NelsonHall recognizes Mercans as leader in payroll services. Free Report
Jul 4, 2018 1 min read

Payroll Outsourcing Alert-Egypt

Contact Mercans’ Payroll Outsourcing Team in Egypt for Guaranteed Compliance.

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 July 1, 2018.

Effective from July 1, 2018, Egypt is amending the minimum and maximum amounts used for the calculation of the fixed and variable components of the social security contributions, as follows:

Social Security Contribution ComponentApplicable Wage TypesMonthly Minimum Amount in EGPMaximum Amount in EGPEmployee Contribution %ageEmployer Contribution %age
FixedBasic Salary6251,51014% 26%
VariableBasic Salary exceeding the Fixed Component maximum amount and all other wage typesN/A 3,36011% 24%

In accordance with the amended minimum and maximum amounts, the social security contributions for an employee earning a total monthly salary of EGP 4,870 or more are calculated as summarized below:

ContributorFixed Component Calculation Base in EGPVariable Component Calculation Base in EGPMonthly Fixed Component Employee Contribution in EGP Monthly Variable Component Employee Contribution in EGP Total Monthly Social Security Contribution in EGP
Employee1,5103,360211.40369.60581.00
Employer1,5103,360392.60806.401,199.00
Total604.001,176.001,780.00

The amended rates will apply to all wages and salaries earned after July 1, 2018 through June 30, 2019.

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

Most viewed posts

View all posts

NelsonHall names Mercans as Global Payroll Technology Leader

Top business process services (BPS) and IT services (ITS) research and analysis firm recognised Mercans as a payroll tech leader

Sep 20, 2022 3 min read

Singapore – Social Security Rate Change

CPF contributions for individual aged 55 to 70 and who earn less than 750 Singapore dollars per month will increase effective from January 2023.

Sep 15, 2022 1 min read

Lebanon – Transportation Allowance Modification

On 12 August 2022, the President of the Republic of Lebanon signed Decree 9849 which modified the daily transportation allowance as per below: Each day of actual attendance at the work premises will be remunerated at a rate of 95,000 LBP for pri

Sep 1, 2022 1 min read

Client success story: International SOS

International SOS achieved sustainable global payroll process optimization through transitioning away from a legacy provider down to a single payroll management system

Aug 1, 2022 3 min read

Client success story: Kratos

Global payroll solution that complies with US Government contracting requirements

Jul 18, 2022 3 min read

Payroll Technology Firm Mercans Appoints Andre Voolaid to its Board

Andre’s appointment to the board demonstrates Mercans’ vision of becoming the global payroll technology leader.

Jul 18, 2022 2 min read