Offering American employers access to a workforce of more than 30 million people, Egypt has competitive labor costs and a deep talent pool in engineering, technology, customer service, and finance. However, hiring in Egypt comes with a substantially updated legal framework following the enactment of Labor Law No. 14 of 2025, which took effect on September 1, 2025, and replaced the previous law that had governed employment for more than two decades. This guide walks through the essential rules covering the minimum wage in Egypt, contracts, payroll, benefits, working hours, leave, onboarding, and termination so American employers can hire confidently and compliantly.
Key Facts About Employment in Egypt
Information Category | Details |
Minimum Wage in Egypt | Private sector: EGP 7,000 per month Public sector: EGP 8,000 per month |
Standard Workweek | 48 hours standard. |
Payroll Frequency | Monthly processing. |
Fiscal Year | July 1 through June 30. |
Main Employment Laws | Labor Law No. 14 of 2025 Social Insurance and Pensions Law No. 148 of 2019 Income Tax Law No. 91 of 2005 (as amended). |
Employment Contracts in Egypt
Under the updated employment law in Egypt, contracts must be written in Arabic (with a translation if needed) and prepared in four original copies for the employer, the employee, the National Organization for Social Insurance, and the Labor Office. Electronic signatures are now expressly permitted. The three recognized contract types under Egyptian law are:
- Indefinite-term (unlimited) contracts: The default arrangement when no end date is specified. These offer the highest level of employee protection and require formal written notice for termination, ranging from two to three months depending on length of service.
- Fixed-term (definite) contracts: This contract type must be in writing and end on the agreed date. If both parties continue working past the term without formal renewal, the contract automatically converts to indefinite, except where the employee is a foreign national. Early termination of this contract by the employer triggers compensation equal to one month's salary per year of service.
- Particular work contracts: This contract type is tied to the completion of a specific project, task, or assignment rather than a calendar period. The contract ends automatically when the agreed work is finished, and no separate notice is required if the scope was clearly defined at the outset.
Within any of these three categories, employers may also include a probation period of up to three months (only once per employee with the same employer), and the new law formally recognizes remote work, part-time, flexible-hours, and job-sharing arrangements, which must be documented in writing within whichever contract type applies.
Every contract must specify the job title and description, basic salary and any allowances, working hours, probation period (if any), notice period, benefits, and the workplace location or remote-work terms. Contracts should also outline any non-compete or confidentiality obligations.
Payroll, Taxes, and Social Security in Egypt
Payroll in Egypt is processed monthly. Employers withhold personal income tax at source and remit social insurance contributions to the National Organization for Social Insurance (NOSI). Egypt's fiscal year runs from July 1 to June 30, but the personal income tax year aligns with the calendar year, with annual reconciliation returns due by January 31 of the following year. There is no dedicated expat tax incentive scheme; foreigners working in Egypt are taxed on the same progressive brackets as Egyptians, although the Suez Canal Economic Zone offers corporate tax benefits to qualifying businesses.
Employer Contributions
Contribution Type | Rate | Notes |
Social insurance | 18.75% of the social insurance wage | Applies to wages between EGP 2,700 (minimum) and EGP 16,700 (maximum) per month from January 1, 2026 |
Health insurance premium | Approximately 75% of total premium | Mandatory coverage for employee and immediate family |
Training fund (firms with 30+ employees) | 0.25% of the minimum social insurance wage per employee | New methodology under Law 14/2025; capped between EGP 10 and EGP 30 |
Emergency Aid Fund | 1% of basic insured salary | Required by law |
Employee Contributions
Contribution Type | Rate | Notes |
Social insurance | 11% of the social insurance wage | Capped at the same EGP 16,700 monthly ceiling |
Health insurance premium | Approximately 25% of total premium | Withheld at source |
Income Tax Brackets
Annual taxable income (EGP) | Tax rate |
1 – 40,000 | 0% |
40,001 – 55,000 | 10% |
55,001 – 70,000 | 15% |
70,001 – 200,000 | 20% |
200,001 – 400,000 | 22.5% |
400,001 – 1,200,000 | 25% |
Above 1,200,000 | 27.5% |
Compensation & Benefits in Egypt
Compensation packages in Egypt typically combine base salary with statutory contributions and a mix of allowances that have become market expectations.
Benefit Type | Details |
Health insurance | Mandatory under the state-run system; many employers add private medical insurance as a top-up. |
Transportation allowance | Common, especially for staff in Cairo, Alexandria, and Giza. |
Meal allowance | Frequently offered; exempt from social insurance calculations up to 30% of total salary. |
Annual bonus | Discretionary, often paid before Eid al-Fitr; not legally required. |
Profit-sharing | Required for certain corporate structures. |
Mandatory annual raise | At least 3% of the social insurance wage, with an EGP 250 monthly floor |
Working Hours and Overtime in Egypt
The labor law in Egypt caps standard working time and requires premium pay for any hours beyond the limit. Most professional and office-based roles operate a 40 to 42-hour week even though the statutory ceiling is higher.
