Employer of Record (EOR) Egypt

An Employer of Record (EOR) Egypt, often referred to as a Global Professional Employer Organization (Global PEO) Egypt, is the official employer for workers in Egypt. The EOR Egypt takes on a range of critical employment responsibilities, ensuring both legal compliance and operational efficiency.

Mercans Employer of Record Egypt provide a seamless and hassle-free solution for businesses looking to expand their global presence without the need for local entity setup. With a strong emphasis on legal compliance and intellectual property protection in Egypt, our EOR services enable your business to concentrate on its core operations. Furthermore, our services facilitate the seamless management of global workforce mobility, work visas, and the development of an efficient and diverse global team in Egypt.

Things you need to know before hiring in Egypt

EOR Solutions in Egypt

Employees vs Independent Contractor Compliance

The following are the main differences between employees and independent contractors, also sometimes called freelancers or part-timers in Egypt:

Employment Contracts in Egypt

You need to consider a number of key factors when dealing with employment contracts in Egypt. Listed below are a few to help you prepare:

This overview highlights key aspects of employment contracts in Egypt, but it’s essential to consult with legal experts at Mercans for specific guidance and to ensure compliance with local labor laws and regulations.

Social Security in Egypt

Egypt’s Social Protection

Egypt’s social protection system has undergone significant reforms in recent years. Social Insurance and Pensions Law No. 148 of 2019 unified much of the social insurance framework, covering old-age pensions, disability, survivors, work injury, unemployment, and other protections. Egypt has also continued implementing its universal health insurance program and broader cash-support initiatives for eligible households.

Social Security

Who is Subject to Social Security Contributions?

Social security contributions in Egypt generally apply to employees registered under the Egyptian social insurance system, including Egyptian nationals and, in practice, foreign employees where the law requires their inclusion.

Exemptions

Social security contributions are subject to minimum and maximum insurable salary limits, which are adjusted periodically under the social insurance rules.

Contribution Rates

• Employee contribution: 11% of the social insurance salary.
• Employer contribution: 18.75% of the social insurance salary.

Various income elements may be taken into account for social insurance purposes under the comprehensive insurable salary concept, subject to Egyptian social insurance law and payroll practice. This generally includes the insurable elements of remuneration reported to the National Organization for Social Insurance (NOSI).

• Base salary and other insurable wage elements
• Allowances and fixed remuneration elements to the extent treated as insurable
• Incentives, commissions, and similar payments where reportable under the applicable rules
• Additional remuneration elements included in the insurable salary base

Partial Periods (Starters, Leavers, Unpaid Leave, and Salary Changes)

• Social insurance treatment for joiners, leavers, unpaid leave, and salary changes depends on the applicable payroll period rules and the employee’s registration status with NOSI.
• Employers should update employment status and salary data promptly to keep filings aligned with statutory records.
• Unpaid leave scenarios should be reviewed carefully, as contribution treatment can vary depending on the facts and the applicable legal basis.

Declaration and Remittance

Social Security deductions and contributions must be reported and remitted within the applicable statutory deadlines to NOSI using the required filing and payment channels.

Law and Authorities

The National Organization for Social Insurance (NOSI) is the governing body responsible for social security administration in Egypt.

Initial Employer Registration with the Social Security Authority

To initiate registration with the Social Security Authority, companies typically provide corporate registration and authorization documents to NOSI, such as:

• Commercial Register
• Tax Card
• Power of Attorney designating the authorized representative
• Articles of Association or equivalent incorporation documents
• Authorized signatory documents, where required

Registration of New Hires and Leavers with the Social Security Authority

New hires and leavers should be registered or updated with NOSI in line with the applicable statutory procedures. Required documents commonly include the employment contract or appointment document, National ID or passport copy, proof of date of birth, and supporting qualification or professional membership documents where relevant.

Registration of Salary Changes

Salary changes should be reported to NOSI in line with the applicable forms and timelines so that social insurance records remain accurate.

Social Insurance in Egypt

The law uses a comprehensive social insurance salary concept for insurable remuneration. As of 1 January 2026, the current thresholds are:

• The minimum insurable salary is EGP 2,700 per month.
• The maximum insurable salary is EGP 16,700 per month.

These minimum and maximum limits continue to increase annually in line with the statutory social insurance adjustment mechanism.

Payroll in Egypt

Minimum Wages in Egypt

Egypt has established minimum wage regulations, with the current private sector minimum wage set at EGP 7,000 per month.

