Easily manage employment in Egypt

Payroll services in Egypt

Egypt has a growing economy with key industries in agriculture, energy, and manufacturing. With specific labor laws and tax regulations, employers in Egypt must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Egypt

Employers in Egypt must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Egypt’s minimum wage is EGP 3,500 per month for private sector employees.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Egypt is 48 hours, typically spread over five or six days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated based on labor regulations.

Taxation and social security contributions

• Personal income tax: Egypt has a progressive income tax system with rates ranging from 0% to 25% depending on income levels.
• Employer contributions:
• Social security: 18.75% of the gross salary.
• Employee contributions:
• Social security: 11% of the gross salary.
• Corporate tax: The corporate income tax rate in Egypt is 22.5%.
• Tax reporting: Employers must file payroll taxes and contributions with the Egyptian Tax Authority and Social Insurance Authority regularly.

Payroll compliance in Egypt

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Egypt’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

• Payroll frequency: Salaries are generally paid monthly.
• Currency: Payroll in Egypt is processed in Egyptian Pounds (EGP).
• Tax reporting: Employers must file payroll taxes and contributions with the Egyptian tax authorities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Egypt with Remote

Managing payroll in Egypt requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.