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.
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.
Employer Contribution
Employer | Basic | Variable |
Salary maximum | EGP 1,510 | EGP 4,040 |
Maximum contribution | EGP 393 | EGP 970 |
Rate | 26% | 24% |
Employee Contribution
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:
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.
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.
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.
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.
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.
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.
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.
Onboard and pay your talents in Egypt without having to set up a legal entity with our extensive Employer of Record solutions.
Outsource your payroll and benefits administration to us and get access to best in class advantages for your employees.
We take care of your HR functions to help you save up on the overall cost and ensure your operations are carried out compliantly.
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.