Global EOR Services in Egypt
Find, Hire & Pay Employees in Egypt
Hire in Egypt Without Establishing a Local Entity
Egypt is one of the largest economies in the Middle East and Africa, offering access to a young workforce, competitive labor costs, and a strategic location connecting Africa, the Middle East, and Europe. However, labor laws in Egypt are highly regulated and admin-heavy.
A Global Employer of Record (EOR) allows you to hire employees in Egypt legally and compliantly—without opening a local company. Your EOR manages onboarding, employment contracts, payroll, taxes, benefits, HR compliance, and ongoing support.
🇪🇬 Global Employer of Record (EOR) Services in Egypt helps
Quick market entry without incorporation
Fully compliant hiring under Egyptian labor law
Payroll, tax & social insurance management
Locally compliant benefits administration
Reduced legal risk with proper contracts
🇪🇬 Country Overview: Egypt: A Comprehensive Guide to Employment and Labor Practices
Capital: Cairo
Currency: Egyptian Pound (EGP)
Official Language: Arabic
Population: 110+ million
Major Industries: Energy, construction, telecom, IT, manufacturing, textiles, tourism, agriculture
Workforce: Young and cost-effective; strong talent in STEM and service sectors
Ease of Expansion: Medium—heavy compliance requirements make EOR an attractive solution
Population: Approx. 52 million
Egypt provides a large, educated workforce, especially in technology, engineering, finance, operations, customer support, and manufacturing. While the market is full of opportunities, compliance can be complex due to strict labor protections and social insurance requirements.
Laws and Policies in Egypt
Employment Contracts in Egypt
Employment relationships are mainly governed by the Egyptian Labor Law No. 12 of 2003.
Contract Requirements
- Must be in writing, in Arabic, and include:
- Job title & responsibilities
- Work location
- Working hours
- Salary (in EGP or foreign currency if approved)
- Probation period (max 3 months)
- Benefits, leave, termination terms
Types of Contracts
- Indefinite-term contracts (most common)
- Fixed-term contracts
- Project-based contracts
- Part-time or remote work contracts
All employees must be registered with Social Insurance Organization (SIO).
Working Hours in Egypt
- Standard workweek: 48 hours
- Typical schedule: 8 hours/day × 6 days/week
- Reduced hours during Ramadan for Muslim employees
- Overtime Rules:
- Daytime overtime: 135% of normal rate
- Night overtime: 170%
- Weekend/holiday work: 200%
Maximum total working hours (regular + overtime) cannot exceed 10 hours/day.
Employee Leave in Egypt
Annual Leave
- 21 days per year (after 1 year of service)
- 30 days per year for employees with 10+ years of service or age 50+
- 45 days for hazardous industries
Sick Leave
- 75% of salary for the first 90 days
- 85% thereafter, up to a maximum of 180 days
- Paid through Social Insurance
Maternity Leave
- 90 days paid maternity leave
- Allowed up to 3 times during employment
- Must be registered in Social Insurance
- Employer must provide childcare support if employing 100+ female workers
Paternity Leave
- Not mandated by law (some employers offer voluntarily)
Public Holidays
Egypt has 14+ paid public holidays, depending on lunar calendar dates.
Employee Benefits in Egypt
☑ Mandatory Benefits
Egyptian labor law and social insurance regulations require:
- Social insurance contributions
- Paid annual leave & sick leave
- Paid maternity leave
- Medical insurance through the national health system
- End-of-service gratuity (for certain contract types)
- Overtime premiums
- Severance pay (in specific termination cases)
☑ Social Insurance Contributions
- Employer: 18.75%
- Employee: 11%
Applied on the monthly salary subject to minimum and maximum limits.
Coverage includes:
- Pension
- Work injury insurance
- Disability
- Death benefits
- Maternity
- Unemployment (limited)
☑ Common Additional Benefits
- Private health insurance
- Meal allowance
- Transportation allowance
- Housing allowance
- Annual bonus
- Mobile/internet reimbursement
An EOR designs compliant benefits while staying competitive in the Egyptian job market.
Payroll & Tax Requirements
Income Tax for Employees
Progressive tax brackets:
- 0% to 27.5% based on income
- Withheld by employer (PAYE system)
Payroll Cycle
- Monthly payroll required
- Payments typically made at the end of each month
Payroll Currency
- EGP is standard
- Foreign currency payments allowed with special approvals
Mandatory Deductions
- Employee social insurance
- Income tax
- Applicable penalties for late filings if not compliant
EOR ensures accurate filings with the Egyptian Tax Authority and SIO.
Employment Laws and Labor Compliance in Egypt
Egypt’s labor laws strongly protect employees, making compliance essential.
Key Regulations
- Labor Law No. 12/2003
- Social Insurance Law No. 148/2019
- Occupational Safety & Health Regulations
- Ministry of Manpower guidelines
Important Legal Requirements
- Written Arabic contracts
- Mandatory registration in Social Insurance
- Limits on probation (3 months max)
- Strict rules on termination
- Employer obligations for safety and health compliance
- Protection for pregnant employees
- Prohibition of discrimination
Termination Rules
Termination must follow strict procedures:
- Valid reasons required (performance, behavior, redundancy)
- Employer cannot dismiss for pregnancy, maternity leave, or union activities
- Severance payment applies for redundancy termination
Severance Pay
- Indefinite contracts: 2 months’ salary per year of service
- Fixed-term contracts: remaining contract value (if terminated early)
Wrongful termination can lead to reinstatement orders or large compensation.
Opening a Legal Entity in Egypt
Foreign companies can establish a presence but must follow regulatory approvals and local rules.
Ability to hire top talent anywhere in Egypt
No need for bank accounts, office leases, or legal teams
Common Business Structures
- Limited Liability Company (LLC)
- Joint Stock Company (JSC)
- Branch of a foreign company
- Representative/liaison office (non-operational)
Requirements to Incorporate
- Local bank account
- Articles of Association
- Tax registration number
- Social insurance registration
- Lease agreement for physical office
- Egyptian partner required for some entities (not all)
- Minimum capital requirements depending on structure
Timeline
- 6–12 weeks to fully incorporate
Challenges
- Arabic documentation requirements
- Heavy administrative processes
- Mandatory social insurance
- Complex tax compliance
- Restrictions on hiring foreign workers (capped at 10% unless special approval)
Because of these challenges, many companies choose an EOR solution instead of opening an Egyptian entity.
Why Use Global EOR Services in Egypt?
Using an Employer of Record gives you:
- Quick market entry without incorporation
- Fully compliant hiring under Egyptian labor law
- Payroll, tax & social insurance management
- Locally compliant benefits administration
- Reduced legal risk with proper contracts
An EOR is the fastest and safest way to hire employees in Egypt.
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