Payroll and Benefits Guide Egypt
Last updated: Mar 03, 2026
Contribution
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Employer Payroll Contributions
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18.75%
(21% for Members of the Board of Directors)
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Social Security (Minimum taxable wages is 2,700 EGP and maximum is 16700 EGP annually )
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1.00%
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Emergency Relief (ER) Fund- 1.00% of the basic social insurance salary (2,540 EGP)
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19.75%
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Total Employment Cost
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Employee Payroll Contributions
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11.00%
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Social Security (Minimum taxable wages is 2,300 EGP and maximum is 14,500 EGP annually)
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11.00%
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Total Employee Cost
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| Employee Income Tax | |
| Net income not exceeding 600,000 EGP | |
| 0.00% | Up to 40,000 EGP annually |
| 10.00% | 40,001 EGP – 55,000 EGP annually |
| 15.00% | 55,001 EGP – 70,000 EGP annually |
| 20.00% | 70,001 EGP – 200,000 EGP annually |
| 22.50% | 200,001 EGP – 400,000 EGP annually |
| 25.00% | Over 400,000 EGP annually |
| Net income more than 600,000 EGP and not exceeding 700,000 EGP | |
| 10.00% | Up to 45,000 EGP annually |
| 15.00% | 45,001 EGP – 60,000 EGP annually |
| 20.00% | 60,001 EGP – 200,000 EGP annually |
| 22.50% | 200,001 EGP – 400,000 EGP annually |
| 25.00% | Over 400,000 EGP annually |
| Net income more than 700,000 EGP and not exceeding 800,000 EGP | |
| 15.00% | Up to 60,000 EGP annually |
| 20.00% | 60,001 EGP – 200,000 EGP annually |
| 22.50% | 200,001 EGP – 400,000 EGP annually |
| 25.00% | Over 400,000 EGP annually |
| Net income more than 800,000 EGP and not exceeding 900,000 EGP | |
| 20.00% | Up to 200,000 EGP annually |
| 22.50% | 200,001 EGP – 400,000 EGP annually |
| 25.00% | Over 400,000 EGP annually |
| Net income more than 900,000 EGP and not exceeding 1,200,000 EGP | |
| 22.50% | Up to 400,000 EGP annually |
| 25.00% | Over 400,000 EGP annually |
| Net income more than 1,200,000 EGP | |
| 25.00% | Up to 1,200,000 EGP annually |
| 27.50% | Over 1,200,000 EGP annually |
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage in Egypt is currently set at 7,000 EGP per month.
The minimum hourly wage for part-time workers has been set at 28 EGP
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Egypt, the common payroll frequency is monthly, it is possible to offer a bi-monthly payroll schedule as well.
13th Salary
In Egypt, there is no legal requirement for 13th-month payments.
Working Hours
General
The standard working week in Egypt consists of 8 hours a day and 40 hours per week.
During the period of Ramadan, the working day should be reduced made accommodate fasting hours, with usually 6 daily hours in total or less being worked. Many companies will also allow remote working during this period.
Overtime
- Maximum Ordinary Hours (Labour Law Article 80): The standard work limit is 8 hours per day or 48 hours per week, excluding mandatory break/meal times (which must be at least one hour and taken after a maximum of five continuous hours of work).
- Note: Working hours for Muslim employees are typically reduced to 6 hours per day or 36 hours per week during the holy month of Ramadan.
- Daily Overtime Cap: Total working time, including overtime, is strictly limited to 10 hours per day. This generally restricts overtime to a maximum of 2 hours per day.
- Authorization: Overtime is permitted in exceptional circumstances. The employer must maintain accurate records of all overtime hours worked.
- Exemptions: Senior managerial or supervisory employees are generally exempt from the statutory working hours and overtime provisions.