Egypt Employee Hiring Cost

To calculate the total cost of hiring an employee in Egypt, you need to consider various employer costs in addition to the employee’s gross annual salary. Here’s the breakdown for an illustrative gross monthly salary of EGP 7,000.00:

• Gross Annual Salary: EGP 84,000.00
• Total Annual Employer Costs: EGP 15,750.00
• Total Annual Cost: EGP 99,750.00

The “Total Annual Employer Costs” represent the additional statutory employer expense based on the standard employer social insurance contribution rate of 18.75% on an insurable monthly salary of EGP 7,000. Other benefits, allowances, insurance programs, and role-specific costs may increase the total employment cost further.

Termination in Egypt

In Egypt, termination laws are impacted by several factors. Listed below are a few important points to keep in mind:

• End Of Employment Contracts’ Duration: Fixed-term contracts typically end on the agreed expiry date, subject to the contract terms and any applicable statutory restrictions on early termination.
• Employment Contracts for Specific Task: Contracts created for a specific task generally end upon the completion of that task, subject to the contract terms and applicable law.
• Indefinite Employment Contracts: Either party may terminate an indefinite employment contract by giving at least three months’ written notice, subject to the legal grounds and procedures required under Egyptian labor law.
• Dismissal Of Employees: Employers can dismiss employees only on legally valid grounds and in accordance with the disciplinary and judicial procedures required by Egyptian labor law.
• Employee’s Incapacity: Total incapacity of an employee may lead to termination in accordance with applicable labor and social insurance rules. Partial incapacity cases should be assessed individually.
• Employee’s Sickness: Employees generally cannot be terminated due to illness until the applicable sick leave and remaining annual leave entitlements have been exhausted, in line with the law.
• Retirement: The statutory retirement age in the social insurance system remains an important consideration for workforce planning and end-of-service treatment.
• Female Employee’s Right To Terminate: Female employees continue to benefit from statutory labor protections relating to maternity and workplace rights under Egyptian law.
• Termination For Disciplinary Reasons: Disciplinary dismissal must follow the procedures and grounds prescribed by law.
• Termination For Economic Reasons: Employers can terminate employment contracts due to economic necessities, subject to the procedures and approvals required by law.
• Resignation: Resignation should be submitted in writing and handled in line with the applicable labor law formalities.
• Unlawful Termination: Some reasons for termination are considered illegitimate, and the party responsible for an unlawful termination may be required to compensate the other party for any damages incurred.
• Death Of Employee: The employment contract ends upon the death of the employee, with any final statutory dues and entitlements to be handled in accordance with law.
• Notice of Termination: For indefinite contracts, the current labor law generally provides for at least three months’ written notice.

Employee Benefits in Egypt

In Egypt, labor laws provide important protections for employees. Employees are generally entitled to statutory protections such as social insurance, paid annual leave, sick leave, maternity leave, and other labor rights, while independent contractors are not covered in the same way.

Key labor protections in Egypt include

• Mandated Annual Raises The current labor law provides for a periodic annual increment of not less than 3% of the employee’s social insurance salary, subject to the law and any approved exceptions.
• Equal Opportunity Discrimination in training, job advertisements, hiring, work conditions, and employment rights based on protected characteristics is prohibited.
• Minimum Wage The current private sector minimum wage is EGP 7,000 per month.
• Annual Leave Employees are entitled to paid annual leave, with 15 working days in the first year and 21 days from the second year, increasing further in specified cases under the current law.
• Maximum Work Hours The maximum actual workday is 8 hours, and the maximum actual work week is 48 hours, excluding rest breaks.
• Termination Rules Open-ended contracts can be terminated with written notice and in compliance with the legal grounds and procedures set by law.

Hiring

Employers are allowed to request certain information from job candidates, but discrimination based on protected grounds is prohibited. The employment contract should be prepared in Arabic or include an Arabic version where needed for local compliance.

Statutory Benefits in Egypt

Full-time employees in Egypt are entitled to various statutory benefits, including:

• Minimum Wage and Overtime Minimum wage rules apply, and overtime must be compensated in accordance with Egyptian labor law.
• Leave Allowances Annual leave starts at 15 working days in the first year and increases under the law depending on service and employee status.
• Health Insurance and Social Security Employers must comply with applicable health insurance and social insurance obligations.
• Maternity Leave Female employees are entitled to four months of paid maternity leave, including the period before and after childbirth, subject to the legal conditions.
• Disability Insurance Employees registered under social insurance may qualify for work injury and disability protections.
• Unemployment Compensation Unemployment benefits are available to eligible insured employees under the social insurance system.
• Termination Rules Specific termination rules are in place, including notice and procedural requirements.

