Seeking A Reliable Payroll Partner in Egypt ?
With our Egypt Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Egypt’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Egypt Country Overview
Located in the north-eastern corner of Africa, Egypt is without a doubt one of the continent’s most important economic heavyweights.
Geographic location: Bordered to the northeast by Palestine and Israel, the Red Sea to the east, Sudan to the south and Libya to the west, Egypt positions itself as a regional trade hub.
Population: Egypt’s population of 104 million people with a strong educational background give the country a robust workforce, ready to work on new projects.
Economy: Overall, Egypt enjoys political stability, benefits from its proximity to Europe, and from its rising exports, all of which contribute to the robustness of its local currency.
Egypt’s economy relies mainly on agriculture, media, petroleum imports, natural gas, and tourism, with petroleum, natural gas, phosphates, and iron being among the country’s chief natural resources, in addition to the Nile Valley and Delta’s potential for agriculture. In 2017, agriculture contributed 11.7% to GDP, industry contributed to 34.3% and services amounted to 54% of GDP.
Despite an economic backlash caused by the pandemic, Egypt’s trade market displayed an 18.1% increase from 2020 to 2021 to a value estimated at $9.1 billion.
From an investor’s standpoint, Egypt is secure, enjoys a good reputation and has strong backing from outside parties.
Payroll in Egypt - What You Should Know
- Population: 104,258,327
- Gross Domestic Product (GDP): $404.14 B
- GDP Growth (April 2021): 3.3%
- Inflation, consumer prices: 5.5%
- Foreign Direct Investment (% of GDP): 1.6%
- Unemployment Rate: 9.3%
- Capital: Cairo
- Currency: Egyptian pound
- Languages: Arabic
Employer Contribution
- The only employer-contributed payroll tax is to social security which goes as follows:
Employer | Basic | Variable |
Salary maximum | EGP 1,510 | EGP 4,040 |
Maximum contribution | EGP 393 | EGP 970 |
Rate | 26% | 24% |
Employee Contribution
- Employees in Egypt contribute to social insurance in the following ways:
Employee | Basic | Variable |
Salary maximum | EGP 1,670 | EGP 4,040 |
Maximum contribution | EGP 211 | EGP 444 |
Rate | 14% | 11% |
Value-added tax (VAT)
The standard VAT rate is 10% in Egypt.
Paid Time-Off
Employees are generally entitled to 21 days of paid annual leave in Egypt. Once they accumulate 10 years of service for the same employer, they are then entitled to 30 days.
Sick Leave
Sick leaves in Egypt are payable for up to 180 days at 75% for the first 90 days, increased to 85% for the following 90 days.
Maternity Leave
In Egypt, women are entitled to a maximum of 90 days of paid maternity. Under most contracts in the country, women are only eligible for maternity leave twice within 5 years.
Paternity Leave
There is no statutory paternity leave in Egypt.
According to Article 69 of Egypt’s Labor Code, an employer cannot terminate an employee unless the worker breaches the contract by committing a “grave fault”.
“Grave fault” may include the following:
- Assumption of false identity or submission of forged documents
- Continuous violation of safety instructions
- Absence from work for more than 20 non-consecutive or 10 consecutive days in a given year
- Disclosure of the employer’s secrets, causing material loss
- Competition with the employer in the same line of work
- Intoxicated state during working hours
- Assault on any member of the company
Professional incompetence
The severance compensation must be equal to one month’s wage for each of the first 5 years of service, and one-and-a-half months for each following year.
Should an employee be dismissed without a justified cause, the employer shall then be liable to compensation of the employee for no less than two months’ full salary for each year of service in addition to accrued leaves and other benefits.
- Orthodox Christmas Day (7th January)
- January 25 Revolution Day (25th January)
- National Police Day (25th January)
- Sham Ennessim
- Sinai Liberation Day (25th April)
- Labor Day (1st May)
- Eid al-Fitr
- Uprising in Egypt (30th June)
- Revolution Day (23rd July)
- Eid al-Adha
- Islamic New Year
- Armed Forces Day (6th October)
- Prophet’s Birthday
Egypt Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
Related Services
Countries We Cover
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.
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