Item | Rule |
Daily working hours | Maximum 8 hours per day, excluding meal breaks |
Weekly rest day | At least one full paid day off, typically Friday |
Overtime cap | Total working hours not exceeding 10 hours per day |
Daytime overtime rate | 135% of normal hourly wage |
Nighttime overtime rate | 170% of normal hourly wage |
Public holiday work | Triple the regular daily wage, or the employee may elect a compensatory day off in writing |
Remote and flexible work | Formally recognized under Law 14/2025; contracts must document location, hours, and performance terms |
Leave and Statutory Time Off in Egypt
Egypt's new labor law expanded leave entitlements significantly, particularly for parents. All paid leave entitlements must be honored regardless of contract type, and unused annual leave may be carried forward for up to two years.
Leave Type | Entitlement |
Paid annual leave (year 1) | 15 working days (employees with six or more months of service receive the full 15 days) |
Paid annual leave (after year 1) | 21 working days per year |
Paid annual leave (after 10 years of service or aged 50+) | 30 working days per year |
Annual leave for disabled employees | 45 days from the start of employment |
Casual leave | 7 days per year (maximum two consecutive days per incident; deducted from annual leave) |
Sick leave | Paid sick leave with medical certification, on a tiered schedule per service cycle: 100% of wages for the first three months, 85% for the next six months, and 75% for the following three months; chronic illness is paid at 100% |
Maternity leave | 120 days fully paid (with at least 45 days post-delivery), available up to three times during employment, with no minimum service requirement |
Paternity leave | One paid day on the day of the child's birth, available up to three times |
Breastfeeding breaks | Two paid 30-minute breaks daily for two years after childbirth |
Hajj leave | One paid month, available once after five years of continuous service |
Egypt provides the following paid public holidays:
- Coptic Christmas Day(January 7)
- January 25 Revolution and National Police Day (January 29)
- Eid Al-Fitr (March 19–23)
- Sham El-Nessim (April 13)
- Sinai Liberation Day (April 25)
- Labor Day (May 7)
- Arafat’s Day (May 26)
- Eid Al-Adha (May 27–31)
- Islamic New Year (June 17)
- June 30 Revolution (June 30)
- July 23 Revolution Day (July 23)
- Prophet Muhammad’s Birthday (August 26)
- Armed Forces Day (October 6)
Hiring and Onboarding Process in Egypt
- Choose a hiring model: Decide between incorporating a local subsidiary or engaging an Employer of Record (EOR). For teams of one to fifteen people, an EOR is usually the most efficient route for American employers.
- Prepare the offer and contract: Draft a written employment agreement in Arabic (bilingual versions are common), specifying salary, role, hours, probation, and benefits.
- Collect documentation: Standard documents include the employee's national ID (Raqam Qawmi), graduation certificates, recent photographs, criminal record extract, and medical certificate.
- Register with the Tax Authority and NOSI: Employers must register a new employee with the Egyptian Tax Authority and the National Organization for Social Insurance within 15 days of the start date.
- Set up payroll: Open or use an existing local bank account, set up monthly social insurance and tax withholding, and ensure salary is transferred within seven days of the pay-period end.
- Onboard the employee: Provide orientation, share workplace policies in Arabic, and document any remote-work or flexible arrangement clauses required by Law 14/2025.
- Foreign hires only: If sponsoring a non-Egyptian worker, the employer must obtain a work permit from the Ministry of Manpower, secure security clearance, and meet quota and Egyptian-assistant training requirements. Note that work permits Egypt issues are tied to a specific employer and typically require annual renewal; this adds four to eight weeks to onboarding.
Termination & Notice Periods in Egypt
The new labor law significantly tightened termination rules and ended several practices that previously gave employers more flexibility. Pre-signed resignation forms are no longer valid, and resignations now require government authentication, with employees given ten days to retract them.
- Notice for indefinite contracts: Employers must give two months' written notice for employees with less than ten years of service and three months for those with ten or more years.
- Notice for fixed-term contracts: The contract ends naturally on its expiry date, but early termination by the employer triggers compensation of one month's salary for each year of service.
- Form of notice: Notice must be written and delivered in person or by registered mail. Full salary must be paid through the notice period.
- Valid grounds for dismissal: Termination must rest on a legitimate reason, and arbitrary dismissals are explicitly prohibited. Employers cannot dismiss employees during sick leave (until both sick and annual leave are exhausted, plus 15 days' notice), during maternity leave, or immediately after a woman returns from maternity leave.
- Severance pay: Employees dismissed without a legitimate reason are generally entitled to compensation determined by the labor courts.
- Specialized labor courts: Since October 2025, labor courts have been required to issue rulings within three months, increasing the cost to employers of getting termination procedure wrong.
- Records retention: Employers must keep digital or paper payroll and personnel records for five years after employment ends.
Useful Resources
Disclaimer: This article is provided for informational purposes only and should not be relied on as legal advice or used as a substitute for advice from qualified legal counsel.