Supplemental benefits can include home office supplies, flexible scheduling, bonuses, additional paid time off, and health and wellness programs.

To stay compliant and ensure accurate payments, especially for international employees, consider using a Professional Employment Organization (PEO) like Mercans. A PEO handles payroll, taxes, and benefits, keeping your company in compliance with local labor laws. This is essential when hiring remote employees in Egypt or other countries.

Personal Income Tax in Egypt

Egypt has progressive income tax rates and rules that are subject to change as legislation changes. To get an idea of the updated, most recent rates, please read below:

*EGP stands for Egyptian pounds Individual income tax is applicable to resident individuals for income earned in Egypt and income earned outside Egypt for resident individuals whose center of commercial, industrial, or professional activities is in Egypt. It also applies to the income of non-resident individuals for income earned in Egypt. Both residents and non-residents are currently entitled to an annual salary tax exemption of EGP 20,000.

Work Permit in Egypt

In Egypt, foreign nationals who plan to work generally need the appropriate immigration status and work authorization. In practice, this commonly involves an entry visa where applicable, a residence permit, and a work permit approved through the relevant Egyptian authorities. The process can take time and document requirements vary depending on nationality, profession, and employer profile.

You can obtain guidance on the process through the relevant Ministry of Labour channels and the competent immigration authorities.

Essential documents required for the application commonly include:

A valid passport and valid Egyptian residence status, where applicable

• Passport-size photos
• Employer incorporation and registration documents
• Employer tax documents
• Academic and professional credentials
• Commercial register and related corporate documents from the employer
• Professional licenses or regulatory approvals, where required
• Employer sponsorship and authorization documents
• Medical and security clearances, where required by the authorities
• A justification from the employer explaining the need to hire a foreign national

Employer of Record Cairo

Mercans proudly owns and operates an established entity in Cairo, Egypt. We offer a wide range of services designed to facilitate and support foreign companies seeking to expand their operations into this dynamic market. From handling complex employment procedures to ensuring compliance with local labor laws, Mercans is here to provide the expertise and support you need.

Global Employment Services in Cairo

Best Employer of Record Egypt

Mercans Stands Out as the Leading Employer of Record in Egypt for the Following Reasons:

• Regulatory Compliance: Mercans ensures full compliance with all regulations set by the Ministry of Labour and relevant Egyptian authorities. It strictly adheres to Egypt’s employment laws and standards, guaranteeing full legal compliance.
• Independent Operation: Operating as a distinct entity, Mercans offers reliable and customised employment services tailored to the unique needs of businesses in Egypt.
• Diverse Employment Support: Mercans efficiently manages various forms of employment, including employees, freelancers, contractors, and expatriates, providing flexible solutions to meet a wide range of workforce needs.
• Enterprise-Focused Solutions: Specifically designed to cater to large enterprises, Mercans delivers scalable and sophisticated services that accommodate complex organisational structures.
• Multi-Currency Payroll Management: Mercans facilitates payroll processing in multiple currencies, ensuring seamless financial operations for businesses operating in Egypt and internationally.
• Global Reach and Payroll Expertise: With a robust international presence, Mercans excels in managing multi-country payroll, enabling smooth operations across borders.
• Data Protection and Compliance: Mercans adheres to rigorous data protection standards, including GDPR compliance and SOC 1 & SOC 2 certifications, ensuring the highest levels of data security.
• ISO Certifications: Mercans holds ISO 20000 and ISO 27001 certifications, reflecting its commitment to excellence in IT service management and information security.
• Security Standards Compliance: Mercans meets the OWASP ASVS 3.0 standards, ensuring strong security practices in application development and management.
• HR Blizz Platform: The proprietary HR Blizz platform is a global payroll and talent management SaaS suite that streamlines payroll processes while ensuring compliance with Egypt’s regulations. With over 1,000 local experts, it provides in-depth knowledge of employment laws and business practices.
• G2N Nova Payroll Engine: G2N Nova offers global gross-to-net payroll processing across more than 100 countries, making it one of the most advanced payroll engines available. It can be deployed as a SaaS solution or integrated seamlessly with major Human Capital Management and Workforce Management systems.