Employer of Record in Egypt

General Information

• Currency: Egyptian Pound (EGP)
• Employer Taxes: 19.75%- 22.00%
• Payroll Frequency: Monthly/bi-monthly
• Employee Costs: 11%
• Capital: Cairo
• Fiscal Year: 1 July – 30 June

Main Aspects of the Labour Code

Minimum Wage

General: The minimum wage in Egypt is currently set at  6,000 EGP.

Payroll

Payroll Cycle: In Egypt, payroll is typically processed on a monthly basis, but a bi-monthly payroll schedule can also be offered.

13th Salary

In Egypt, there is no legal requirement for 13th-month payments.

Working Hours

General: The typical working week in Egypt is made up of 8 hours a day, totaling 40 hours per week.

Overtime: Any hours worked over 48 per week are eligible for overtime pay at 135% of the regular salary for daytime hours and 170% for nighttime work. For work on non-regular days, the rate is double the daily wage, plus an additional day off the following week. Agreement in advance is required for working on days off.

Leave

Annual Leave (Vacation):

In Egypt, employees are entitled to 21 working days of paid annual leave per year after completing at least six consecutive months of employment. This entitlement increases to 30 days for employees who have been with the company for ten consecutive years or those over 50 years of age. Unused vacation days can be carried over to the following year.

Public Holidays

Each year, the government may determine whether public holidays that fall on weekends will be observed on a weekday or considered lost. Additionally, specific religious holidays are based on the lunar calendar and will be confirmed closer to their respective dates.

Sick Days

An employee is entitled to up to 6 months of paid sick leave covered by social security, provided they submit a professional medical certificate confirming their illness. For the first 90 days of sick leave, the employee receives 75% of their regular salary, which then increases to 85% for the next 90 days.

Maternity Leave

Female employees who have been employed for ten consecutive months are entitled to 90 days of paid maternity leave. The maternity leave pay is 100% of their salary, with 75% covered by Egyptian social security (based on a social insurance salary of 10,900) and 25% by the employer. It’s common for employers to cover the full 100% for the entire three months. Employees can take three maternity leave periods during their total employment. Upon returning, mothers are entitled to two thirty-minute nursing breaks or one combined hour-long break each day for up to two years after the birth.

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

Depending on the terms of the collective agreement or employment contract, employees may be granted additional types of leave with the employer’s approval.

Casual Leave: Employees are entitled to up to six days off per year without needing to provide a reason. A maximum of two days can be taken at a time. Casual leave is counted as part of the annual leave entitlement.

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