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