Employer of Record in Egypt

An Employer of Record (EOR) in Egypt lets foreign companies employ full-time team members locally without setting up an entity. The EOR becomes the legal employer, handling contracts, payroll, taxes, benefits, and compliance with Egyptian labor law.

Use an EOR when you need to hire in Egypt quickly, test a new market, or run a small team without the cost and delay of incorporating.

Key takeaways: Egypt hiring at a glance

• Currency: Egyptian Pound (EGP)
• Standard working week: 8 hours/day, 48 hours/week
• Minimum wage: 7,000 EGP per month
• Annual leave: 21 days (30 days after 10 years of service or age 50+)
• Maternity leave: 90 days paid (after 10 months of service)
• Employer payroll cost: ~19.75%
• Employee social security contribution: 11%
• Income tax: 0%–27.5% (progressive)
• Probation: up to 3 months
• Notice period: 2 months (<10 years), 3 months (10+ years)

Hire in Egypt with Gloroots → Book a demo

With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.

Misclassification, treating an employee as an independent contractor, exposes companies to back taxes, penalties, and legal claims. Using an EOR in Egypt ensures proper worker classification, accurate payroll, and full statutory coverage.

Employment contracts

In Egypt, employment contracts must be in writing, whether for a fixed term, indefinite period, or a specific project. These contracts are written in Arabic and must be provided in triplicate: one for the employer’s records, one for the employee, and one for the social security authority. The contract typically includes essential details such as:

• Identification of both employer and employee
• Employment start date (and end date for temporary contracts)
• Work location
• Job description and responsibilities
• Salary and compensation, typically in local currency (Egyptian Pounds)
• Working hours
• Total number of holidays
• Notice periods for termination

Employers must also be aware of the legal nuances involved in these contracts. However, navigating these requirements doesn't have to be difficult. Gloroots’ Employer of Record (EOR) service streamlines the process, allowing businesses to easily hire and manage employees in Egypt, ensuring full legal compliance and freeing you from administrative complexities. For a breakdown of pricing, see our guide to EOR cost.

Contact us to learn more about how Gloroots can help with your hiring needs in Egypt.

Working hours

The standard working week in Egypt consists of 8 hours a day and 48 hours a week.

Overtime

Any hours worked beyond the standard 48 hours per week are considered overtime. Overtime pay is 135% of the regular salary for daytime work and 170% for nighttime work. If employees work on days off, they will receive double their daily wage and an extra day off the following week. Both the employer and employee must agree on working during days off in advance.

Minimum Wage

The minimum wage in Egypt is 7,000 EGP per month, effective 2025 for the public sector following government announcements; private sector minimums may differ by sector and agreement. For part-time workers, the minimum hourly wage is set at 28 EGP. Always verify the latest figure with the Ministry of Manpower before onboarding.

Sick Pay

In Egypt, employees who are unable to work due to illness or injury are eligible for paid sick leave. The maximum duration of sick leave is 180 days per year, during which time the employee is safeguarded from termination and receives sick pay from social security.

In the first three months of sick leave, employees receive sick pay equal to 75% of their social security salary, determined by certain criteria. After this initial period, the sick pay rate rises to 85%. To claim sickness benefits, employees must provide a medical certificate.

Annual Leave

For employers in Egypt, it's important to know that your employees are entitled to 21 days of paid annual leave if they've been with your company for at least six consecutive months. However, if an employee has completed ten years of continuous employment or is over 50 years old, their paid annual leave increases to 30 days. This is a legal requirement you should be aware of when managing your workforce.

Maternity Leave

Female employees in Egypt who have worked continuously for ten months are eligible for 90 days of paid maternity leave, with an additional 45 days after giving birth. They can take two separate maternity leave periods during their entire employment. When they come back to work, these women have the right to two thirty-minute nursing breaks each day or can combine them into one-hour breaks for up to two years following the baby's birth.

Paternity Leave

The law doesn't include any regulations or provisions related to paternity leave.

Employer Payroll Contributions

Employee Payroll Contributions

Income Tax

Notes on bracket application:

• For total net income between 600,000 and 700,000 EGP, the 0% bracket does not apply; taxation starts at 10%.
• For total net income between 700,000 and 800,000 EGP, the 10% bracket does not apply; taxation starts at 15%.
• For total net income between 800,000 and 900,000 EGP, lower brackets up to 15% do not apply; taxation starts at 20%.
• For total net income between 900,000 and 1,200,000 EGP, lower brackets up to 20% do not apply; taxation starts at 22.5%.
• For total net income above 1,200,000 EGP, all income is taxed from the 25% bracket upward, with amounts over 1,200,000 EGP taxed at 27.5%.

Termination Process

The process of terminating an employee depends on the type of contract and the agreement in place:

If an employer wants to fire an employee, they must go to a committee at the Ministry of Manpower and Migration, which has 15 days to decide. If the employee disagrees with the termination or the compensation package, they can challenge it in court.

Notice Period

In Egypt, the notice period depends on the employee's contract and how long they have worked for the company. If the employee has worked for less than ten years, the notice period is two months. For employees with more than ten years of service, the notice period is three months. No notice is needed during the probation period.

Severance Pay

For definite or indefinite contracts, employees are not entitled to severance pay unless their termination is unfair or the employer decides to provide it voluntarily. For project-based contracts, there is no severance pay unless the employer chooses to offer it voluntarily.

Probation Periods

Probation periods can last up to three months.

Frequently asked questions

How much does an EOR in Egypt cost?

EOR pricing in Egypt is typically a fixed monthly fee per employee, separate from the employee's gross salary and statutory employer contributions (~19.75%). Gloroots uses predictable, country-specific pricing with no percentage-of-salary fees. For a detailed breakdown, see our guide to EOR cost.

Can a foreign company hire in Egypt without an entity?

Yes. A foreign company can employ team members in Egypt without setting up a local entity by partnering with an Employer of Record. The EOR acts as the legal employer in Egypt, issuing locally compliant contracts, running payroll in EGP, and managing tax and social security filings, while the client directs the day-to-day work.

How long does EOR onboarding take in Egypt?

Onboarding through an EOR in Egypt typically takes 5–10 business days once the candidate has signed and provided required documentation. Timelines depend on background checks, work authorization status, and contract review. An entity-based setup, by comparison, can take several months.

Is severance mandatory in Egypt?

Severance is not automatically mandatory for definite or project-based contracts. For indefinite contracts, employees are entitled to severance on termination. If a termination is deemed unfair by the Ministry of Manpower committee or a court, the employer may be required to pay compensation regardless of contract type.

What are the standard working hours in Egypt?

The standard working week in Egypt is 8 hours per day and 48 hours per week. Work beyond this threshold is considered overtime and paid at 135% (daytime) or 170% (nighttime) of the regular salary.