Key Takeaways for Hiring in Egypt
- Minimum wage: EGP 6,000/month
- Standard working hours: 8 hours/day per day / 48 hours per week
- Recommended hiring model: EOR
- Local currency: Egyptian pound (EGP)
Continent
Africa
Capital
Cairo
Currency
Egyptian Pound (EGP)
Language
Arabic
Payroll Cycle
Monthly
Pay Date
25th of the month
VAT
14%
Egypt employment contract overview
From probation periods to notice requirements. Here’s how to structure contracts that protect both you and your employees.
What do you need to include in an Egyptian employment contract?
Egyptian labor law requires these details in every contract. Miss one and you risk non-compliance:
Employee Information
- Full name
- ID number
- Role / Job title
- Nationality
- Address
- Date of birth
- Place of birth
- Annual leave
- Start date
- End date (if applicable)
- Contract duration
- Contract term
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
Important: Physical signatures are mandatory on hard copies. Digital won’t cut it here.
Hiring contractors? Learn how to avoid misclassification risks in Egypt.
Payroll
Average employer cost
19.75%
| Category | Details |
|---|---|
| Salaried Employees | Monthly, with payment typically due by the end of the month |
| 13th Salary | Not mandatory, though bonuses are customary in some sectors |
| Avg employer tax | ~18.75% of gross salary |
Tax Breakdown
Employer Contributions
| Category | Rate / Details |
|---|---|
| Social Insurance | 18.75% |
| Unemployment, injury, and pension | included in this rate |
Employee Contributions
| Category | Rate / Details |
|---|---|
| Social Insurance | 11% of gross salary |
Personal Income Tax (paid by employees): Progressive
| Category | Rate / Details |
|---|---|
| Up to EGP 15,000 | Exempt |
| EGP 15,001 – 30,000 | 2.5% |
| EGP 30,001 – 45,000 | 10% |
| EGP 45,001 – 200,000 | 15% |
| Above EGP 200,000 | 22.5% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 14% |
Employee benefits and mobility in Egypt
| Benefits | Mandatory? | Notes |
|---|---|---|
| Health Insurance | Yes |
Basic health insurance coverage is mandatory for all employees registered via social insurance. It covers inpatient, outpatient, maternity, medications, and work‑injury services. |
| Pension / Social Security | Yes |
Covers old‑age pension, disability, survivor benefits, unemployment, and work‑injury compensation for all registered employees. |
| Other Statutory Benefits | Yes |
Includes unemployment insurance and survivors’ and family benefits |
Leave and holidays in Egypt
Annual Leave
During first year ( less than 1 yr): Entitled to pro-rated leave; at least 15 days/year.
Employees with ≥1 year of service: 21 working days/year with full pay.
After 10 years of service or if aged ≥50: 30 working days/year.
Employees can carry forward at least 6 consecutive days of unused leave for up to 2 years.
Employers must settle unused leave every 2 years.
Public Holidays
Employees get fully paid leave for 14 official public holidays each year. Many are based on the lunar calendar, so dates vary annually. These include:
-
Islamic New Year – Prophet Mohammed’s Birthday
-
Eid al-Fitr (2 days)
-
Eid al-Adha (3 days)
-
Eastern Christmas
-
Revolution Day
-
Sham El Nessim
-
Sinai Liberation Day
-
Labor Day
-
Another Revolution Day (July 23)
-
Armed Forces Day
Need someone to work on a public holiday? You can require it if there’s a valid business need, but you must pay them double their regular rate.
Sick Leave
Employees can take up to 90 days per year when certified by a medical authority. They can even convert annual leave into sick leave if needed.
Pay structure:
-
First 90 days: 75% of wage base.
-
After 90 days, sick leave is unpaid unless agreed otherwise.
Maternity Leave
A new law (effective September 1, 2025) increases maternity leave to 120 days, paid at 100% of wages via social insurance.
