Payroll and Benefits Guide - Egypt

Egypt
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Currency

Egyptian Pound (EGP)
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Capital

Cairo
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Employer Taxes

19.75%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 July – 30 June

Fun Facts

Egypt is home to one of the Seven Wonders of the Ancient World, the Great Pyramid of Giza.

Egypt has the longest river in the world, the Nile River, which stretches over 6,650 kilometers

Egypt is home to the largest collection of ancient monuments and ruins in the world, including the temples of Luxor and Karnak.

The Egyptian alphabet is one of the oldest known writing systems in the world.

Egyptians invented paper around 2400 BCE using papyrus.

The Red Sea in Egypt is a popular destination for diving and snorkeling enthusiasts.

Egypt

Contributions

Employee Payroll Tax

Social Security11.00%

Employer Payroll Tax

Social Security contributions18.75%
For Members of the Board of Directors.21%
Emergency Relief (ER) Fund1.00%

Payroll

Payroll Cycle

Payroll in Egypt is done on a monthly basis, and the due date is the fifth of the following month.

13th Salary

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

Work Hours and Week

In Egypt, a typical workweek is made up of 8 hours each day and 40 hours per week.

Overtime

Overtime is defined as any hours worked in excess of the normal workweek and is governed by the employment contract and collective agreements.

Overtime pay for workers who put in more than 40 hours per week should be 135.00% of their regular salary rate during the day and 170.00% of their regular salary rate at night.

Egypt

Leave

Paid Time Off

Employees in Egypt who have been employed for at least six months straight are entitled to 21 days of paid yearly leave each year.

For workers who have worked ten years in a row or who are over 50, the amount of paid yearly leave is increased to 30 days.

Public Holidays

There are 21 public holidays in Egypt.

Public holidays that fall on weekends may be lost, relocated to a weekday, or both depending on the government’s discretion each year.

The moon cycle determines several religious holidays, which will be confirmed closer to the celebration.

Sick Days

A professional medical certificate must be presented and the employee is entitled to up to 6 months of paid sick leave.

The employee is entitled to 75% of their regular wage for the first 90 days of sick leave. Following that, this rises to 85% of the regular pay rate for 90 days.

Maternity Leave

90 days of paid maternity leave and 45 days after a baby is born are available to female employees who have worked for ten consecutive months.

During the course of their entire employment, employees are permitted to take up to two periods of maternity leave.

For up to two years following the date of birth, the woman is entitled to two thirty-minute nursing breaks or a total of one hour of nursing time per day when she returns to work.

Paternity Leave

Paternity leave is not covered by the law in any way.

Parental Leave

Mothers must be granted 24 months of unpaid leave for each child by employers with more than 50 employees.

Female employees may take up to two years of unpaid leave to care for their child if the company has at least 50 employees. During the course of their employment, an employee is permitted to take this kind of leave twice.

Termination

Termination Process

Depending on the type of contract and the grounds for termination, the termination procedure differs depending on how the Employment Agreement and Collective Agreement are in place.

A committee at the Ministry of Manpower and Migration with judicial authority must hear an employer’s request to fire an employee. After 15 days, the committee must decide whether to grant the proposal. The employee has the option to sue the employer in court if they decide to terminate their employment.

Notice Period

The length of the employee’s service as well as the employment contract, collective bargaining agreement, and other factors influence the notice periods in Egypt. The notice period is two months for employees with less than ten years of service completed and increases to three months for those with more than ten years of service.

Severance Pay

There is no required severance pay unless the company willingly pays it if the employee’s departure was not warranted.

Probation Period

Probation Period

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

Immigration

Without a current work permit, foreigners are severely forbidden from performing any type of employment in Egypt. The Egyptian Ministry of Manpower issues work permits for Egypt, which are ordinarily valid for a year.

VAT

In Egypt, the usual VAT rate is 14.000%.