Overview

Capital
Cairo
Currency
Egyptian Pound
Date Format
dd/mm/yyyy

Taxes

Employer
26.00% - Social Security - for the fixed salary, capped at 1,670 EGP
24.00% - Social Security (Variable) - capped at 4,040 EGP
1.00% - Unemployment
Employee
14.00% - Social Security contribution on the fixed salary
11.00% - Social security contribution on variables

Minimum Wage

General

Minimum wage in Egypt is 2,000 EGP per month. 

Working Hours

General

A full workday in Egypt is 8 hours.

Overtime

Overtime is paid at the rate of an additional 35% of normal pay during daytime hours and 70% during night hours.   

VAT

General

14% 

Mandatory Benefits

Social Security

In Egypt, social security is comprised of pension, disability insurance, occupational accident insurance, sickness and injury insurance, unemployment, and social care for the elderly. 

Employer Contributions: 26.00% of the fixed salary cap of 1,670 EGP and 24.00% on the fixed variable cap of 4,040 EGP.

Employee contributions: 14.00% on the fixed basic salary cap and 11.00% on the fixed variable cap.

Unemployment Insurance

Employers contribute 1% to unemployment.

Unemployed persons will receive 75% of their wages for the first four weeks, 65% for the following four weeks, 55% for the third four weeks, and 45% for the rest of the period.

Those unemployed will receive benefits for 12 weeks if they have less than 36 months of contributions, or 28 weeks of benefits if they have more than 36 months of contributions.

Payroll

Payroll Cycle

Pay date is by the 5th of the following month. 

Termination

Termination Process

It is very difficult to terminate an employment contract before the expiry date of the contract and is generally considered wrongful termination unless the dismissal is based on a “fundamental breach” of contract which is outlined as follows:

·        Falsifying/forging identification

·        Violation of safety instructions

·        Absence of 20 or more non - consecutive days or 10 consecutive days in a year

·        Disclosure of employer secrets that cause significant loss

·        Competing with the employer in the same field of work

·        Intoxication during work hours

·        Physical altercations with the employer or other employees

·        Professional incompetence

Termination for a definite employment contract without a justified cause: The employer must pay the employee what they would have received if they would have fulfilled their employment contract. 

Termination of employment of an indefinite contact without a justified clause: Employer is obligated to pay compensation of no less than 2 month’s salary for each year that the employee served.

In the case of an unfair dismissal, compensation shall be agreed upon, however, cannot be less than 2 months’ salaries. 

Advance Notice

The length of the notice period depends on how long the employee has been in service:

Years employed

Notice Period

Less than 10 years

2 months

More than 10 years

3 months

Severance Pay

Severance payment is not mandatory in Egypt unless outlined in the employment contract.