EGYPT
Payroll Outsourcing
Pay Your Talents in Egypt Compliantly
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Pay Your Team in Egypt. On Time. Everytime.
Ensure your team in Egypt is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Egypt's Labour Code and tax regulations.
- Pay anyone in Egypt - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Egypt.
Flexible Payroll Solutions in Egypt.
Payroll solutions that adapt to your needs whether you are established or growing in Egypt.
Egypt Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Egypt and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Egypt
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Egypt’s legislation at all times.
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
Seeking a Reliable Payroll Partner in Egypt?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Egypt’s labour 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.
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While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
