Guide to employment, payroll and benefits in

Egypt

Rivermate offers complete payroll, benefits and compliance services for

Egypt

01. Overview

Last updated: 

August 19, 2021

Currency
Egyptian Pound
Capital
Cairo
Ease of doing business
Language
Arabic
Population
102334404
GDP growth
4.18%

02. Grow your team in

Egypt

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Egypt

, particularly if you don't have established local relationships. You can hire employees in

Egypt

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Egypt, officially the Arab Republic of Egypt, is a transcontinental country that spans the Sinai Peninsula, which connects the northeastern corner of Africa to the southwest corner of Asia. Egypt is a Mediterranean country bordered to the northeast by the Gaza Strip and Israel, to the east by the Gulf of Aqaba and the Red Sea, to the south by Sudan, and to the west by Libya. Jordan is across the Gulf of Aqaba, Saudi Arabia is across the Red Sea, and Greece, Turkey, and Cyprus are across the Mediterranean, but none of them share a land border with Egypt. Egypt has one of the longest histories of any nation, dating back to the 6th–4th millennia BCE along the Nile Delta. Ancient Egypt is regarded as the birthplace of civilization, having witnessed the emergence of literature, agriculture, urbanisation, organized religion, and central government. The ruins of Memphis, Thebes, Karnak, and the Valley of the Kings, as well as the Giza Necropolis and its Great Sphinx, represent this legacy and remain a significant subject of science and popular interest. Egypt's long and rich cultural heritage is an important part of its national identity, reflecting the country's unusual transcontinental position, which encompasses the Mediterranean, Middle East, and North African regions. Egypt was an early and important Christian center, but it was largely Islamized in the seventh century and is now mostly Muslim, though with a substantial Christian minority. Egypt became a monarchy in 1922, when it declared independence from the British Empire. Egypt proclaimed itself a republic after the 1952 revolution, and in 1958 it joined with Syria to create the United Arab Republic, which lasted until 1961. Egypt experienced social and religious unrest as well as political turmoil in the second half of the twentieth century, fighting numerous armed conflicts with Israel in 1948, 1956, 1967, and 1973, and occupying the Gaza Strip intermittently until 1967. Egypt signed the Camp David Accords in 1978, formally withdrawing from Gaza and acknowledging Israel. Political instability, including the recent 2011 revolution and its aftermath, as well as terrorism and economic underdevelopment, continue to plague the region. Egypt's new government, a semi-presidential republic, has been labeled authoritarian or leading an authoritarian regime by a number of human rights watchdogs, who blame it for the country's poor human rights record. Egypt's official religion is Islam, and its official language is Arabic. Egypt is the most populated country in North Africa, the Middle East, and the Arab world, with over 100 million people, the third most populous in Africa, and the thirteenth most populous in the world. The vast majority of its inhabitants live along the Nile River's banks, which cover an area of about 40,000 square kilometers and contain the only arable land in the country.

04. Public holidays

05. Types of leave

Paid time off

Annual leave in Egypt is 21 days. After 6 months of service, you are entitled to benefits.Annual leave is 30 days for employees who have worked for more than ten years.Employees above the age of 50 have the right to take 30 days off.

Public holidays

Egypt recognizes fourteen public holidays.

Sick days

An employee can take up to 6 months of paid maternity leave, but they must have a doctor's note.The employee is entitled to 75 percent of their wages for the first 90 days of sick leave.The employee is entitled to 85 percent of their wages for the next 90 days.Employees can turn their annual leave days to sick leave if necessary.

Maternity leave

For any infant up to three years, female employers who have contributed to social security for the previous ten months are entitled to up to three months of maternity leave and 75 percent of their last salary.For the next 24 months after the woman returns to work, she is entitled to two half-hour breastfeeding periods or a combined hour per day.Employers with more than 100 staff must either have an in-house nursery or be responsible for putting the infant in nursery care before he or she reaches the age of schooling.

Paternity leave

There are currently no provisions in the Egyptian law regarding paternity leave.

Parental leave

For each boy, the mother is entitled to 24 months of unpaid leave if the business has more than 50 workers.The right to work flexible hours is not required of workers with dependents, although it is always stipulated in the job contract.

Other leave

Job-related injury leave: From the first day after the injury before the employer is cleared to return to work or is deemed medically injured, 100 percent of the wage is paid.

06. Employment termination

Termination process

Terminating an employment contract before to the contract's expiration date is extremely difficult and is often regarded wrongful termination unless the dismissal is based on a "fundamental breach" of the contract, which is defined as follows: falsifying/forging identification; violating safety instructions; being absent for twenty or more non-consecutive days or ten consecutive days in a year; disclosing employer secrets that result in significant loss; competing with the employer in the same field of work; intoxication during work hours; and physical altercations with the employer or other employees; professional incompetence.


Unjustified termination of a fixed-term employment contract: The employer must compensate the employee for the wages they would have earned had they fulfilled their employment contract.


Termination of an indefinite contract without a justifiable clause: Employer is required to pay no less than two months' salary for each year of service.


Compensation for unjust dismissal shall be agreed upon, but cannot be less than two months' salary.

Notice period

The duration of the notice period is determined by the employee's length of service. The notice period is two months for employees with less than ten years of service. The notice period is three months for employees who have been with the company for more than ten years.

Severance pay

Severance pay is not required in Egypt unless specifically stated in the employment contract.

Probation period

The probation period lasts for up to three months.

07. Working hours

General

The standard workweek is 48 hours and each day is eight hours, with at least one hour of rest. Employees should receive a minimum of 24 hours of rest per week.


An employee shall not be required to work more than five consecutive hours per day without taking at least ten hours of rest, including overtime.

Overtime

Daily overtime is limited to two hours. Overtime is compensated at a rate of 135 percent of regular pay during the day and 170 percent during the night.

08. Minimum wage

General

Egypt's monthly minimum wage is 2,400 EGP.

09. Employee benefits

General

Private businesses must offer free health care to Egyptian workers, either via the Ministry of Social Insurance's Medical Insurance Plan or privately.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Egypt

to hire a team takes time, money, and effort. The labor law in

Egypt

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Egypt

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Egypt

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Egypt

via our Employer of Record / PEO solution.

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