Egypt Social Security Calculations Change
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Global Payroll Outsourcing Provider Issues a Statutory Change Alert for Egypt
Egypt introduced new Social Security contribution rules. Outsource your payroll in Egypt to Mercans to ensure compliance with the new social security calculation rules.
Egypt Social Security calculation rules have changed. Effective from January 1, 2020, the government of Egypt has amended the Social Insurance contributions calculation process. The contributions are no longer calculated based on fixed and variable contribution basis but based on the actual salaries subject to social security at an employee contribution rate of 11% and 18.75% contribution rate for employers. The social security contributions are subject to a contribution base minimum/floor amount of EGP 1,000 and maximum/ceiling of EGP 7,000 per month.
| Social Security Contribution Base | Monthly Amount in EGP | Employee Contribution %age | Employer Contribution %age |
|---|---|---|---|
| Minimum/Floor | 1,000 | 11% | 18.75% |
| Maximum/Ceiling | 7,000 | 11% | 18.75% |
Accordingly, the minimum and maximum employee and employer social security contributions are calculated as follows:
| Contributor | Monthly Contribution Floor in EGP | Monthly Contribution Ceiling in EGP | Minimum Monthly Social Security Contribution in EGP | Maximum Monthly Social Security Contribution in EGP |
|---|---|---|---|---|
| Employee | 1,000 | 7,000 | 110.00 | 770.00 |
| Employer | 1,000 | 7,000 | 187.50 | 1,312.50 |
The amended rates will apply to all wages and salaries earned on January 1, 2020