Hire employees and contractors in Egypt

Remote’s guide to employing in Egypt.

  • Capital city

    Cairo

  • Currency

    Egyptian pound
    (£, EGP)

  • Population size

    101,576,517
    (est. 2021)

  • Languages spoken

    Arabic

  • Availability

    Remote-Owned Entity
    Coming in Q2 2022

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

As the land of Pharaohs, deserts, mummies, pyramids, and one of the world’s most fascinating ancient civilisations, Egypt has long been a tourism hotspot.

The Arab Republic of Egypt has changed significantly over the last century, evolving into a modern economic powerhouse (the 2nd largest in Africa) with expansive growth across the petroleum, and agricultural industries.

  • Capital city

    Cairo

  • Currency

    Egyptian pound
    (£, EGP)

  • Languages spoken

    Arabic

  • Population size

    101,576,517 (est. 2021)

  • Ease of doing business

    Medium

  • Cost of living index

    30.10 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    14%

  • GDP - real growth rate

    5.6% (2019)

Grow your team in Egypt with Remote

Remote currently offers contractor payment and management services in Egypt. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.

Risks
of misclassification

Egypt, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Egypt

The Egyptian Labor Law of 2003 spells out strong provisions for employee protections and workers’ rights designed to create an equitable environment for Egypt’s workforce of 29 million.

Employees in Egypt enjoy protections against discrimination based on age, religion, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Egypt.

Minimum Wage

Minimum wages are only specified for public sector employees and are currently pegged at LE 2,400 ($153.24) per month.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Competitive benefits package in Egypt

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Egypt are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

In order to access specific information about our benefits packages in Egypt, start onboarding your first employee with Remote today.

Taxes in Egypt

Learn how employment taxes affect your payroll and your employees’ paychecks in Egypt.

  • Employer

    • 18.75% - Social security

    • 1% - Unemployment benefit contribution

  • Employee

    • 11% - Social security contribution

Types of leave

Paid time off

Employees are entitled to 21 days of paid leave annually after spending six months working with an employer.

Public holidays

There are 14 public holidays during which employees are entitled to paid time off work. If required to work on a public holiday, employees are entitled to three times their regular wage.

Sick days

Employees are entitled to 180 days of paid sick leave annually, compensated at 75% of the employee’s normal wages for the first 90 days of the illness and at 80% for the next 90 days.

Maternity leave

Female employees who’ve been working with an employer for at least 10 months are entitled to three months of paid maternity leave for up to three births, with maternity benefits equivalent to 75% of the employee’s last salary.

Postpartum employees can take an hour or two half-hours off every day to breastfeed for 24 months post-delivery. Additionally, organizations with 100 or more employees are mandated to provide in-house nurseries or foot the nursery costs for employees’ babies until they reach school age.

Paternity/Parental leave

Fathers are not entitled to any statutory parental leave under Egyptian law, but mothers can take up to 24 months of unpaid leave for each children.

Study leave

Egyptian labor law demands that employers honor any study leave agreements made during collective bargaining but doesn’t specify duration or circumstances.

Other leave

  • Adoption: Adoptive parents are entitled to 15 days of leave, from the day their child is handed over to their legal custody.
  • Casual leave: Employees can take up to six days of casual leave annually, in installments of two days at a time, which will be subtracted from the employee’s annual leave entitlement.
  • Pilgrimage leave: After spending five years with an employer, employees can request an entire month of fully paid pilgrimage leave, although only once during the employee’s tenure.

Employment termination

Termination process

An employee contract can only be terminated if it runs past the full term, or if just cause is established (such as dishonesty, negligence, fraud, or any other work-related offences). Otherwise, an employee terminated unfairly will be entitled to compensation proportional to the tenure served.

Notice period

Notice periods in Egypt depend on how long an employee has worked with an employer, ranging from two months for employees who’ve been employed for less than 10 years to three months for any tenure beyond that.

Severance pay

Severance payments are not obligatory under Egyptian labor law except in cases of unfair termination. If an employer terminates an indefinite contract without providing just cause, the employee is entitled to two months’ pay for every year worked.

For definite term contracts terminated unfairly before they’re due to expire, an employee is entitled to receive any remaining pay stipulated under the contract.

Probation periods

Probation periods can last up to three months.

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