Egypt Payroll Outsourcing Alert

Outsource your payroll in Egypt to Mercans to ensure your compliance with the new social security calculation rules.

Egypt introduces new Social Security contribution basis from January 1, 2019.

Effective from January 1, 2019, Egypt is amending the maximum amount used for the calculation of the variable component of the social security contributions, as follows:

Social security contribution component	Available Wages type	Monthly minimum amount of EGP	Maximum amount of EGP	Employee contribution %age	Employer contribution %age
Fixed	Basic salary	6.25	1,510	14%	26%
Variable	Basic salary exceeding the fixed component maximum amount and all other wage type	N/A	4,040	11%	24%

In accordance with the amended maximum amount, the social security contributions for an employee earning a total monthly salary of EGP 5,550 or more are calculated as summarized below:

Contributor	Fixed contribution calculation base in EGP	Variable contribution calculation base in EGP	Monthly Fixed contribution calculation base in EGP	Monthly Variable contribution calculation base in EGP	Total monthly social security contribution in EGP
Employee	1,510	4,040	211.40	444.40	655.80
Employer	1,510	4,040	392.60	969.60	1,362.20
Total			604.00	1,414.00	2,018.00

The amended rate will apply to all variable wages and salaries earned after January 1, 2019 through December 31, 2019.

Contact Mercans’ payroll outsourcing team in Egypt to ensure that your payroll calculations are accurate and compliant.