Guide to Hiring in Egypt

Egypt is the second-largest economy in Africa and a main hub for companies looking to access a strong pool of software developers, engineers, and support professionals. The country’s GDP is around USD 350–400B. Its economy is underpinned by the Suez Canal and their hydrocarbon industry. 

Before expanding into Egypt, you’ll need to understand contracts, taxes, wages, benefits, and other employment laws. Our guide will tell you everything you need to know about hiring in Egypt.

What to know before hiring in Egypt

If you’re looking to hire employees in Egypt for the first time, there are legal requirements to be aware of. These norms and laws influence hiring practices in Egypt and many aspects of the employer-employee relationship, including compensation and benefits. 

G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Egypt — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.

Here are five things to know about hiring in Egypt.

1. The labor market in Egypt

Egypt has a workforce of around 30 million people. The country is a regional hub for higher education due to relatively low tuition and accessible programs. 

The Science Up program and similar initiatives are modernizing research and education infrastructure in Egypt. The new administrative capital (NAC) project is underway. This aims to relieve congestion in Cairo and create a modern urban center by developing more government, educational, and commercial facilities.

2. Working hours and time off in Egypt

The maximum working hours is eight hours per day and 48 hours per week. A daily cap of 10 hours includes overtime and breaks. Overtime is paid at a minimum of 135% of the regular wage for day shifts and 170% for night shifts. Work on rest days or holidays is paid at double or triple pay.

Employees get 21 days of paid annual leave after one year of service. This increases to 30 days after 10 years of service with the same employer or at age 50. Employees in hazardous or remote areas get an extra seven days of leave.

Maternity leave is 120 days and fully paid, regardless of service length — 45 of these days have to be taken after childbirth. Employers with more than 50 employees have to offer up to two years of unpaid childcare leave.

The number of national holidays is set annually by the government and can vary. Office hours and practices during Ramadan or for Friday prayers are determined by company policy and custom.

3. Employment contracts in Egypt

Employment contracts have to be written in Arabic. You have to prepare four copies, one for the:

• Employer

• Employee

• Social insurance office

• Labor office

Compensation has to be listed in EGP. Both fixed-term and indefinite contracts are allowed. 

4. Compensation and benefits in Egypt

The minimum wage for private sector workers is EGP 7,000 per month (2025). This is set by the national wages council. All employees get social security benefits. This covers disability, pensions, sick leave, paid maternity leave, unemployment insurance, and death allowances.

Employers aren’t legally required to give private healthcare insurance or partner with a medical insurance plan. But many employers offer supplemental benefits such as private health coverage, housing stipends, or meal allowances to attract and retain talent.

Overtime pay, profit-sharing (in certain company types), and annual salary increases are regulated by law.

5. Payroll taxes in Egypt

Employers pay 18.75% and employees pay 11% of the monthly insurable salary to social insurance. There’s a supplementary system funded by a 1% contribution from both employer and employee. 

Employers have to deduct income tax from employee salaries and remit it to the Egyptian tax authority each month. All employees have to be registered with the national organization for social insurance (NOSI).

The corporate income tax rate is 22.5% on net profits. There are no extra local taxes. Resident companies are taxed on global income. Non-resident companies are taxed on Egypt-sourced income through a permanent establishment.

Top hiring hubs in Egypt

Some cities in Egypt are known for particular industries. Knowing what each region has to offer allows you to focus your hiring efforts in the right place and fill roles faster. 

The top talent hubs in Egypt are:

• Cairo is the capital and largest city. As the financial hub, Cairo is home to the Egyptian exchange (EGX) and the headquarters of banks and financial institutions. The planned new administrative capital (NAC), located east of Cairo, will become the new center of government and a key business district.

• Alexandria is Egypt’s second-largest city and a major port. Alexandria is a hub for manufacturing, logistics, shipping, and trade. The city handles 75% of Egypt’s total foreign trade volume.

• Giza is part of Greater Cairo. Giza extends Cairo's business district to the west. Giza is home to the Smart Village, a technology and business park with many multinational corporate offices, especially in the ICT and telecommunications fields.

• Mansoura is known for its advanced medical facilities. Mansoura Urology and Nephrology Center is a top regional research and treatment facility. Located in the Nile Delta, Mansoura also supports food processing and agribusiness.

• Suez is a strategic location for logistics, shipping, and energy due to the Suez Canal. It handles 12–15% of global trade and about 30% of worldwide container traffic. The canal generated USD 4B in transit fee revenues for Egypt (2024).

Key industries in Egypt

Understanding Egypt’s top industries allows you to benchmark salaries and benefits. You can use this insight to make smart choices about where to invest and grow your talent pool. 

The top industries in Egypt include:

• IT and telecommunications: Egypt has a growing IT sector. There’s a strong pool of software developers, engineers, and support professionals in the country. The country’s digital exports reached USD 6.2B (2023).

• Business process outsourcing (BPO) and shared services: Egypt is a regional hub for call centers, customer service, and back-office operations. A competitive advantage is the availability of graduates fluent in English, French, German, and Spanish.

• Energy and petrochemicals: Egypt is the second-largest producer of natural gas in Africa and the fourth-largest holder of natural gas reserves on the continent. The country has skilled professionals in engineering and project management.

