Egypt

Egypt PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Egypt to companies willing to enter the Egyptian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Egypt.  However our solution allows you to start the operations in Egypt within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. .

Egypt fast facts

Population, million: 98.42
Land area: 1,010,408km² 
Capital: Cairo
Local currency: Egyptian pound

Hiring, Negotiating and Doing Business in Egypt

Necessity of written employment contract

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.

Different forms of engagement: employment, contracting, work with private entrepreneur

  • Self-employed
  • Public sector workers
  • Private sector workers
  • Service sector workers

Egypt Employment Contract

Types of employment agreements

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.

Egypt working hours

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

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

Egypt Maternity Leave

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.

Maternity Leave

Female employees covered by social insurance are entitled to three months of paid maternity leave for each up to three children, provided they have been contributing to the social insurance for the past 10 months. Maternity benefits are paid at 75% of the last wage. Moreover, women employed in establishments with more than 50 employees are entitled to up to two years of unpaid childbearing leave per child as stipulated in the Labor Law.

A woman preserves all her rights and benefits upon return to workplace from maternity leave.

Labor Law does not provide provisions for paternity leave.

Egyptian Severance Laws

Termination of employment

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.

Severance payments

For definite term employment agreements, the employee shall be entitled to all his entitlements in addition to the gross salary of the remaining period of the employment agreement as for indefinite term employment agreements, the employee shall be entitled to a compensation equal to the one determined by the court of law, which in all cases would not be less than two months’ gross salary for each year of service.  

Egypt Tax

The corporate income tax (CIT) rate in Egypt is 22.5% on the net taxable profits of a company.

The above rate applies to all types of business activities except for oil exploration companies, whose profits are taxed at 40.55%. In addition, the profits of the Suez Canal Authority, the Egyptian Petroleum Authority, and the Central Bank of Egypt are taxable at a rate of 40%.

The social insurance contribution of the employer is 18.75% of the total social insurance salary.

Health Insurance Benefits 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.

As stipulated in Article 54 of the Labor Law, in case of employee’s sickness he/she is entitled to sick leave based on the report from concerned medical authority. According to Social Insurance Law, during the sick leave an employee is entitled to his/her salary. An employee with proven record of sickness is entitled to a paid sick leave at the rate of 75% of his/her salary upon which social insurance payments are calculated; for a period of 90 days, to be increased to 85% for the following 90 days. Sick leaves are payable up to 180 days. The right is reserved for the employee to benefit from his/her accumulated annual leaves as well as convert these into sick leaves if such a balance exists.

Additional Benefits in Egypt

Annual bonuses are common in Egypt.

Egypt Holidays

Egypt celebrates 12 national holidays:

  • 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

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Egypt

  • Working hours in Egypt

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

  • Egypt Holidays

    • 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
  • Egypt Tax

    The corporate income tax (CIT) rate in Egypt is 22.5% on the net taxable profits of a company.

    The above rate applies to all types of business activities except for oil exploration companies, whose profits are taxed at 40.55%. In addition, the profits of the Suez Canal Authority, the Egyptian Petroleum Authority, and the Central Bank of Egypt are taxable at a rate of 40%.

    The social insurance contribution of the employer is 18.75% of the total social insurance salary.

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