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Egyptian Pound (EGP)
EOR IN Egypt
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A guide to employing and growing your team in Egypt
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Egypt’s labor market is governed primarily by Labor Law No. 12 of 2003, with significant updates from Labor Law No. 14 of 2025 coming into full effect in 2026. The 2026 landscape focuses on unifying public and private sector standards and digitizing payroll via the National Social Insurance Authority. As of March 2025 and continuing through 2026, the national minimum wage for the private sector is EGP 7,000 per month. Additionally, Egypt has introduced a mandatory hourly minimum for part-time workers of EGP 28 per hour to formalize gig and non-traditional work.
Employer Contributions
Social Security (Total): 18.75% (Calculated on the insurable wage)
Pension/Old Age: 12%
Health Insurance/Illness: 3.25%
Unemployment: 1.0%
Work Injury: 1.5% – 2.0%
Training Tax: 0.25% of monthly payroll (For firms with 30+ employees)
Profit Sharing: Mandatory 10% of annual net profits (Capped at one year’s salary per employee)
Total Employer Contribution: ~19% – 21%
Employee Payroll Taxes
Social Security: 11.0% (Deducted from gross insurable wage)
Pension: 9%
Health/Unemployment/End of Service: 2%
Income Tax: Variable (Based on progressive brackets)
Total Employee Contribution: 11.0%
Employee Income Tax Rates
Egypt uses a progressive tax system based on annual income. In 2026, a personal exemption of EGP 20,000 is applied to the gross income before brackets are calculated.
Up to EGP 40,000: 0%
EGP 40,001 – EGP 55,000: 10%
EGP 55,001 – EGP 70,000: 15%
EGP 70,001 – EGP 200,000: 20%
EGP 200,001 – EGP 400,000: 22.5%
EGP 400,001 – EGP 1,200,000: 25%
Above EGP 1,200,000: 27.5%
Statutory Leave
Employees are entitled to 21 days of paid annual leave after six months of service. This increases to 30 days once an employee reaches 50 years of age or completes 10 years of service with any employer. Egypt observes approximately 18 to 20 public holidays per year. Employees also have the right to 7 days of “casual leave” (deducted from the annual total) for unexpected personal emergencies, capped at 2 days per incident.
Pregnancy and Maternity Leave
Female employees who have spent at least 10 months with an employer are entitled to 4 months (120 days) of fully paid maternity leave. This leave can be taken up to twice during the employee’s entire tenure with the company. Employers with 50+ staff must also provide up to two years of unpaid leave for childcare (limited to twice per career).
Paternity Leave
While historically not a statutory requirement in the private sector, many 2026 employment contracts now include 3 days of paid paternity leave as a standard market benefit to align with evolving regional norms.
Work-Related Injury Leave
Sick Leave: Employees can take up to 6 months of sick leave: the first 90 days are paid at 75% of the social insurance wage, and the next 90 days are paid at 85%.
Hajj/Pilgrimage Leave: A one-time 30-day paid leave for employees with 5+ years of service.
Termination Process
Termination in Egypt is strictly regulated. “At-will” termination does not exist; an employer must prove “gross misconduct” or “poor performance” through a formal disciplinary committee. If a contract is terminated without “just cause,” specialized labor courts (established in late 2025) can order compensation typically ranging from two months’ salary per year of service.
Notice Period
Notice periods depend on the duration of employment:
Less than 10 years of service: 2 months’ notice
More than 10 years of service: 3 months’ notice
During the notice period, the employee is entitled to one full day off per week (or 8 hours total) to search for new employment.
Probation Period
The maximum probation period is 3 months. Under Article 90 of the 2025 Labor Law, probation can only be applied once per employee for a specific employer. Any attempt to extend probation beyond 3 months is legally void, and the employee is automatically considered permanent thereafter.