Mandatory Overtime Pay Rates (Labour Law Article 121 / 85)
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s regular hourly wage. The rate varies based on the time of day and the day of the week.
| Day/Condition | Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Daytime Overtime | +35% of the regular hourly wage. | 135% | Applies to extra hours worked during the day. |
| Nighttime Overtime | +70% of the regular hourly wage. | 170% | Applies to extra hours worked during the night (typically 7:00 PM to 7:00 AM). |
| Weekly Rest Day (Usually Friday) | +100% of the regular hourly wage. | 200% | The employee is entitled to this premium PLUS the employer must grant an alternative rest day within the following week. |
| Official Public Holiday | +200% of the regular hourly wage. | 300% | Compensation for work on a statutory public holiday is typically paid at three times the regular rate. |
Compensation on Rest Day/Holiday: Working on a weekly rest day or official holiday requires the premium payment for the hours worked and the compensation (double or triple pay) is calculated on the employee’s daily wage or equivalent hourly rate.
Leave
Annual Leave (vacation)
In Egypt, employees are entitled to 21 working days of paid annual leave per year if employed for at least six consecutive months.
It increases to 30 days of paid annual leave for employees who have completed ten years of consecutive employment or employees over 50 years of age.
PTO Carryover
Unused statutory annual leave must be preserved and cannot be deleted by policy; carryover up to two years is recognized under the updated legal framework.
- Zapeo states that leave does not fall away. It is paid out every 3 years.
Public Holidays
Each year the government may decide if public holidays falling on weekends will be moved to a weekday or will be lost.
Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 7 January 2026 | Wednesday | Coptic Christmas Day | Standard holiday |
| 29 January 2026 | Thursday | Revolution Day & National Police Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr – Day 1 | Standard holiday |
| 21 March 2026 | Saturday | Eid al-Fitr – Day 2 | Standard holiday |
| 22 March 2026 | Sunday | Eid al-Fitr – Day 3 | Standard holiday |
| 13 April 2026 | Monday | Sham El Nessim (Spring Festival) | Standard holiday |
| 25 April 2026 | Saturday | Sinai Liberation Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 26 May 2026 | Tuesday | Arafat Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha – Day 1 | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha – Day 2 | Standard holiday |
| 29 May 2026 | Friday | Eid al-Adha – Day 3 | Standard holiday |
| 17 June 2026 | Wednesday | Islamic New Year | Standard holiday |
| 30 June 2026 | Tuesday | 30 June Revolution Day | Standard holiday |
| 23 July 2026 | Thursday | Revolution Day (23 July) | Standard holiday |
| 25 August 2026 | Wednesday | Prophet Muhammad’s Birthday (Mawlid Al-Nabi) | |
| 06 October 2026 | Tuesday | Armed Forces Day |
Sick Days
An employee is entitled to up to 6 months of paid sick leave covered by social security. The employee must provide a professional medical certificate confirming the sickness.
For the first 90 days of sick leave, the employee is entitled to 75% of the regular salary rate. After that, this increases to 85% of the normal rate of pay for 90 days.
Maternity Leave
Female employees who have been employed for ten consecutive months are entitled to 90 days of paid maternity leave. Maternity leave pay is 100% of salary, covered by Egyptian social security at 75% of the social insurance salary (10,900*75%) and by the employer for 25% of the salary . It is common for the employer to cover the whole 100% for the entire 3 months.
Employees are entitled to take three periods of maternity leave during their total employment service.
Upon return to the workplace, the woman is entitled to two thirty-minute nursing breaks or a combined one-hour nursing break each day for up to two years after the date of birth.
Paternity Leave
There are no provisions in the law regarding paternity leave.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, on approval of the employer and employee for the following:
- Casual leave – Employees are entitled to up to six days off from work per year and are not required to state a reason for taking the leave. Employees are allowed to take a maximum of two days per leave. Casual leave counts as part of annual leave.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination.
One Project Base contract: Can be ended by the end of the project, the employee will get paid for his last month salary & PTO & Notice period (if mentioned in the contract)
Definite Contract: The rest of the contract & PTO & Notice period (if mentioned in the contract).
Indefinite Contract: Severance Pay, 2 Months notice period, PTO.
