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
EOR platform fees for Egypt range from $249–$499 per employee per month (often the cheapest EOR market by absolute fee). On top, employer NSIA contributions are 18.75% on capped wages (EGP 14,500/month in 2025), so for senior hires the effective social-burden % drops dramatically. Total true cost typically runs 22–28% above gross including severance accrual and profit-sharing exposure.
NSIA contributions apply only up to EGP 14,500/month (2025 ceiling). For an employee on EGP 50,000/month, employer cost is 18.75% × EGP 14,500 = ~EGP 2,720/month, just 5.4% of total compensation. This makes Egypt one of the cheapest OECD-adjacent markets for senior hires once the cap is exceeded.
Companies Law 159/1981 Art. 41 requires 10% of distributable net profits to be paid to employees of joint-stock companies with 50+ workers. Capped at 12 months' salary per employee. EORs hosting your hire are typically large enough to be in scope, but the profit-sharing pool is calculated on the EOR's profits, not yours, and distribution rarely reaches contracted-out hires cleanly. Confirm pass-through with your provider.
For indefinite contracts, only with documented 'just cause' (Art. 69), typically misconduct or gross negligence. Organizational redundancy requires Tripartite Labour Committee approval (60–90 day process, with strong employee bias). Mutual agreement (tasalu) with 2 months' per-year compensation is the standard clean exit. Fixed-term contracts can be terminated by paying the remainder of the term.
The Egyptian pound dropped from ~EGP 15/USD in 2022 to ~EGP 49/USD by early 2025 across three sequential devaluations. For HQs paying EOR invoices in USD, Egyptian hires have become dramatically cheaper in dollar terms. Local salaries have risen in EGP terms but rarely fully tracked inflation, so real take-home declined, making 6-month salary reviews and FX clauses essential for retention.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.