EGYPT - Employer of record

 

✔ We get your team working in Egypt

✔ We handle all your payroll needs

✔ We ensure 100% compliance for your business

Africa HR Solutions caters for employer of record solutions for businesses that need to recruit employees and run payroll without first setting up a branch office or subsidiary in Egypt. Your applicants are hired by using Africa HR Solutions Egypt PEO in agreement with local labor laws and can be on-boarded in a few days instead of the months it typically takes. The person is assigned to work on your staff, working on your organization’s behalf just like he or she was your employee.

As always, we guarantee 100% compliance for your business in Africa.

Need Employer of Record services in Egypt?

Overview of Egypt

Egypt is in northeast Africa with a small portion of the country on the Asian continent. The country borders the Mediterranean Sea and the Red Sea and controls the Suez Canal. The famed Nile river cuts vertically across Egypt, flowing towards the Mediterranean. Because most of Egypt’s territory is desert, 96% of the population of 91 million lives either along the Nile or in the Nile Delta. Egypt’s GDP is USD 286 billion and growing at 3.8% annually. The unemployment rate is 12.7%. Egypt’s major exports are oil, chemicals, agricultural products, livestock, and textiles.

Official public holidays in Egypt
  • Coptic Christmas Day
  • Revolution Day
  • Sinai Liberation Day
  • Coptic Easter
  • Labour Day
  • Sham el Messim
  • Eid Al Fitr
  • National Day
  • Eid Al Adha
  • Al Hijra
  • Armed Forces Day
  • Milad Un Nabi
Employment in Egypt

Fixed-term contracts are allowed for up to 5 years. Employees who continue to work after 5 years will be considered to have indefinite term contracts.

It is legally required to put a written employment contract in place in Egypt, in triplicate and in Arabic. The contract should spell out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Egypt should always state the salary and any compensation amounts in Egyptian pounds rather than a foreign currency.

Working hours in Egypt

In general, the work week is 40 hours from Sunday through Thursday.

Bonus payment in Egypt

Employees who have worked for at least 12 consecutive months are generally entitled annual bonuses are common in Egypt.

Vacation leave in Egypt

Employees are generally entitled to 21 days of annual paid leave, once they have worked for 6 months. After 10 years of service, or on reaching the age of 50, they are entitled to a month of paid leave.

Employees who have worked for a consecutive 5 years are generally eligible for a one-time, one month’s paid leave for a religious pilgrimage.

Sick leave in Egypt

Employees are generally entitled to up to 6 months of sick leave to be paid at between 75% and 100% of the employee’s regular wage.

Maternity & Paternity leave in Egypt

Female employees are generally entitled to 90 days of paid maternity leave. Under most contracts, women are only eligible for maternity leave twice within 5 years.

Taxes in Egypt

Employees and employers must contribute to social security, up to a limit of salary, as follows:

 

For salaries up to LE 700

Employer: 26%

Employee: 14%

For salaries over LE 700 and up to LE 500

Employer: 24%

Employee: 11%

Termination/Severance in Egypt

Probation periods may not exceed three months and may not be renewed. 

An employer who wishes to terminate an employee must go before a committee with judicial powers at the Ministry of Manpower and Migration. The committee has 15 days to decide whether to grant the request. The employer may then dismiss the employee, who retains the right to challenge the dismissal in court.

Employees with less than 10 years of service are entitled to 60 days’ notice of termination. After 10 years, the employee is entitled to 90 days’ notice.

How Africa HR Solutions can help you Egypt

Our employer of record service helps organizations to process payroll in Egypt while Africa HR Solutions takes care of taxation, and compliance management matters are lifted out of their shoulders onto ours. As an African PEO professional, we handle employment best practices, statutory and local standard, benefits, and employee expenses, in addition to severance and termination when needed.

Moreover, we keep you updated of any amendments to local employment legislation in Egypt.

 

When using our services, your new hire is effective even earlier, since he has a better hiring transition. You will have peace of mind knowing that you have a team of dedicated employment professionals, backed by years of experience, helping with every on-boarding.

Africa HR Solutions allows you to focus on running efficiently your core business.

TALK TO US ABOUT YOUR NEXT PROJECT IN EGYPT

We’ll get to you within 48 hours.