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.
The court can be involved if the employee doesn’t agree on the Indefinite contract cancellation and the compensation package, or if the employer terminated the employee without giving him his rights.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salary must be paid at least once a month for monthly-paid employees; for non-monthly wage arrangements, payment must be at least weekly. | When employment ends, all earned wages and other entitlements must be paid; while the statute does not clearly state a fixed “within X days” for every case, the employer must clear obligations upon termination in compliance with the labour law. | Payment to the employee must be in Egyptian pounds (unless otherwise agreed) and may be by bank transfer or other method agreed. |
Notice Period
In Egypt, the periods of notice are determined according to the employment agreement/contract and collective agreement in place and the length of service by the employee. If the employee has completed less than ten years of service, the notice period is two months increasing to three months for employees with more than ten years of service. No notice is required during the probation period.
Severance Pay
For a definite or indefinite contact type, there is no statutory severance pay unless the employee’s termination is unjustified or the employer has voluntarily provided it. For a project-based contract, there is no statutory severance pay unless the employer voluntarily provided it.
Probation Period
In Egypt, the probation period is fixed by the employment contract and by law, cannot exceed three months.
Setting Up a Business
Setting up a legal entity
the process of setting up a limited liability company is as follows
- Sign up on the General Authority for Investment and Free Zones website here.
- Submit several company name proposals, one of which will be approved upon incorporation.
- Submit the following documents:
- A copy of the power of attorney (from all 2-50 partners in the case of a limited liability company): This stipulates the establishment of companies and the signing of the articles of incorporation before the real estate registry.
- Photocopies of identification (valid and clear) for founders or partners: This will be a national number for Egyptians and a passport for foreigners.
- An official extract from the register of accountants and auditors: This should be addressed to the Investment Authority stating the eligibility of the company’s auditor to review and approve the budgets of the money companies for the first time, or the original declaration of acceptance of an appointment in the event that this certificate was previously submitted to the Authority.
- A copy of the registration card in the Bar for the lawyer who ratifies the contract before the Bar Association.
- For foreign shareholders, investor identification forms: This should be in the form of a document and a copy should also be provided on CD.
- A specification of the name and address of the company’s legal advisor: This is provided that the degree of registration is not less than that of an appeal attorney.
- Photocopies of the identity proof for the agent: This will be a national number for Egyptians and a passport for foreigners (a valid residence permit is required).
- Approval of the competent authority if any of the company’s purposes requires obtaining special approval in accordance with the provisions of the applicable laws.
Registration as an employer
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.
Employers in Egypt are encouraged to give jobs to locals rather than employing foreigners, which can impact work permits. Egypt also has a quota system, so limits on work permits could impact your workers.(e.g. non-Egyptian workers in any company should not exceed 10% of the total staff of semi-skilled or unskilled workers. The limit for skilled workers is 25%. The total compensation of foreign employees must not exceed 35% of your total payroll).
Fixed-term contracts are allowed for up to 5 years and employees who continue to work after 5 years will be considered to have indefinite-term contracts.
Employers must register employees with the National Authority of Social Insurance prior to their start date
New Employee Registration
Employers must register employees with the National Authority of Social Insurance prior to their start date
Immigration
Foreigners are strictly prohibited from carrying on any work in Egypt without a valid work permit. A work permit for Egypt is granted by the Ministry of Manpower in Egypt and is usually for one year.
Before the authority issues a work permit for foreigners, a labor market test must prove that there are no local residents eligible for that position. When a work permit is finally granted, the applicant must train at least two local Egyptian nationals to work in the same position. Applying for a work permit in Egypt typically takes one to three months until the applicant can enter Egypt. It may take a further two to four months before the process is completed.
Egypt offers several types of visas, including the following:
- Work visa: Once a foreign national gets a work permit, their visa, such as a temporary/tourist visa, will be converted into a work visa.
- Temporary/tourist visa: This option is a renewable single-entry 30-day tourist visa that individuals can get when arriving at Egyptian airports. It’s also the visa individuals obtain for a job.
