Flag of Egypt

Egypt

Europe

Running Payroll in Egypt with Rippling

Egypt has an 18.75% employer social insurance rate, progressive income tax (0–27.5%), and a rapidly evolving minimum wage. Monthly ETA withholding required. Rippling handles SIA, ETA, and Egypt Labor Law compliance.

Compliance Complexity
Medium
Understanding contractor classification rules is critical before engaging independent contractors.
Rippling Availability
Full
Understanding contractor classification rules is critical before engaging independent contractors.

Location Overview

Egypt is the most populous country in the Arab world and North Africa's largest economy, with strengths in tourism, oil and gas, the Suez Canal, agriculture, and a fast-growing technology and outsourcing sector in Cairo, New Cairo, and Alexandria. Egypt has a large, young, Arabic and English-speaking workforce. The EGP has faced significant devaluation since 2022, making Egyptian talent cost-competitive for USD/EUR-paying employers. Egypt is a Rippling EOR market.

Entity Requirement

What You Need Before Running Payroll Here.
  • Egyptian legal entity (LLC or branch) registered with the General Authority for Investment and Free Zones (GAFI)
  • Social Insurance Authority (SIA) employer registration
  • Egyptian Tax Authority (ETA) employer registration for income tax withholding
  • Ministry of Manpower registration

Rippling Payroll Notes

How Rippling Handles Payroll Here.

Payroll Compliance at a Glance

A quick view of the core payroll requirements, statutory rules, and operating details for this location.
Flag of Egypt
Egyptian Pound (EGP)
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    Minimum Wage

    EGP 6,000/month (private sector, 2024). Subject to periodic review by the National Wages Council.
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    Payroll Cycle

    Monthly. Income tax withheld and remitted to ETA monthly. Social insurance contributions remitted to SIA monthly.
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    Working Hours

    48 hours/week maximum (8 hours/day, 6 days). Overtime: 35% premium on weekdays; 70% on rest days and holidays. Ramadan: reduced to 36 hours/week for Muslim employees.
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    Payroll Tax

    <p>Employer social insurance: 18.75% on base salary up to SIA ceiling. Total employer on-cost approximately 18–20% of gross. Monthly remittance to SIA and ETA.</p>
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    Compliance Complexity

    Medium
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    Country Code

    Egyptian Pound (EGP)
  • Employer & Employee Contributions

    A side-by-side view of employer obligations and employee payroll deductions.

    Employer Contributions

    ContributionRateNotes
    Social Insurance (employer)18.75%Private sector rate on base salary up to insured ceiling

    Employee Contributions

    ContributionRateNotes
    Social Insurance (employee)11%On base salary up to the insured ceiling
    Income tax0–27.5%Progressive 7-bracket system; withheld monthly

    Tax, Leave & Termination

    Key employment information to help you understand your obligations and Employee rights

    Income Tax Summary

    Annual Income (EGP)Rate
    Up to 40,0000%
    40,001–55,00010%
    55,001–70,00015%
    70,001–85,00020%
    85,001–100,00022.5%
    100,001–200,00025%
    Above 200,00027.5%

    Monthly withholding by employer; annual reconciliation to ETA.

    Leave Entitlements

    • 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 leave: 90 days fully paid (female employees, up to 3 times in career).
    • Public holidays: 13–15 days (some vary by Islamic/Coptic calendar).

    Termination Rules

    Notice: 2 months (5–10 years), 3 months (10+ years). Severance: 1 month's wage per year of service. Unfair dismissal: up to 24 months' wages. GAFI and Ministry of Manpower notifications may be required for collective dismissals.

    Year-End Filings

    • Annual income tax reconciliation to ETA.
    • Social insurance annual statement to SIA.

    Benefits Overview

    • Social Insurance: Employer ~18.75% (private sector); covers pension, disability, death.
    • Market standard: Private medical insurance, housing allowance, transport allowance, annual bonus. Cairo and New Cairo are primary markets.

    FAQ

    How does Egypt's income tax work for employees?

    Egypt applies income tax on a progressive basis with 7 brackets from 0% to 27.5% (2024). Notably, Egypt has a personal exemption of EGP 20,000/year. The employer withholds income tax monthly and remits to the Egyptian Tax Authority (ETA). Annual reconciliation is required. Egypt periodically adjusts tax brackets for inflation.

    How does Egypt's social insurance ceiling work?

    Egypt's social insurance is capped at an insured salary ceiling set annually by the Social Insurance Authority. Employer rate: 18.75%; employee rate: 11% of base salary up to the ceiling. The ceiling is updated regularly. Contributions above the ceiling are not required. Rippling tracks ceiling updates and applies the correct contribution.

    What is Egypt's minimum wage?

    Egypt's minimum wage in the private sector is EGP 6,000/month (2024), set by the National Wages Council. Minimum wages in Egypt have been increasing rapidly due to inflation and currency devaluation. The government reviews minimum wages periodically.

    What are Egypt's leave entitlements?

    Egypt's Labor Law (Law 12/2003) provides for annual leave of 21 days per year (increasing to 30 days after 10 years or at age 50+), 80 days sick leave (full pay for first 30 days; 75% for next 90 days), and maternity leave of 90 days at full pay for female employees. Public holidays: 13–15 days per year (some vary by religious calendar).

    Related Locations

    Explore nearby and comparable markets to understand how payroll requirements and compliance complexity differ.