Egypt sits at the intersection of Africa, the Middle East, and the Mediterranean, and is the Arab world’s most populous country with over 105 million people. Cairo and Alexandria are well-established hubs for business process outsourcing, technology services, financial services, and manufacturing, and Egypt’s large, educated, Arabic and English-speaking workforce makes it one of the most cost-competitive hiring markets across the MENA region. The Egyptian government’s active investment in digital infrastructure and economic liberalisation under the Vision 2030 programme continues to attract multinational operations and regional headquarters. For global employers, compliant hiring in Egypt now falls under the Egyptian Labour Law No. 14 of 2025, which took effect on 1 September 2025 and replaced the prior Labour Law No. 12 of 2003, alongside the social insurance framework administered by the National Organization for Social Insurance (NOSI) and personal income tax administered by the Egyptian Tax Authority (ETA).
An Employer of Record Egypt provider registers with NOSI, the ETA, and the relevant labour authorities, manages monthly payroll tax and social insurance filings, drafts Labour Law No. 14-compliant employment contracts, and handles the full employment lifecycle without requiring you to establish a local Egyptian joint-stock company (S.A.E.) or limited liability company (L.L.C.). Global Deployments provides Employer of Record services in Egypt through its vetted in-country partner network, covering employment, payroll, and compliance under one engagement, with no local entity required on your side.
The Legal Framework for Hiring in Egypt
Private sector employment in Egypt is now governed by the Egyptian Labour Law No. 14 of 2025, effective 1 September 2025. The new law introduced significant changes to maternity leave entitlements, sick leave provisions, severance pay calculations, and notice period requirements, all of which apply to employment relationships from its effective date. The Ministry of Manpower and Immigration is the primary regulatory authority for labour relations, and the Egyptian Tax Authority (ETA) at eta.gov.eg administers all income tax obligations.
All employment contracts must be in writing and registered with the Ministry of Manpower. Fixed-term contracts are permitted and widely used in Egypt. A fixed-term contract may be renewed, but repeated renewal without objective justification may create grounds for the employee to argue an implied indefinite employment relationship. Foreign nationals require a work permit from the Ministry of Manpower before commencing employment, and the permit quota system limits the proportion of foreign workers in most companies.
Key Compliance Obligations for 2026
- Income Tax Withholding: Employers must register with the ETA and withhold income tax from employee salaries monthly under the PAYE system. Monthly tax returns and remittances are due by the end of the month following payroll. An annual reconciliation return is required by 1 April for the preceding tax year. All employees are entitled to an annual personal exemption of EGP 20,000 before income tax brackets are applied.
- Social Insurance Registration: All employers must register with NOSI before the first hire and register each employee within one month of commencement. Monthly contributions (employer and employee) are calculated on the employee’s social insurance salary, which is capped between a minimum of EGP 2,700 and a maximum of EGP 16,700 per month as of January 2026. Contributions must be remitted by the 15th of the following month.
- Health Insurance Contributions: Employer and employee health insurance contributions are collected separately from general social insurance. The employer contributes 3.25% and the employee contributes 1% of the insurable salary, remitted alongside the general social insurance declaration.
- Mandatory Annual Salary Raise: The Egyptian Labour Law and associated regulations require private sector employers to grant employees a minimum annual raise of 3% of the employee’s social insurance wage, subject to a floor of EGP 250 per month per employee. This applies on the anniversary of each employment contract.
- Minimum Wage: The national minimum wage for private sector employees is EGP 7,000 per month, effective since March 2025. A further increase to EGP 8,000 per month applies to the public sector from July 2026, as announced by the Cabinet in April 2026. Businesses with fewer than ten workers are exempt from the private sector minimum wage obligation.
2026 Personal Income Tax Brackets
Egypt applies a seven-bracket progressive income tax to employment income. The EGP 20,000 annual personal exemption is subtracted from gross annual income before the brackets below are applied. Tax is withheld monthly by the employer and remitted to the ETA.
| Annual Income After Exemption (EGP) | 2026 Income Tax Rate |
| Up to EGP 40,000 | 0% |
| EGP 40,001 to EGP 55,000 | 10% |
| EGP 55,001 to EGP 70,000 | 15% |
| EGP 70,001 to EGP 200,000 | 20% |
| EGP 200,001 to EGP 400,000 | 22.5% |
| EGP 400,001 to EGP 1,200,000 | 25% |
| Above EGP 1,200,000 | 27.5% |
Brackets are applied to annual income after deducting the EGP 20,000 personal allowance. The employer’s monthly PAYE obligation is calculated by annualising the employee’s monthly salary, applying the brackets, and dividing the annual liability by twelve.
2026 Social Insurance and Health Contributions
| Contribution | Employer Rate | Employee Rate | Insurable Salary Range (Monthly) |
| General Social Insurance | 18.75% | 11% | EGP 2,700 minimum to EGP 16,700 maximum |
| Health Insurance | 3.25% | 1% | Same insurable salary range |
| Total | 22% | 12% |
Contributions are calculated solely on the insurable salary (capped at EGP 16,700 per month). Any portion of salary above the maximum insurable ceiling is not subject to social insurance contributions.
Work Standards and Leave Entitlements
The Egyptian Labour Law No. 14 of 2025 sets the standard working week at 48 hours (8 hours per day, 6 days). Overtime beyond contractual hours is compensated at 135% of the ordinary hourly rate for daytime overtime and 170% for night and Friday overtime.
- Annual Leave: 21 days of paid annual leave per year after completing one year of continuous service. Entitlement increases to 30 days per year after ten years of service with one or more employers combined, or upon reaching the age of 50.
- Sick Leave: Employees are entitled to up to six months of paid sick leave per illness episode. The first 90 days are paid at 75% of the employee’s wage, with the remaining period paid at 85%. Employers may not terminate an employee by reason of illness until the full sick leave entitlement has been exhausted.
- Maternity Leave: Under Labour Law No. 14 of 2025, employed women are entitled to four months of paid maternity leave, with no minimum service requirement. Maternity leave may be taken up to three times during the employee’s career with the same employer. Employers are prohibited from dismissing a female employee during maternity leave or upon return, unless a lawful reason unrelated to the maternity leave is established.
- Paternity Leave: The new Labour Law No. 14 of 2025 introduced statutory paternity leave for male employees. Fathers are entitled to three days of paid paternity leave on the birth of a child.
- Public Holidays: Egypt observes approximately 15 official public holidays per year, including Revolution Day (23 July), Armed Forces Day (6 October), Eid Al-Fitr, Eid Al-Adha, and Coptic Christmas (7 January). Work performed on public holidays is compensated at a premium rate.
Termination and End of Service
- Notice Period: Under the Egyptian Labour Law No. 14 of 2025, the notice period for employee resignation has been set at three months, giving employers adequate time for succession planning. Employers terminating indefinite-term contracts must also provide a prescribed notice period. Payment in lieu of notice is permitted by agreement.
- Grounds for Termination: Dismissal must be for a valid reason as defined by the Labour Law. Termination without cause or for reasons deemed unlawful entitles the employee to reinstatement or compensation through the labour courts.
- Severance Pay: Labour Law No. 14 of 2025 introduced a revised severance scale. For the first five years of continuous service, employees are entitled to one month’s salary per year of service. For each year of service beyond five years, the entitlement increases to one and a half months’ salary per year. Severance is calculated on the employee’s last drawn wage.
- Fixed-Term Contract Expiry: Expiry of a fixed-term contract at its natural end date does not trigger a severance obligation. Early termination by the employer without cause obliges the employer to compensate the employee for the remaining contract period.
- Labour Court Jurisdiction: Disputes arising from employment relationships in Egypt are referred to the specialised Labour Courts. Prior conciliation through the Ministry of Manpower is typically required before judicial proceedings can be initiated.
Why Use an Employer of Record in Egypt
Establishing a legal entity in Egypt requires registration with the General Authority for Investment and Free Zones (GAFI), tax registration with the ETA, social insurance registration with NOSI, and compliance with the foreign worker quota rules that apply from the first hire. For companies testing the Egyptian market or hiring a small team, the EOR model eliminates setup costs and provides immediate payroll and employment compliance from day one.
Global Deployments provides Employer of Record services in Egypt through its vetted in-country partner network, managing employment contracts under the new Labour Law No. 14 of 2025, monthly ETA tax filings, NOSI social insurance and health insurance contributions, mandatory annual salary raises, and compliant offboarding under one engagement.
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Conclusion
Hiring compliantly in Egypt in 2026 requires navigating the updated Labour Law No. 14 of 2025, active management of monthly ETA income tax withholding, NOSI social insurance and health insurance contributions within the updated EGP 2,700 to EGP 16,700 insurable salary bands, the EGP 7,000 private sector minimum wage, and mandatory annual salary raise obligations. The Egyptian Tax Authority (ETA) at eta.gov.eg and the National Organization for Social Insurance (NOSI) are the primary regulatory bodies governing employer obligations. An Employer of Record partner with in-country expertise in Egypt removes the entity requirement and manages the full compliance stack, so your Egypt team is onboarded, paid, and legally protected from day one.