- Ordinary visa: An ordinary visa is valid for three to five years and allows an employee’s spouse to have a resident permit for the amount of time identified on their work permit.
- Special visa: The special visa is for expats born in Egypt before May 26, 1952, or individuals who have lived in Egypt for more than 20 years from that date. It’s valid for ten years and can be renewed.
VAT
General
The standard rate of VAT in Egypt is 14.00%.
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Payroll contributions and personal income tax rates have been updated.
Questions & Answers
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Payroll and Benefits Guide
in Egypt
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 7 January 2026 | Wednesday | Coptic Christmas Day | Standard holiday |
| 29 January 2026 | Thursday | Revolution Day & National Police Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr – Day 1 | Standard holiday |
| 21 March 2026 | Saturday | Eid al-Fitr – Day 2 | Standard holiday |
| 22 March 2026 | Sunday | Eid al-Fitr – Day 3 | Standard holiday |
| 13 April 2026 | Monday | Sham El Nessim (Spring Festival) | Standard holiday |
| 25 April 2026 | Saturday | Sinai Liberation Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 26 May 2026 | Tuesday | Arafat Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha – Day 1 | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha – Day 2 | Standard holiday |
| 29 May 2026 | Friday | Eid al-Adha – Day 3 | Standard holiday |
| 17 June 2026 | Wednesday | Islamic New Year | Standard holiday |
| 30 June 2026 | Tuesday | 30 June Revolution Day | Standard holiday |
| 23 July 2026 | Thursday | Revolution Day (23 July) | Standard holiday |
| 25 August 2026 | Wednesday | Prophet Muhammad’s Birthday (Mawlid Al-Nabi) | |
| 06 October 2026 | Tuesday | Armed Forces Day |
Is backdating an employment agreement legal?
In Egypt, it is legal. Backdating must be done within the calendar month, and the contract must be signed before any payment can be made to the employee.
Hi
Two questions.
Paid time off and notice periods change for employees with ten or more years of service. Paid time off increases to 30 days of paid annual leave and the notice period increases to 3 months.
Should pay in lieu of notice include allowances?
Hi Josephine,
Yes, pay in lieu should cover all of the regular salary items.
Hi, ARe bonus payments taxable?
Hello, bonuses are taxable the same as salary.
Hello,
I’ve received contradictory information related to overtime in Egypt:
During day:
During night:
Thank you in advance for clarifying!
Hi,
The standard law on this is that employees who work more than 40 hours a week should receive overtime of 135.00% of their regular salary rate of pay during daylight hours and 170.00% of their regular salary rate of pay for work at night. However, when the work takes place on the employee’s rest day, the employer must pay double the day’s salary to the employee (and additionally the employee will be given another day to rest in lieu of the day of rest during the following week). Please note that where there is a Collective Agreement in place this could alter the % that is paid.
Thank you for replying!
So with a concrete example, my hourly pay is EGP200. I worked 44 hours this week.
My normal time pay is: 40*200 = 8000 EGP
My overtime pay is: 4*200*135% = 1080 EGP
Is this correct?
Thank you very much
This appears to be correct in a general sense, however, I highly recommend you check with your payroll team to verify your calculation and align to what is agreed within your employment contract.
is gift vouchers taxable in payroll?
If it’s a non monetary gift, it will be fringe benefit tax.
Hi team, any light on requirements around annual salary restrictions % requirements and if it has to be done by a specific month of the year?
Please clarify what is meant by annual salary restrictions.
Yearly increases that are mandatory by the government
An annual increase is mandatory with two options: a 7% raise based on the social insurance salary, or a 3% increase tied to the contractual salary. The increment can be distributed on January or gradually throughout the year. If companies already give an annual salary increase then this increase is not neccessary as long as the minimum mentioned above was given.
Hi there!
Is overtime pay considered part of the salary and therefore taxable?
Yes, all forms of remuneration, including overtime are subject to taxation under Egyptian law