TL;DR, Hiring in Egypt
- Fully-loaded employer cost: 18.75% on social insurance up to EGP 14,500/month wage (2025), capped
- Annual contribution ceiling rises ~15%/yr by statute — EOR cost models must include the escalator
- Strict end-of-service gratuity rules; courts favor employees in disputed terminations
- Mandatory profit-sharing of 10% of net profits for companies with 50+ employees
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Statutory employer costs in Egypt
In Egypt, employer statutory contributions to the National Social Insurance Authority (NSIA) total 18.75% on the contributory wage, capped at EGP 14,500/month (2025), composed of: old-age/disability/death 12%, sickness 3.25%, work-injury 1.5%, and unemployment 2%. Above the cap only voluntary supplementary insurance applies. The annual ceiling rises automatically by ~15% each January under Law 148/2019. End-of-service gratuity, mandatory profit-sharing (10% for 50+ employees), and stringent termination protection are the dominant hidden costs.
| Contribution | Employer rate | Notes |
|---|---|---|
| NSIA – old-age, disability, death | 12.0% | Employer share. Capped at EGP 14,500/month wage (2025). |
| NSIA – sickness insurance | 3.25% | Employer share. Capped at NSIA ceiling. |
| NSIA – work injury insurance | 1.5% | Employer-only. Capped at NSIA ceiling. |
| NSIA – unemployment | 2.0% | Employer share. Capped at NSIA ceiling. |
Mandatory employee benefits
Beyond statutory contributions, Egypt law requires the following benefits the employer must fund.
- Annual leave
- Labour Law 12/2003 Art. 47: 21 days after 1 year, 30 days after 10 years or for employees aged 50+. Pro-rated between 6–12 months tenure.
- Public holidays
- ~15 days including Eid al-Fitr (3 days), Eid al-Adha (4 days), Coptic Christmas (1), Sham El-Nessim, Revolution Day (Jan 25), and 6 October Armed Forces Day.
- Sick leave
- First 90 days: 75% of insurable wage; next 90 days: 85%. Funded by NSIA, not employer (provided contributions are current).
- Profit sharing
- Mandatory 10% of distributable net profits for joint-stock companies with 50+ employees (Companies Law 159/1981 Art. 41). Distributed to employees based on tenure and grade. Capped at 12 months' salary per employee.
Termination, notice and severance
Probation
Maximum 3 months under Labour Law 12/2003 Art. 33. Either party may terminate without notice during probation; one probation per employee per employer.
Notice period
2 months for tenure under 10 years; 3 months for 10+ years. Pay in lieu permitted. Must be in writing.
Severance
End-of-service gratuity: at least 2 months' salary per year of service if termination is by employer without just cause, or by mutual agreement. For fixed-term contracts terminated early, employer owes salary for the remainder of the term. Indefinite-contract dismissals require employer to prove just cause through the Tripartite Labour Committee or face 2-month-per-year compensation plus moral damages.
Common compliance pitfalls
- The NSIA contribution ceiling rises ~15% annually under Law 148/2019. EOR cost models that lock in the current EGP 14,500 cap will under-cost contributions in years 2+.
- Companies with 50+ employees must distribute 10% of distributable net profits to employees, capped at 12 months' salary per person. EORs hosting your hires count their own employee base — your hire shares in their EOR-level profit-sharing pool, which is rarely passed through cleanly.
- Indefinite-contract dismissals require Tripartite Labour Committee (lagnat solasiyya) approval for organizational reasons. The process takes 60–90 days and the committee typically sides with employees. Mutual-agreement separations remain the cleanest exit.
- EGP devaluation (sequential ~50% drops in 2022–2024) makes USD-quoted EOR contracts dramatically cheaper to fund — but salaries are typically EGP-denominated and require frequent reviews to retain talent.
Frequently asked questions
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.