Hire in Egypt

EOR in Egypt

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Egypt, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Egypt―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Egypt and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Egypt

Employment relations in the private sector in Egypt are governed by Egyptian Labor Law Number 12 from 1973, as well as several ministerial decrees. The law is comprised of 257 articles that cover all legal aspects of the employment relationship in Egypt.

Employment contracts in Egypt

As you look to hire employees in Egypt, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The law restricts the workday to eight hours, with a maximum of 48 hours per week. After five consecutive hours, employees are entitled to a break. Likewise, after six consecutive days of work, they are entitled to a day off.

Employees cannot be required to work more than two hours of overtime per day.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• The National Wages Council has the authority to set minimum wages. Effective January 2024, the private sector minimum wage is 3,500 Egyptian pounds per month.
• For any work over eight hours, employees are entitled to 35% of their regular wages for overtime performed during daylight hours, and 70% for overtime performed at night.
• Weekend work requires double their rate of pay and an additional day off. Those working during their vacations also must receive double pay.

As your employer of record in Egypt, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

There are no provisions in the Labor Law governing bonuses.

Probationary period

Probationary periods may not exceed three months, and an employee cannot be required to work on probation more than once with the same employer.

Termination and severance

Employers must notify employees of termination in writing. The amount of notice required is based on an employee’s length of service:

• Less than 10 years: Two months
• 10 consecutive years or more: Three months

In the absence of a grave fault, termination is typically considered wrongful, and the employer is liable for compensation ranging from two months’ salary for each year of service to the employee’s gross salary for the remaining contract period, depending on the type of contract.

Employees may terminate their contract for legitimate health, social, or economic reasons and generally are required to give two- or three months' notice unless first exempted by their employer.

During probationary periods, employees may be terminated without cause or notice.

Under the Labor Law, there is no end-of-employment gratuity. The employer is obligated to pay only the amount it owes the employee unless the employer has contractually agreed to pay severance.

Employee benefits and paid leave in Egypt

When negotiating terms of an employment contract with a candidate in Egypt, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Pregnant employees who have worked for an employer for at least 10 months are entitled to 90 days of paid maternity leave and may not return to work for at least 45 days after childbirth. Working mothers also have the right to up to two years of unpaid maternity leave. Maternity leave is only granted twice to an employee by the same employer.

Vacation

Employees who have completed at least one year of continuous service with an employer are entitled to 21 days of paid leave per year. After working for 10 consecutive years or reaching the age of 50, that increases to 30 days.

Employers may determine the dates of annual leave, although employees are entitled to take at least six days consecutively.

Additionally, after five continuous years of service with an employer, employees are entitled to one month of paid leave to perform the Hajj pilgrimage to Mecca or to visit Jerusalem. This leave is only given once.

Holidays

Employees are entitled to leave with full pay for the following public holidays, the dates for most of which vary year to year according to the lunar calendar:

• Islamic New Year
• Birthday of Prophet Mohammed
• Eid al Fitr (two days)
• Eid al Adha (three days)
• Eastern Christmas
• Revolution Day
• Sham El Nessim
• Sinai Liberation Day
• Labor Day
• Revolution Day
• Armed Forces Day

Employees can be asked to work on a public holiday, provided there is a legitimate business need.

Sick leave

Employees whose sickness has been confirmed by a medical authority are entitled to sick leave paid at the rate of 75% of their social insurance wage for 90 days, after which the rate increases to 85%. The maximum period of sick leave is 180 days.

Annual leave can also be used for sick leave, and sick leave can be converted into annual leave.

Health coverage

An employee may retire with a full pension at age 60 with 120 months of contributions to the social security system, at any age with 240 months of contributions.

Under Egypt’s Social Insurance Law, Egyptian nationals receive pension, old age and survivor benefits. Expatriate workers, except those whose countries have treaties with Egypt for reciprocal social insurance treatment, are not covered by the law and are not required to pay social insurance contributions. Even if the employee is not subject to the law, however, the employer must pay a monthly contribution to the Ministry of Social Solidarity.

Additional benefits

In addition to healthcare benefits, employees in Egypt are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Egypt, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: February 13, 2024

Employee onboarding with an employer of record in Egypt

We write and validate all local employment contracts, streamlining the onboarding process for you and your Egyptian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Egypt, we will:

• Schedule a welcome call to discuss HR and employment information for Egypt, as well as answer any questions 
• Prepare a customized employment contract in English and in Arabic (or other local language)
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Egypt employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Egypt. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.