Good to know
Local Currency: Egyptian Pound (EGP)
Minimum Salary: 3,000 EGP
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
48 hours per week in case of a 6 day workweek for some business.
Working Week: from Sunday to Thursday
About Egypt
Egypt, officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. Egypt is the most populous country in North Africa and the fourth-most populous on the African continent, it has around 105 million residents.
Employees shall be subject to Egyptian salary tax and the company must make the necessary monthly tax withholdings. Social Insurance contributions are required for Egyptian employees from both the employers and the employees.
Ready to Benefit from Egyptian HR & Payroll Experts?
Social Insurance Contributions in Egypt
The new law made major changes to how “salary” is defined for the purpose of calculating social insurance contributions (as shown in the table below). The “comprehensive insurance salary” replaced the distinction made between the “basic” and “variable” insurance salaries under the previous Social Insurance Law No. 79/1975.
According to the New Law, the comprehensive insurance wage refers to the actual compensation received by the employee, including the fixed salary, bonuses, commissions, raises, overtime pay, tips, and any other form of compensation (subject to the below descripted minimum and maximum threshold).
The Social Security Rate in Egypt is a labour income tax that is charged to both companies and employees. The government of Egypt receives a significant portion of its funding from the Social Security Rate which is used to pay for numerous social programmes like welfare, health care, pension and numerous other benefits.
Starting from 1 January 2022, the subscription wage has been determined with a minimum of EGP 1,400 and maximum limit of EGP 9,400 for the sake of enhancing the pensions. These two limits (the minimum and the maximum) are going to be increased by 15% every year and follow the the rate of inflation as of 1 January 2028.
The salary shall be subject to the following minimum and maximum amounts, and the contribution is as follows:
- Employer contribution is 18.75%
- Employee share is 11%
Social Insurance Salary Limits |
||||
| Year | Minimum wage (EGP) | Maximum wage (EGP) | ||
| 2022 | 1,400 | 9,400 | ||
| 2023 | 1,700 | 10,900 | ||
| 2024 | 2,000 | 12,600 | ||
| 2025 | 2,300 | 14,500 | ||
| 2026 | 2,700 | 16,700 | ||
| 2027 | 3,200 | 19,300 | ||
According to the Egyptian Law, the following insurance programmes are available to covered individuals:
- Old age, disability, and death
- Work injuries
- Illness/sickness
- Unemployment
Individual Income Tax in Egypt
The Individual Income Tax is imposed on the total net income of the resident individuals for the income earned in Egypt.
The employer is required to make the necessary monthly tax withholdings and deduct it from employees’ paychecks each month at the source.
They must remit the amount deducted to the corresponding tax office within the first 15 days of the following month.
The employer also need to submit a quarterly tax return within one month after the end of each quarter.
At the end of the year, the employer must complete an annual reconciliation of the salary tax to check for any discrepancy. Any such tax difference must be declared to the appropriate tax agency by January of the following year.
Collection
It is the employer’s responsibility to withhold salary taxes and file quarterly tax returns to the ETA (Egyptian Tax Authority). The employer has one month after the end of each quarter to file such returns. Additionally, the employer is required to file annual salary tax reconciliation outlining salaries paid to each employee, deductions, exemptions, tax due, and the net salary paid to each employee.
Employers must also withhold social security contributions from the employees’ salaries and remit them to the NOSI (National Organisation for Social Insurance).
Source : The Egyptian Government
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Egypt.
Our Payroll and HR services in Egypt
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Egypt
HR & Payroll in Egypt
Good to know
Local Currency: Egyptian Pound (EGP)
Minimum Salary: 3,000 EGP
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
48 hours per week in case of a 6 day workweek for some business.
Working Week: from Sunday to Thursday
Ready to Benefit from Egyptian HR & Payroll Experts?
About Egypt
Egypt, officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. Egypt is the most populous country in North Africa and the fourth-most populous on the African continent, it has around 105 million residents.
Employees shall be subject to Egyptian salary tax and the company must make the necessary monthly tax withholdings. Social Insurance contributions are required for Egyptian employees from both the employers and the employees.
Social Insurance Contributions in Egypt
The new law made major changes to how “salary” is defined for the purpose of calculating social insurance contributions (as shown in the table below). The “comprehensive insurance salary” replaced the distinction made between the “basic” and “variable” insurance salaries under the previous Social Insurance Law No. 79/1975.
According to the New Law, the comprehensive insurance wage refers to the actual compensation received by the employee, including the fixed salary, bonuses, commissions, raises, overtime pay, tips, and any other form of compensation (subject to the below descripted minimum and maximum threshold).
The Social Security Rate in Egypt is a labour income tax that is charged to both companies and employees. The government of Egypt receives a significant portion of its funding from the Social Security Rate which is used to pay for numerous social programmes like welfare, health care, pension and numerous other benefits.
Starting from 1 January 2022, the subscription wage has been determined with a minimum of EGP 1,400 and maximum limit of EGP 9,400 for the sake of enhancing the pensions. These two limits (the minimum and the maximum) are going to be increased by 15% every year and follow the the rate of inflation as of 1 January 2028.
