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Egypt has an 18.75% employer social insurance rate, progressive income tax (0–27.5%), EGP 6,000/month minimum wage, and nationality quotas for non-Egyptian work permits. Rippling EOR handles SIA, ETA, and Labor Law compliance.
Egypt is North Africa's largest economy with a fast-growing technology and BPO sector in Cairo and New Cairo. Egypt has a large, young, Arabic and English-speaking workforce. EGP devaluation since 2022 has made Egyptian talent highly cost-competitive for USD/EUR-paying employers. EOR is popular for technology, financial services, and professional services companies accessing Egypt's talent pool. Work permits for non-Egyptians are subject to nationality quotas.
Setting up an Egyptian LLC requires GAFI registration, SIA/ETA employer registration, and Ministry of Manpower registration. EOR is recommended for 1–10 employees or where nationality quota management for non-Egyptian workers is a complexity. Egypt's active labor inspectorate and periodic minimum wage changes make EOR valuable for employers without local HR expertise.
Social Insurance employee: 11% of base salary up to SIA ceiling. Income tax withheld monthly by employer: progressive 0–27.5% on 7 brackets.
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Social Insurance employer: 18.75% of base salary up to SIA ceiling (updated annually by SIA). Total employer on-cost approximately 18–20% of gross. Monthly remittance to SIA and ETA required.
Progressive 7-bracket: 0% (up to EGP 40,000); 10% (EGP 40,001–55,000); 15% (55,001–70,000); 20% (70,001–85,000); 22.5% (85,001–100,000); 25% (100,001–200,000); 27.5% (above 200,000). Monthly withholding to ETA. Annual reconciliation.
Annual leave: 21 days/year; 30 days after 10 years or age 50+. Sick leave: 30 days full pay; next 90 days at 75%. Maternity: 90 days fully paid. Public holidays: 13–15 days (some vary by Islamic/Coptic calendar).
Notice: 2 months (5–10 years); 3 months (10+ years). Severance: 1 month per year of service. Unfair dismissal: up to 24 months' compensation. Collective dismissal notification to Ministry of Manpower required.
Non-Egyptian nationals require work permits (not to exceed 10% of workforce in most sectors). Rippling EOR manages work permit applications through its Egyptian entity. Processing time: 4–8 weeks.
Statutory: Social Insurance (employer 18.75%), 21–30 days annual leave, 90 days maternity leave paid, sick leave. Market standard: private medical insurance, housing allowance, transport allowance, annual bonus. Cairo and New Cairo are primary markets.
Rippling EOR Egypt operates through a local Egyptian entity. Key Egypt-specific handling: SIA ceiling tracking and monthly contributions (18.75%), ETA income tax withholding, Ministry of Manpower work permit applications, Labor Law compliance, and termination management.
Non-Egyptian employees require work permits from Egypt's Ministry of Manpower. Work permits are subject to a nationality quota: foreign nationals cannot exceed 10% of the employer's workforce (25% in some sectors). Rippling EOR manages work permit applications through its Egyptian entity. The quota is applied at the EOR entity level, which may have capacity across multiple client workforces.
Egypt's social insurance contribution (18.75% employer + 11% employee) is capped at an insured salary ceiling set annually by the SIA. For 2024, the ceiling is updated periodically. Contributions on salary above the ceiling are not required. Rippling EOR tracks SIA ceiling updates and applies the correct contribution rate and ceiling automatically.
Egypt's minimum wage in the private sector is EGP 6,000/month (2024). It has been increasing rapidly due to inflation and EGP devaluation. Rippling EOR ensures all employees are paid at or above the current minimum wage and tracks government announcements of minimum wage increases.
Notice periods: 2 months (5–10 years of service); 3 months (10+ years). Severance: 1 month's wage per year of service. Unfair dismissal: up to 24 months' wages compensation. Collective dismissals require Ministry of Manpower notification. Rippling EOR manages terminations compliantly.
