G-P’s Employer of Record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Egypt
When negotiating terms of an employment contract and offer letter with an employee in Egypt it may be useful to keep the following in mind.
Employment contracts in Egypt
Employers and employees can agree to fixed-term employment contracts in Egypt. These contracts can be extended or renewed for another specific period through a written agreement. If the contract ends and the employee keeps working for the employer without a renewal, the employment automatically transitions to an indefinite term.
It is legally required to put a written employment contract in place in Egypt, in triplicate and in Arabic. The contract should spell out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Egypt should always state the salary and any compensation amounts in Egyptian pounds rather than another currency.
Working hours in Egypt
In general, the workweek is 40 hours from Sunday through Thursday.
Holidays in Egypt
Egypt celebrates 12 national holidays:
- Coptic Christmas Day
- Revolution Day
- Sinai Liberation Day
- Coptic Easter
- Labour Day
- Sham el Messim
- Eid Al Fitr
- National Day
- Eid Al Adha
- Al Hijra
- Armed Forces Day
- Milad Un Nabi
Vacation days in Egypt
Employees are generally entitled to 21 days of annual paid leave once they have worked for 6 months. After 10 years of service, or upon reaching the age of 50, employees are entitled to 1 month of paid leave.
Employees who have worked for a consecutive 5 years are generally eligible for a 1 month paid leave for a religious pilgrimage.
Egypt sick leave
Employees are entitled to up to 6 months of sick leave, paid at a rate between 75% and 100% of the worker’s regular wage.
Maternity/paternity leave in Egypt
Pregnant employees are generally entitled to 90 days of paid maternity leave.
Health insurance in Egypt
Private companies must provide free healthcare for employees through the Medical Insurance Plan of the Ministry of Social Insurance or privately.
Bonuses
Annual bonuses are common in Egypt.
Termination/severance in Egypt
Probation periods may not exceed 3 months and may not be renewed.
In relation to any disputes concerning an employee’s termination, either party may choose to request a committee from the competent labor office within 10 days of the dispute to reach a settlement.
Employees with less than 10 years of service are entitled to 60 days’ notice of termination. After 10 years, the employee is entitled to 90 days’ notice.
Paying taxes in Egypt
Employee income tax is imposed on the total net income inside and outside of Egypt for resident individuals whose center of commercial, industrial, or professional activities are in Egypt. Also, tax is imposed on the income of non-resident individuals for income earned in Egypt.
The salary on which social insurance shares are calculated is capped at a maximum salary of EGP 15,000 and a minimum of EGP 3,500.
The minimum and maximum social insurance are increased 15% in January of each year for both employee and employer.
Social insurance amounts are as follows:
| Employee Share | Employer Share | ||
| Minimal social insurance | 2,000.00 | 220.00 | 375.00 |
| Maximum social insurance | 12,600.00 | 1,386.00 | 2,362.50 |
| BOD | 12,600.00 | 2,646.00 | |
| ER Fund | 2,370.00 | 23.70 |
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading global employment platform. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.