Hiring guide in Egypt

What should I know about hiring in Egypt?

One of the first steps you should take if you want to do business in Egypt, whether to set up a new operation or to grow an existing one, is to find qualified local workers to join your team. But before you begin the recruitment process, you must learn about the local culture, labour laws, and other factors that may affect your hiring decisions. 

Working hours, wages, and other aspects of the workplace are all strictly governed by Egyptian law. These laws safeguard employees’ legal rights, and employers must honour them. 

In addition to paying their employees a fair wage and allowing them a reasonable number of hours per week to work, businesses are responsible for ensuring a safe workplace. When paying employees in Egypt, businesses must withhold a portion of each paycheck for the government and the social security system.

Why is Egypt a good choice for finding remote employees?

Egypt is a desirable location for companies seeking to hire remote workers due to the country’s strategic location and rich cultural heritage. Egypt is home to a sizable and diverse workforce, many members of which are well-versed in the English language. 

Its high number of college graduates in technically- and business-oriented fields makes it a promising source of remote talent. In addition, the Egyptian government provides tax breaks and subsidies to businesses that employ remote workers. 

Egypt is an excellent option for companies searching for remote workers due to the country’s large pool of skilled workers, cultural similarities, and supportive government policies.

How can Native Teams help you hire in Egypt?

Working with a team that is familiar with the local market and can guide you through the recruitment process is crucial if you want to hire the best candidates. Our employer of record services covers the gamut of helping you find and hire new staff to handle their financial needs, including payroll, taxes, and benefits, and ensuring that you fully comply with Egyptian regulations. With Native Team on your side, you may be able to meet the legal requirements that are essential to running a successful business.

 Hire your first Egyptian employee with Native Teams.

Legal requirements for hiring in Egypt

Contributions & taxes

Employer tax

Employers’ total employment costs are 19.75%.

Corporate tax

Egypt’s corporate income tax (CIT) rate is 22.5% for a company’s net taxable profits.

Employee tax

The total employee cost is 11% of their salary.

Income tax

Up to 15,000 EGP: 0.00%;

• From 15,001 EGP to 30,000 EGP: 2.50%;
• From 30,001 EGP to 45,000 EGP: 10.00%;
• From 45,001 EGP to 60,000 EGP: 15.00%;
• From 60,001 EGP to 200,000 EGP: 20.00%;
• From 200,001 EGP to 400,000 EGP: 22.50%;
• Over 400,000 EGP: 25.00%.

To calculate the salary and taxes in Egypt please click here.

Payroll cycle

Payroll is processed on a monthly basis in Egypt, and the payment deadline is the fifth of the following month.

Is there a 13th salary in Egypt?

13th-month payments are not required by law in Egypt.

Labor rules

Probation period

The employment contract establishes the probationary term in Egypt and is limited to 3 months by law.

Notice period 

Notice requirements in Egypt are established by the employee’s length of service, the terms of their employment contract, and any applicable collective bargaining agreements. For personnel with fewer than 10 years of service, the required notice period is 2 months; for those with 10 years or more, the required notice period is 3 months.

Severance period

Unless the employee’s termination is deemed unreasonable or the employer has voluntarily granted severance pay, the employee is not entitled to compensation under state or federal law.

Working hours

In Egypt, a full work week is typically five 8-hour days from Sunday through Thursday, with a maximum of 6 full days, with Saturday typically counting as the sixth.

Leave and benefits

Public holidays

Egypt celebrates 14 national holidays:

1. Orthodox Christmas Day
2. January 25 Revolution Day
3. National Police Day
4. Sinai Liberation Day
5. Labour Day
6. Sham Ennessim
7. Eid al-Fitr
8. June 30 Revolution
9. June 30 Uprising in Egypt
10. Eid al-Adha (3 days)
11. Revolution Day
12. Islamic New Year
13. Armed Forces Day
14. Prophet’s Birthday

Sick leave

Employees can take up to 6 months of paid sick leave but must provide a doctor’s note verifying their illness.

Maternity leave & paternity leave

After working for the company for 10 months, women are eligible for 90  days of paid maternity leave and an additional 45 days after their child’s birth. Employees are eligible for 2 maternity leaves during their time on the job. Once back at work, the woman is eligible for two 30-minute nursing breaks or one 1-hour break per day for up to two years following the date of birth.

The law makes no mention of paternity leave.

Other leave

Casual leave

Employees can take up to six days of unpaid time off every year.

What are the minimum vacation days?

If you work in Egypt for at least 6 months, you are entitled to 21 days of paid vacation per year. If you’re over the age of 50 or have worked for the same company for 10 years, you’re eligible for an additional 10 days of paid vacation.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Egypt, upload the documents from our onboarding list (relocation to log in/pricing). 

Why use Native Teams for hiring in Egypt?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.