Most employees in Egypt are searching for a stable position with the right salary and benefits. Compensation and benefits are important for you as an employer as well since you need to stay compliant and encourage high retention rates. However, you need to have the time to learn all of Egypt’s compensation laws while running a company in a new location.
Globalization Partners works to make it easier to expand through Egypt compensation and benefit outsourcing. Our experts understand all the country’s employment laws, and we’re committed to keeping your company compliant. When you work with us, we’ll take the stress out of sourcing benefits and compensation, so your only job will be running your company.
Egypt Compensation Laws
Egypt’s President Abdel Fattah el-Sisi authorized a minimum wage increase that began in 2019. Now, the minimum wage is 2,000 Egyptian pounds (EGP) instead of 1,200 EGP. Employees who work more than 40 hours a week should receive overtime of 35% their normal pay during daylight hours and 70% for work at night. Any work on an employee’s day off or holidays should get compensated at 100% according to Egyptian compensation laws.
Guaranteed Benefits in Egypt
Your employees must receive guaranteed benefits required by law in Egypt. For example, your Egypt benefit management plan must include time off for the country’s 12 national holidays and annual vacation time. Employees typically get 21 days of annual paid leave after working for six months. Once they work for 10 years or reach the age of 50, they get a month of paid leave.
Since Egypt is home to many practicing Muslims, employees who work for your company for five years consecutively should be eligible for a one-time, one month’s paid leave for a religious pilgrimage.
Egypt Benefits Management
The best way to encourage greater retention rates among your employees is by offering supplemental benefits that aren’t required but are expected. Annual bonuses are common in Egypt, so you should include them in your Egypt benefit management plan.
Private companies are also required to provide free healthcare for their employees. They can do so either privately or through the Medical Insurance Plan of the Ministry of Social Insurance. If healthcare is important to your employees, you can also consider offering a stipend that will cover additional medical costs.
Restrictions for Benefits and Compensation
If you follow the traditional model of expansion, you’ll need to incorporate in Egypt before you can disperse your benefits and compensation. However, doing so can take weeks or months and slow down your plans to start operating in the country. Globalization Partners can make the process easier through Egypt compensation and benefit outsourcing. After we hire employees to work on your behalf, we’ll source the best benefits and compensation for your company. We understand Egypt’s compensation laws front to back and can make sure you stay compliant.
Choose Globalization Partners Today
If you’re ready to open a location in Egypt, let Globalization Partners help make the process smoother through Egypt compensation and benefit outsourcing. Contact us today to learn more.