• Healthcare and pharmaceuticals: Egypt's pharmaceutical market is highly localized. 91% of drugs are made within the country. There’s strong demand for medical professionals, researchers, and pharmaceutical experts.

• Construction and real estate: Ongoing infrastructure and urban development projects create opportunities in engineering, architecture, and project management. For example, the new administrative capital (NAC) is a USD 58B project east of Cairo. Designed to host government ministries, a business district, it has a target population of 6.5 million residents.

The cost of hiring an employee in Egypt

Whether you’re hiring one employee or an entire team in Egypt, expenses are inevitable. Budget for the following:

• Setting up an entity (unless you partner with an employer of record)

• Advertising job positions

• Paying referral bonuses to employees with connections in Egypt

• Paying an in-house hiring committee

• Traveling to and from Egypt, including hotel stays, meals, and transportation

• Partnering with a translator to draft documents or facilitate conversations (if applicable)

• Using a background check service for screening candidates

• Drafting compliant employment contracts, legal review, and consultation with HR and legal experts

• Costs for providing computers, phones, and software licenses

• Onboarding materials and initial training

• Costs for maintaining required tax and payroll records and documentation

According to G-P Verified Sources from Gia, the employer burden rate in Egypt, which includes costs triggered on top of salaries, is about 18.75%, excluding accident insurance that can vary. 

What does a company need to hire employees in Egypt?

Make sure you cover these essentials before expanding your team in Egypt:

• Register a local company (such as an LLC or branch office) with the general authority for investment and free zones (GAFI).

• Register with the Egyptian tax authority for corporate tax and payroll tax purposes.

• Enroll your company and employees for mandatory social insurance contributions.

• Open a local bank account.

• Draft written contracts in Arabic.

Setting up a subsidiary in Egypt can take weeks or months. Use G-P EOR to hire full-time employees in Egypt without setting up your own entity. Build your team at a lower cost and with peace of mind that you’re doing so compliantly.

The steps to hiring employees in Egypt

The hiring process in Egypt is similar to the one you’re likely familiar with in your own country. The hiring process follows five basic steps: advertising the job, evaluating applications, interviewing candidates, sending job offers, and onboarding new employees.

1. Advertising job vacancies in Egypt

Prepare a clear job description outlining responsibilities, qualifications, and compensation. Post the job on local and international job boards. Bayt, Forasna, GulfTalent, LinkedIn, and Indeed are popular job sites in Egypt. 

2. Evaluating job applications in Egypt

Review CVs and cover letters to shortlist candidates who meet the requirements.

3. Interviewing candidates in Egypt

Conduct initial interviews via phone, video, or in-person.  Gia can help you create questions that follow anti-discrimination laws in Egypt, so you can find the best fit for the role while complying with local regulations. 

Verify employment history, education, and conduct background checks if required.

4. Making job offers in Egypt

Prepare a compliant employment contract in Arabic. Clearly state the salary, benefits, job duties, and termination terms in your contract.

5. Onboarding new employees in Egypt

Now you can onboard new employees. Register your new hire with NOSI for social insurance. Set up payroll, provide orientation, and make sure the employee understands your company’s policies. Keep accurate employment records and make sure you stay compliant with Egyptian employment laws.

If you’re working with an EOR like G-P, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture. 

Hiring contractors in Egypt

Working with independent contractors in Egypt can be a cost-effective way to test the market and build a presence without the commitment of full-time employees. Contractors based in Egypt understand local consumer behavior, rules, and business practices. They’ll be ready to start working quickly with their own equipment and established work processes. 

Hiring contractors allows you to easily adjust your talent pool based on your business needs, without the complexities and costs of employment. 

Before you enter an agreement with an independent contractor in Egypt, consider the following:

1. Employees vs. independent contractors in Egypt

Employees work under the employer’s supervision and control, follow set hours and workplace rules, are integrated into the organization, and get a regular salary and benefits.

Contractors offer services independently, set their own schedules, use their own equipment, and are paid per project or milestone. They’re not subject to the employer’s direct supervision and usually work for multiple clients. Egyptian law uses a holistic assessment based on factors such as control, integration, dependency, provision of tools, contract duration, and payment method.

2. Penalties for misclassification in Egypt

Classifying someone as a contractor when they’re not can lead to severe penalties. If misclassification occurs, you’ll have to:

• Pay retroactive social insurance contributions, taxes, and benefits.

• Face administrative fines for noncompliance with labor, tax, and social insurance laws.

• Face criminal charges.

3. How to pay contractors in Egypt

G-P Contractor™ takes away the messy, time-consuming process of hiring and paying international contractors. You can create and issue contracts and pay contractors with just a few clicks, all while ensuring a compliant process.

Hire employees and contractors in Egypt with G-P

Our SaaS and AI-powered products – EOR, Contractor, and Gia – support companies as they build and manage global teams. 

G-P is the recognized leader in global employment with more than a decade of experience, the largest team of HR, legal, and compliance experts, and a global proprietary knowledge base.

Make your expansion to Egypt easier with G-P. Contact us or book a demo today.

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