The salary shall be subject to the following minimum and maximum amounts, and the contribution is as follows:
- Employer contribution is 18.75%
- Employee share is 11%
Social Insurance Salary Limits |
||||
| Year | Minimum wage (EGP) | Maximum wage (EGP) | ||
| 2022 | 1,400 | 9,400 | ||
| 2023 | 1,700 | 10,900 | ||
| 2024 | 2,000 | 12,600 | ||
| 2025 | 2,300 | 14,500 | ||
| 2026 | 2,700 | 16,700 | ||
| 2027 | 3,200 | 19,300 | ||
According to the Egyptian Law, the following insurance programmes are available to covered individuals:
- Old age, disability, and death
- Work injuries
- Illness/sickness
- Unemployment
Individual Income Tax in Egypt
The Individual Income Tax is imposed on the total net income of the resident individuals for the income earned in Egypt.
The employer is required to make the necessary monthly tax withholdings and deduct it from employees’ paychecks each month at the source.
They must remit the amount deducted to the corresponding tax office within the first 15 days of the following month.
The employer also need to submit a quarterly tax return within one month after the end of each quarter.
At the end of the year, the employer must complete an annual reconciliation of the salary tax to check for any discrepancy. Any such tax difference must be declared to the appropriate tax agency by January of the following year.
Collection
It is the employer’s responsibility to withhold salary taxes and file quarterly tax returns to the ETA (Egyptian Tax Authority). The employer has one month after the end of each quarter to file such returns. Additionally, the employer is required to file annual salary tax reconciliation outlining salaries paid to each employee, deductions, exemptions, tax due, and the net salary paid to each employee.
Source : The Egyptian Government
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Egypt.
Our Payroll and HR services in Egypt
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Egyptian Pound (EGP)
Minimum Salary: 3,000 EGP
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
48 hours per week in case of a 6 day workweek for some business.
Working Week: from Sunday to Thursday
Ready to Benefit from Egyptian HR & Payroll Experts?
About Egypt
Egypt, officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. Egypt is the most populous country in North Africa and the fourth-most populous on the African continent, it has around 105 million residents.
Employees shall be subject to Egyptian salary tax and the company must make the necessary monthly tax withholdings. Social Insurance contributions are required for Egyptian employees from both the employers and the employees.
Social Insurance Contributions in Egypt
The new law made major changes to how “salary” is defined for the purpose of calculating social insurance contributions (as shown in the table below). The “comprehensive insurance salary” replaced the distinction made between the “basic” and “variable” insurance salaries under the previous Social Insurance Law No. 79/1975.
According to the New Law, the comprehensive insurance wage refers to the actual compensation received by the employee, including the fixed salary, bonuses, commissions, raises, overtime pay, tips, and any other form of compensation (subject to the below descripted minimum and maximum threshold).
The Social Security Rate in Egypt is a labour income tax that is charged to both companies and employees. The government of Egypt receives a significant portion of its funding from the Social Security Rate which is used to pay for numerous social programmes like welfare, health care, pension and numerous other benefits.
Starting from 1 January 2022, the subscription wage has been determined with a minimum of EGP 1,400 and maximum limit of EGP 9,400 for the sake of enhancing the pensions. These two limits (the minimum and the maximum) are going to be increased by 15% every year and follow the the rate of inflation as of 1 January 2028.
The salary shall be subject to the following minimum and maximum amounts, and the contribution is as follows:
- Employer contribution is 18.75%
- Employee share is 11%
Social Insurance Salary Limits |
||||
| Year | Minimum wage (EGP) | Maximum wage (EGP) | ||
| 2022 | 1,400 | 9,400 | ||
| 2023 | 1,700 | 10,900 | ||
| 2024 | 2,000 | 12,600 | ||
| 2025 | 2,300 | 14,500 | ||
| 2026 | 2,700 | 16,700 | ||
| 2027 | 3,200 | 19,300 | ||
According to the Egyptian Law, the following insurance programmes are available to covered individuals:
- Old age, disability, and death
- Work injuries
- Illness/sickness
- Unemployment
Individual Income Tax in Egypt
The Individual Income Tax is imposed on the total net income of the resident individuals for the income earned in Egypt.
The employer is required to make the necessary monthly tax withholdings and deduct it from employees’ paychecks each month at the source.
They must remit the amount deducted to the corresponding tax office within the first 15 days of the following month.
The employer also need to submit a quarterly tax return within one month after the end of each quarter.
At the end of the year, the employer must complete an annual reconciliation of the salary tax to check for any discrepancy. Any such tax difference must be declared to the appropriate tax agency by January of the following year.
Collection
It is the employer’s responsibility to withhold salary taxes and file quarterly tax returns to the ETA (Egyptian Tax Authority). The employer has one month after the end of each quarter to file such returns. Additionally, the employer is required to file annual salary tax reconciliation outlining salaries paid to each employee, deductions, exemptions, tax due, and the net salary paid to each employee.
Employers must also withhold social security contributions from the employees’ salaries and remit them to the NOSI (National Organisation for Social Insurance).
Source : The Egyptian Government
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Egypt
Our Payroll and HR services in Egypt
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure