Employment contract
Under the 2025 Labour Law and Arabic-document requirements, record term, role, pay, hours, leave, notice and social insurance; reality controls.
Egypt · Hiring guide
Egypt Hiring guide
A populous MENA nation, low labor cost, ample English/Arabic-bilingual talent; social security employer 18.75%, no high income-tax threshold. But arbitrary-dismissal compensation is high (~2 months/year) and the currency is devaluing, so foreigners often USD-anchor.
Cross-checked (multiple sources) 2026-08 · source NOSI · Egyptian Tax Authority (ETA) · Ministry of Labour
Employer overhead
~+15.4%
social insurance 18.75% (capped at EGP 16,700 from 2026)
Low cost · costly to fire
~2 months per year
arbitrary dismissal compensation ~2 months’ pay per year
STEP 1
What it costs
what one hire really costsEdit to recompute
Gross monthlyE£15,000
Employer statutory+E£2,306
Employer total/moE£17,306
Take-homeE£11,834
Annualized costE£207,672
Worth knowing
Egypt offers low labor cost and bilingual (English/Arabic) talent, but firing isn’t cheap — arbitrary dismissal compensation is ~2 months’ pay per year of service, with lawful grounds + 3 months’ notice, settled by the labor court. With currency depreciation, foreign firms often anchor pay to USD.
STEP 2
How hard
can you get in and out?Hiring: low cost, bilingual
- large MENA population
- plenty of English/Arabic talent
- social 18.75% employer (capped)
Firing: high compensation
- lawful grounds + 3 months notice
- arbitrary dismissal ~2 months’ pay per year
- disputes settled by the labor court
Lawful grounds (one required)
- Dismissal needs a statutory valid reason (gross misconduct, etc.); otherwise it’s arbitrary/without-cause.
- Early termination of a fixed-term contract owes the remaining term or an agreed amount.
- Unfair dismissal can go to the labor court.
Dismissal process
- 1.Advance notice: a uniform 3 months (the 2025 Law ended the tenure tiering).
- 2.Without a valid reason (unlawful dismissal): pay at least 2 months’ wage per year of service in compensation.
- 3.Settle social insurance + due entitlements; disputes go to the labor court.
Severance
Unlawful dismissal compensation: at least 2 months’ wage × each year of service (Article 165 sets a floor; the labor court may award more); plus a uniform 3 months’ notice. For-cause dismissal pays only due entitlements.
Example: Wage EGP 15,000, 4 years, unlawful dismissal: at least 2 months/year × 4 = 8 months ≈ EGP 120,000 (the court may award more) + 3 months’ notice.
Country-specific pitfalls
- Unlawful-dismissal compensation is high (a statutory floor of 2 months/year; the court may award more) — no valid reason is costly.
- Social-insurance base has a floor and ceiling; the currency is devaluing, so foreigners often USD-anchor.
- Dismissal disputes are decided by the labor court — keep procedure and evidence complete.
Source: Labour Law No. 14/2025 (in force 2025-09-01)
Basis: قانون رقم 14 لسنة 2025 بإصدار قانون العمل（埃及新劳动法，2025-09-01 生效） · verified 2026-09-20
Supporting detail
Basis: قانون رقم 14 لسنة 2025 بإصدار قانون العمل（埃及新劳动法，2025-09-01 生效） · verified 2026-09-20
Working hoursBasis: قانون رقم 14 لسنة 2025 بإصدار قانون العمل（埃及新劳动法，2025-09-01 生效） · verified 2026-09-20Annual leaveBasis: قانون رقم 14 لسنة 2025 بإصدار قانون العمل（埃及新劳动法，2025-09-01 生效） · verified 2026-09-20
STEP 3
How to start
first stepsComplete employer compliance checklist
18/18 decision blocks · verified 2026-08-28 · review by undefined
Probation
Probation cannot exceed the statutory cap or repeat with the same employer; pay and safety duties remain.
Hours, rest & overtime
The ordinary baseline is generally 8 hours/day and 48/week, with rest, night, overtime and sector exceptions separate.
Minimum wage by region
The current private-sector minimum is EGP 7,000/month; sector, part-time and later National Wages Council updates differ.
Salary & talent supply
Use CAPMAS, Labour Ministry and real city/role samples adjusted for inflation, language, allowances and scarcity.
Payroll, payslip & payment
Reconcile payroll to PIT, social insurance, bank payment, contracts and attendance each period.
PIT withholding & social insurance
Employer and employee social insurance uses current insurable-wage floors/ceilings and branches, not one high-salary percentage.
Employer-cost calculator scope
Budget pay, social insurance, PIT, overtime, leave, bonus, medical, foreign permission and exit separately; no fixed total rate.
Annual leave
Annual leave increases with service and protected categories; first/partial year, hazardous work and unused leave differ.
Public holidays & overtime
Official holidays and authorised-work compensation follow law/notices and roster, not a media calendar.
Family & medical leave
Maternity, childcare, sickness and eligibility follow the 2025 Labour Law and social-insurance rules separately.
Statutory & market benefits
Minimum pay, social insurance, leave and safety are statutory; meals/transport, medical, bonus and profit share follow applicable law/contract.
Termination & disputes
Termination, expiry, misconduct and economic redundancy follow separate new-law procedure, notice, compensation and labour-court routes.
Contractor classification
Employee status follows subordination, control, continuity, tools and economic risk; consultant/outsourcing labels do not override reality.
Foreign workers
Complete matching entry/residence and Ministry of Labour work permit before work and observe foreign-worker ratios/role restrictions.
Recruiting channels
Use Labour Ministry, schools, professional channels and measured funnels; Arabic records, data, medical and non-discrimination rules differ.
Retirement age
Retirement and pension eligibility follow social-insurance law, contract and the new Labour Law; do not configure an unverified automatic dismissal age.
Employment compliance calendar
Assign evidence/escalation to hire, monthly payroll/tax/social, annual updates, holidays, permit renewal and exit.
STEP 4
What bites you
what others got wrongCountry-specific pitfalls
- Unlawful-dismissal compensation is high (a statutory floor of 2 months/year; the court may award more) — no valid reason is costly.
- Social-insurance base has a floor and ceiling; the currency is devaluing, so foreigners often USD-anchor.
- Dismissal disputes are decided by the labor court — keep procedure and evidence complete.
FAQ
What’s the all-in employer cost of one hire in Egypt?
For a local employee on E£15,000/month, employer monthly cost is about E£17,306 (overhead +15.4%), ~E£207,672 annualized. Use the calculator as a budgeting estimate and verify payroll filings with the relevant authority.
How are employer social contributions paid in Egypt?
Social insurance employer 18.75% / employee 11% (contribution base floor EGP 2,700 and ceiling EGP 16,700 from 1 Jan 2026)
How much is severance for dismissal in Egypt?
Needs a statutory valid reason; unlawful dismissal compensation at least 2 months’ wage/year of service (Article 165 floor; court may award more), plus a uniform 3 months’ notice. For-cause pays only due entitlements.
How much do employers pay for social security in Egypt?
Social insurance employer 18.75% (contribution base floor EGP 2,700 and ceiling EGP 16,700 from 1 Jan 2026), employee 11%; income tax progressive 0–27.5%.
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Deeply researched and maintained against official sources as of the verification date shown; rates and processes are for reference — for major decisions rely on each country’s authorities and local counsel.