Nursing breaks: Two 30-minute breaks per day, up to 24 months.
Termination protection: You can’t fire someone because they’re pregnant or on maternity leave
Paternity Leave
The new labor law (effective September 2025) introduces 1 day of paid paternity leave per child (up to 3 children).
Other Types of Leave
Hajj / Pilgrimage leave: After 5 years of service, employees get 1 month paid leave for Hajj or Jerusalem pilgrimage, once in their career
Emergency (accidental) leave: Up to 7 days per year, in increments of maximum 2 days, deducted from annual leave.
Bereavement leave: Discretionary, typically 3 days.
Termination and offboarding in Egypt
Egyptian termination laws are employee-friendly, with strict notice periods and severance requirements. Here’s how to navigate exits without legal surprises.
| Type | Possible? |
|---|---|
| Termination for cause (poor performance, misconduct, etc.) | Yes |
| Termination without cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Possibly. Please consult on a case-by-case basis. |
Egypt employee resignation
Acceptable grounds
Employees can resign from open-ended contracts for valid health, social, or economic reasons. If they quit without a valid legal reason, they ‘re required to compensate you for any damages from the premature termination.
Notice
Either party can terminate the employment contract with 3 months’ written notice.
End-of-Service Benefits
Severance/Gratuity
- You don’t have to pay severance if the employee resigns voluntarily without a valid legal reason.
- You do need to pay severance if the employee resigns for valid legal reasons (e.g., health or economic reasons) as defined by law.
Other Benefits
- Annual leave balance cash out
- Last working days payment
Employer termination with cause in Egypt
Acceptable grounds: What counts as “cause”?
Disciplinary causes
These violations follow specific disciplinary procedures:
- Repeated or serious violation of workplace policies
- Absence without valid reason for a specified number of days
- Disclosure of trade secrets causing harm to you
- Being found guilty of a felony or certain misdemeanors involving moral turpitude or dishonesty
- Gross negligence causing significant loss to you
Absence-based termination is legally allowed if the employee is absent without a valid reason for either:
- 20 non-consecutive days within a single year, or
- 10 consecutive days
You can issue warning letters for unexcused absences before reaching this point.
Notice
Form
The labor law requires written notice when you intend to terminate an indefinite contract.
Notice period
Either party needs to give 3 months’ written notice
You can’t waive or reduce this by agreement, but you can extend it
The notice period keeps running during sick leave unless the employee
is hospitalized for a long period
End-of-Service Benefits
Severance
For termination with cause (serious misconduct), severance isn’t payable.
Other Benefits
- Annual leave
- Last working days
Employer termination without cause in Egypt
Notice
Either party needs to give 3 months’ written notice.
You can’t waive or reduce this period by agreement, but you can extend it.
Notice period keeps running during leave and sick leave, unless the employee
is hospitalized long-term.
End-of-Service Benefits
Severance/Gratuity
Unjustified termination triggers compensation not less than two months’ wages per year of service (on top of other entitlements).
Other Benefits
Other benefits on employer termination without cause in Egypt generally include:
- Payment for unused annual leave
- Payment for any outstanding wages or bonuses
- Repatriation costs for expats (if applicable)
Final payment timing and compliance
Final payment deadline
You must pay on the last day of work or within 15 days.
Penalty
Penalties apply for late payments.
Visa and immigration compliance
When someone leaves, employers need to follow these steps:
Visa cancellation
The employer is responsible for initiating the cancellation of the employee’s work visa with the relevant authorities.
Final settlement
Employers need to make sure all dues, including final salary, severance pay, and any other entitlements, are settled before visa cancellation.
Documentation
Employers must give employees a termination letter and any other necessary documents to facilitate the visa cancellation process.
Mutual Termination Agreements (MTAs) in Egypt
An MTA is a voluntary agreement where both parties (you and the employee) agree to end the contract by mutual consent. While Egypt doesn’t have specific MTA legislation, the Egyptian Civil Code allows termination by mutual consent.
