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Jan 7, 2019 1 min read

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 componentAvailable Wages typeMonthly minimum amount of EGPMaximum amount of EGPEmployee contribution %ageEmployer contribution %age
FixedBasic salary6.251,51014%26%
VariableBasic salary exceeding the fixed component maximum amount and all other wage type N/A4,04011%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 EGPVariable contribution calculation base in EGPMonthly Fixed contribution calculation base in EGPMonthly Variable contribution calculation base in EGPTotal monthly social security contribution in EGP
Employee1,5104,040211.40444.40655.80
Employer1,5104,040392.60969.601,362.20
Total604.001,414.002,018.00

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.

 

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