Africa Deployments provides Employer of Record (EOR) services in Egypt, enabling international companies to hire Egyptian employees under Labour Law No. 12/2003 without registering a local entity with the General Authority for Investment and Free Zones (GAFI). As the EOR partner in Egypt, Africa Deployments becomes the legal employer of your Egypt-based team, managing social insurance contributions to the National Organisation for Social Insurance (NOSI), income tax withholding to the Egyptian Tax Authority (ETA), Arabic-language employment contracts, and payroll processing in Egyptian pound.
Quick facts: EOR Egypt at a glance
- Social insurance: 18.75% employer + 10.75% employee of monthly basic salary
- Income tax: Progressive 0% to 25% on annual net income
- Minimum wage: EGP 6,000/month (public sector, from March 2024; private sector varies)
- Annual leave: 21 working days per year (30 days for employees over 50 or with 10+ years)
- Maternity leave: 90 days; employer-funded
- Working week: 8 hours per day, 48 hours per week maximum
What Is an Employer of Record in Egypt?
An Employer of Record in Egypt is a locally registered entity that employs workers on behalf of a foreign company under Egyptian labour law. Africa Deployments’ EOR Egypt service covers Labour Law No. 12/2003-compliant contract drafting in Arabic and English, NOSI social insurance registration and monthly contribution management, ETA income tax withholding and remittance, payslip generation in Arabic, and payroll processing in Egyptian pound (EGP).
Egypt is Africa’s most populous Arab country and a significant market for international businesses in technology, fintech, logistics, and business process outsourcing. Its large, educated, and Arabic-English bilingual workforce makes it a growing hub for regional operations and service delivery.
Egypt Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Labour Law No. 12/2003 |
| Minimum wage | EGP 6,000/month (public sector from March 2024) |
| Social insurance | 18.75% employer + 10.75% employee of basic salary |
| Income tax | Progressive 0% to 25% on annual net income |
| Tax authority | Egyptian Tax Authority (ETA) |
| Annual leave | 21 working days (30 days for over-50s or 10+ years’ service) |
| Maternity leave | 90 days; employer-funded |
Payroll, Tax and Social Insurance Compliance in Egypt
Egyptian employers file monthly income tax declarations with the Egyptian Tax Authority (ETA). Income tax is progressive from 0% on annual net income up to EGP 40,000 to 25% on income above EGP 1,200,000 per year. Social insurance contributions – 18.75% employer and 10.75% employee – are calculated on basic salary rather than total gross remuneration, which requires careful payroll structure management to ensure correct deduction and employer cost budgeting. NOSI social insurance covers old age, disability, and death benefits. The social insurance ceiling and base are adjusted periodically by Ministerial decision.
Egypt’s labour market has undergone significant change with the introduction of new social insurance Law No. 148/2019, which is being phased in and modifies contribution rates and ceilings over the transition period. Businesses running Egypt payroll without current knowledge of the phase-in schedule frequently encounter compliance gaps during the transition.
Why Companies Choose Africa Deployments for EOR in Egypt
- Labour Law No. 12/2003-compliant contracts in Arabic and English
- Monthly NOSI social insurance contribution management and payment
- ETA income tax withholding and monthly remittance
- Arabic-language payslip generation in Egyptian pound (EGP)
- Egypt EOR as part of Africa Deployments’ North Africa multi-country hiring platform
Frequently Asked Questions
What is Egypt’s social insurance rate?
Social insurance contributions are 18.75% employer and 10.75% employee on basic monthly salary, remitted to NOSI. The combined rate of 29.5% represents a significant employer on-cost on Egyptian payrolls, particularly where basic salary is a large proportion of total package.
What is Egypt’s income tax rate?
Egypt’s employment income tax is progressive from 0% on annual net income up to EGP 40,000 to 25% on income above EGP 1,200,000. Monthly payroll withholding is calculated on annual-equivalent net income.
What annual leave applies in Egypt?
Egyptian employees are entitled to 21 working days of annual leave per year under Labour Law No. 12/2003. This increases to 30 working days for employees over 50 years of age or with 10 or more years of continuous service.
Is Arabic required for employment contracts in Egypt?
Yes. Employment contracts in Egypt must be written in Arabic to be enforceable under Egyptian labour law. Africa Deployments produces bilingual Arabic-English contracts as part of its EOR Egypt service.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Egypt’s social insurance structure, progressive income tax system, Arabic-language contract requirements, and ongoing transition to new social insurance Law No. 148/2019 create a payroll compliance environment that rewards local expertise. Africa Deployments’ EOR Egypt service provides the registered employer infrastructure, NOSI and ETA compliance management, and bilingual Arabic-English contract administration that international companies need to hire in Egypt without entity establishment.
Reviewed by: Africa Deployments Compliance Team
