Egypt Employer of Record

Egypt employer of record

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, Global Employment Outsourcing (GEO), 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. 

Since employment in Egypt is highly regulated, it is essential that all employment practices and contracts are compliant. As your employer of record and PEO in Egypt, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change. 

Employment contracts in Egypt

As you look to hire employees in Egypt, here are some common 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.

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

  • There is no minimum wage in the private sector.
  • For any work over eight hours, employees are entitled to 135% of their regular wages for overtime performed during daylight hours, and 170% for overtime performed at night. Employees may not work more than two hours of overtime per day. 
  • Weekend work requires double wages and an additional day off. 
  • Collective agreements may regulate the legal salary range.

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
Bonuses are given by some employers, but they are not mandatory.

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

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 

Employers may not terminate an employee unless the employee has committed a “grave fault,” which is defined as follows: 

  • Assuming a false identity or submitting false documents
  • Committing an act that causes serious damage to the employer, as long as the employer notifies the authorities within 24 hours 
  • Failing to observe written safety regulations
  • Being absent without cause for more than 10 consecutive days or 20 nonconsecutive days in one year 
  • Divulging business secrets
  • Competing with the employer 
  • Being drunk or under the influence of drugs at work
  • Assaulting a manager 
  • Breaking the rules that govern a strike

Employees who are terminated for committing a grave fault are not entitled to compensation.

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. 

As your employer of record in Egypt, we can work with you to quickly handle the unforeseen event of an employee termination, providing legal guidance and a personalized process that ensures you stay out of labor court.

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 at least 10 months are entitled to 90 days’ 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’ 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.

Employees required to work on vacation are entitled to double pay.

Holidays
Employees are entitled to leave with full pay for 14 public holidays: 

  • Islamic New Year
  • Birthday of Prophet Mohammed
  • Eid al Fitr (2 days) 
  • Eid al Adha (3 days)
  • Eastern Christmas
  • Revolution Day 
  • Sham El Nessim
  • Sinai Liberation Day 
  • Labor Day
  • Revolution Day 
  • Armed Forces Day

Employees required to work on a public holiday are entitled to double their normal wages.

Sick leave
Employees are entitled to sick leave and receive 75% of their social insurance wages for up to 90 days, and 85% after 90 days. The maximum length of sick leave is 180 days. A medical certificate is required.

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

Health coverage
The Ministry of Health provides free healthcare to all Egyptian citizens and some other residents; however, the quality of care and facilities is low and waiting times can be long. As a result, many prefer to pay out of pocket for private healthcare.

There are two healthcare insurers in Egypt. Both run under government supervision.

  • The Health Insurance Organization (HIO) covers students, employees and widows. Employers and employees both pay into this system.
  • The Curative Care Organization (CCO) covers only six of Egypt’s 27 governorates: Cairo, Kalyubia, Alexandria, Damietta, Port Said and Kafr el-Sheikh. Employers and employees can contract on their own with the CCO, and premiums differ based on the level of coverage that is selected.

Employers are not obligated to provide health insurance to their employees, but many do.

As your employer of record in Egypt, we may be able to provide optional supplementary medical insurance coverage for professionals and their dependents at a more cost-effective rate.

Pension
Employees can retire with a full pension at age 60 if they have contributed to the social security system for 120 months, or at any age with 240 months’ worth of contributions. 

Expatriate employees are not required to make contributions, with the exception of those whose home countries have treaties with Egypt for reciprocal social insurance treatment. Employers are still required to make monthly contributions to the Ministry of Social Solidarity on behalf of expatriate employees.

Workers’ compensation
Egyptian employees who suffer a workplace injury or illness that prevents them from being able to work are entitled to full pay from the Social Solidarity Ministry. A special committee designated by the Ministry determines whether employees may be reassigned to a new job when they return to work.

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.

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 employees in Egypt—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 Global Employment Outsourcing (GEO) to expand and hire in over 179 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—in more than 150 countries 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.

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.

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