Notice
Either party can terminate the employment contract with 3 months’ written notice.
You can’t waive or reduce this period by agreement, but you can extend it.
The notice period doesn’t run during leave and gets suspended during sick leave.
End-of-Service Benefits
Severance/Gratuity
Severance pay in mutual termination is still subject to statutory entitlement unless otherwise waived/negotiated by mutual consent.
Other Benefits
Repatriation Flight
Typically included in a mutual termination agreement:
- Accrued wages up until the termination date
- Unused annual leave compensation
- Any additional agreed-upon compensation
Termination Documentation
The agreement needs to be in writing to be enforceable.
Final payment timing and compliance
Terminations, including mutual agreements, must be certified by the employment office. If no response comes back within 10 days, termination is deemed accepted. The employee can also revoke their acceptance within that period.
Offboarding process for the end of fixed-term contracts in Egypt
If the contract ends normally
Notice
- Fixed-term contracts end automatically when the term expires
- If the contract runs or gets/renewed for more than five years, the employee can terminate after completing five years by giving three months’ notice.
- Task‑based contracts end when the task is complete. If parties keep going after completion, the contract is deemed renewed for similar tasks. If the work exceeds 5 years, the employee can’t terminate before completing the assigned tasks.
End-of-Service Benefits
When the contract hits its agreed expiry date and isn’t renewed, employers only owe:
- Salary for the worked period
- Payment for accrued but unused leave
- Any agreed end-of-service gratuity (if it’s in the contract)
If the employer terminates early
End-of-service benefits
Severance/Gratuity
- The employee is entitled to compensation equal to the remaining period of the contract (full salary for the unexpired term).
- If the fixed-term contract exceeds five years and the employer terminates it early, the employee is also entitled to one month’s gross salary for each completed year of service.
Supporting Guides
Frequently Asked Questions
Do I need a legal entity to hire employees in Egypt?
Not necessarily. If you don’t have a local entity, you can hire through an Employer of Record (EOR) like RemotePass. We serve as the legal employer, handling contracts, payroll, benefits, and compliance while you manage the day-to-day work.
Can I pay salaries in USD instead of EGP?
Yes, USD payments are allowed and often preferred for expat roles. However, it’s important to ensure compliance with Central Bank of Egypt regulations and to specify the currency in the employment contract.
Is an Arabic employment contract mandatory?
Yes. Employment contracts must be in Arabic or bilingual (Arabic + English), with the Arabic version taking legal precedence in case of disputes.
How does social insurance work in Egypt?
Both employers and employees contribute a percentage of the insured salary to Egypt’s social insurance scheme. Employers contribute approximately 18.75% and employees contribute 14%, based on predefined salary thresholds.
How are end-of-service benefits calculated?
EOSB varies based on the reason for termination. Voluntary resignations without legal cause may not qualify for severance. Unjustified terminations typically trigger 2 months’ salary per year of service as compensation, alongside unused leave payouts.
What’s the required notice period in Egypt?
The standard notice period is 3 months for both employers and employees. This applies across resignation, terminations, and mutual agreements.
Is remote work legally recognized in Egypt?
Remote work is not explicitly regulated in Egyptian labor law, but it is practiced. Ensure that remote arrangements are clearly stated in the employment contract, including location, working hours, and performance expectations.
Are public holidays paid in Egypt?
Yes, employees are entitled to fully paid leave for 14 public holidays annually. If employees work on a public holiday, they must be compensated at double pay.
Does Egypt have maternity and paternity leave?
Yes. Starting September 2025, Egypt mandates 120 days of paid maternity leave (covered by social insurance). New laws also introduce 1 day of paid paternity leave per child (up to 3 children).
How soon must I offboard an employee after termination?
Final payment and visa cancellation (if applicable) must be completed within 15 days of termination. Delays may result in penalties.
