24.00% - Social Security (Variable) - capped at 4,040 EGP
1.00% - Unemployment
11.00% - Social security contribution on variables
Minimum wage in Egypt is 2,000 EGP per month.
Paid Time Off
In Egypt, annual leave is 21 days if an employee has worked at least 1 year.
If the employee has been employed over 10 years, annual leave is 30 days.
Employees over the age of 50 are entitled to 30 days of leave.
An employee is able to claim up to 6 months of paid sick leave and must provide a certificate of sickness.
- For the first 90 days of sick leave, the employee entitled to 75% of their salary.
- For the following 90 days, the employee is entitled to 85% of their salary.
- If necessary, the employee may convert their annual leave days to sick leave.
Female employees that have been contributing to social insurance to the past 10 months are entitled to up to 3 months’ maternity leave for each child up to three children and are entitled to 75% of the last salary.
Upon return to the workplace, the woman is entitled to 2- half hour nursing breaks or a combined hour each day for 24 months after the date of birth.
For workplaces with more than 100 employees, it is mandatory that the employer provide an in-house nursery or is responsible for placing the child in nursery care until the age of schooling.
There is no statutory paternity leave in Egypt.
If there are more than 50 employees in the company, the mother is entitled to 24 months of unpaid leave for each child.
For employees who have dependents, the ability to work flexible hours is not mandatory, however, in many cases, will be stipulated in the employment contract.
Work related injury leave: For temporary disability, 100% of the wage is paid from the first day of injury until the employer is cleared to return to work or is declared permanently disabled.
A full workday in Egypt is 8 hours.
Overtime is paid at the rate of an additional 35% of normal pay during daytime hours and 70% during night hours.
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.
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.
Pay date is by the 5th of the following month.
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.
The length of the notice period depends on how long the employee has been in service:
Less than 10 years
More than 10 years
Severance payment is not mandatory in Egypt unless outlined in the employment contract.