In Egypt, the law mandates a comprehensive package of benefits for all employees who meet the eligibility criteria. These benefits are designed to provide social security and financial protection throughout employment.

Social Security and Health Insurance

Egypt's social security system is a cornerstone of mandatory employee benefits. The Egyptian Social Security Organization (EOSSO) administers these benefits, funded through contributions from both employers and employees.

• Coverage: Full-time and part-time employees, as well as temporary workers employed for more than six continuous months, qualify for social security benefits.
• Contributions: Employers contribute a set percentage of the employee's salary towards social security, while employees also contribute a portion.
• Benefits: Social security provides various benefits, including:
  • Health Insurance: Covers medical expenses, hospitalization, medications, and maternity care.
  • Disability Insurance: Provides income support in case of permanent or temporary disability.
  • Old-Age Pension: Offers financial security upon retirement, with benefits calculated based on contributions and years of service.
  • Survivor's Benefits: Provides financial support to the families of deceased insured employees.

Paid Time Off

Egyptian labor law guarantees employees various types of paid leave to ensure rest and recuperation:

• Annual Leave: Employees are entitled to 21 days of paid annual leave after working for at least six consecutive months. This entitlement increases to one month of leave after ten years of service or upon reaching the age of 50.
• National and Religious Holidays: All employees are entitled to paid leave on the 12 official national holidays declared by the government each year. Additionally, Muslim employees who have worked for the company for five continuous years are eligible for a one-time, one-month paid leave for pilgrimage (Hajj).
• Sick Leave: Employees are entitled to paid sick leave for a limited period, with the specific duration determined by the nature of the illness and doctor's recommendations.
• Maternity Leave: Female employees are entitled to 90 days of paid maternity leave, followed by an additional 45 days of unpaid leave if they choose.

Other Mandatory Benefits

• End of Service Gratuity: Upon termination of employment, employees are entitled to a one-time severance pay (end of service gratuity) calculated based on their last salary and years of service.
• Overtime Pay: Employees who work beyond their regular working hours are entitled to overtime pay at a higher rate than their regular salary.

In Egypt, many employers go beyond the mandatory benefits and offer optional perks to attract and retain top talent. These benefits can be categorized into financial benefits, health and wellness benefits, work-life balance benefits, and other benefits.

Financial Benefits

• Profit Sharing: Some companies offer employees a share of the company's profits as an incentive for high performance.
• Performance Bonuses: Employers may grant bonuses based on individual or company performance goals.
• Meal Allowances: This benefit helps offset employee lunch costs, boosting overall compensation.
• Transportation Allowances: Companies might offer financial support for commuting expenses to ease transportation burdens and attract a wider talent pool.

Health and Wellness Benefits

• Life Insurance: Employers may provide life insurance to financially protect employees' families in case of death.
• Disability Insurance: This benefit offers financial support to employees who become disabled and unable to work.
• Gym Memberships or Fitness Programs: Companies might subsidize gym memberships or on-site fitness programs to promote employee health and well-being.

Work-Life Balance Benefits

• Flexible Work Arrangements: This could include remote work options, flexible working hours, or compressed workweeks to provide employees with greater control over their schedules.
• Childcare Assistance: Employers might offer on-site childcare facilities or financial aid for childcare expenses to support working parents.
• Paid Parental Leave: While maternity leave is mandatory, some companies extend paid leave beyond the legal minimum for both mothers and fathers.
• Wellness Programs: Companies may invest in employee wellness programs that offer stress-reduction techniques, health screenings, or access to mental health resources.

Other Benefits

• Company Discounts: Employees might receive discounts on company products or services.
• Educational Assistance: Employers may offer financial aid or tuition reimbursement for employees pursuing further education.

In Egypt, health insurance for employees is a mandatory benefit under Social Insurance Law No. 79 of 1975. This law establishes the Social Insurance Organization (SIO) which provides a baseline level of health coverage for employees.

Employer Contributions

Employers in Egypt are required to deduct and pay 4% of the employee's monthly salary towards social insurance, with a minimum contribution of EGP 50. These contributions go towards covering the employee's sickness, treatment, and work injuries.

Employee Contributions

Employees, on the other hand, contribute 1% of their monthly salary towards social insurance. This contribution is also mandatory and is deducted directly from the employee's salary.

In Egypt, employees have access to a variety of retirement planning options, including public and private plans, to secure their financial future.

National Organisation for Social Insurance (NOSI)

Egypt's public pension scheme is managed by the National Organisation for Social Insurance (NOSI). It offers both contributory and non-contributory benefits:

• Contributory Scheme: This scheme is available to all residents aged 65 and above who have a history of contributions. Both employers and employees contribute a portion of the salary. The benefits are attractive, with retirees receiving a monthly pension equal to 75-88% of their last net salary before retirement, based on contribution length.

• Non-Contributory Scheme: This scheme provides support to low-income Egyptians aged 65 and above who haven't contributed to the social security system. They receive a monthly payment equivalent to 18% of the national salary after tax.

Employer-Sponsored Pension Plans

Many companies in Egypt offer pension plans as part of their employee benefits package. These plans can be structured in two ways:

• Defined Benefit Plans: Under this plan, the employer pre-determines the retirement benefit amount, typically a percentage of the employee's final salary based on years of service.

• Defined Contribution Plans: In this plan, both the employer and employee contribute a fixed amount towards the employee's retirement savings account. The final retirement benefit depends on the amount contributed and the investment returns generated.

Individual Retirement Accounts (IRAs)

Egypt offers Individual Retirement Accounts (IRAs) for individuals to manage their retirement savings independently. There are two main IRA types:

• Traditional IRA: Contributions to a traditional IRA may be tax-deductible, reducing your current taxable income. However, withdrawals during retirement are taxed as ordinary income.

• Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, but qualified withdrawals during retirement are typically tax-free.

Private Retirement Plans

Financial institutions in Egypt offer various private retirement plans to help individuals save and invest for their golden years. These plans often combine elements of savings and life insurance, providing a guaranteed payout upon retirement or death benefit for beneficiaries.

• Long-Term Savings & Protection Plans: These plans allow for regular contributions and offer potential returns through investment alongside a life insurance benefit.

• Unit-Linked Life Insurance Plans: These plans link your investment to life insurance coverage. The value of your retirement benefit grows based on the performance of the underlying investment units.