Roles
Technology
Avg. Salary: EGP 300k-EGP 720k
Cairo's software engineers serve Gulf and European clients from the Smart Village and Maadi tech parks at a fraction of Dubai salaries
Shared Services & BPO
Avg. Salary: EGP 120k-EGP 300k
Egypt is the largest shared-services and call-centre base in the Arab world, with multilingual teams in Cairo and Alexandria
Energy & Engineering
Avg. Salary: EGP 240k-EGP 600k
Gas fields, refineries and the Suez Canal zone keep petroleum, civil and electrical engineers in steady demand
Top 3 Providers in Egypt
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Keys Payroll
- Egypt, Cyprus and Jordan EOR/PEO
- Founded 2006; Ministry of Manpower Award
- Egypt work permits with 10:1 quota provision
- GoodFirms 5/5; Clutch 5/5 (1 review)
RemotePass
- MENA and Africa EOR specialist
- EOR from $349/month; no setup fees
- G2 4.8/5 (542 reviews); Trustpilot 3.8/5
- Visa sponsorship from $549/month
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Egypt through an EOR, in short.
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How much does an employer pay on top of salary in Egypt?
Employer contributions in Egypt come to 18.75%; the largest mandatory line is Social insurance 18.75%. With the other statutory benefits and a typical EOR fee, budget ~35–80% on top of gross salary.
What does an EOR charge per employee in Egypt?
Published EOR fees in Egypt run $300–600/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Egypt pay in tax and contributions?
Income tax is 0–27.5% progressive and employee social contributions are 11% (11% social insurance), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Egypt?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Egypt?
Keys Payroll, RemotePass and Deel hold the first three places in our ranking for hiring in Egypt. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Egypt.
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