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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.

Verified 2026-06 · source NOSI · Egyptian Tax Authority (ETA) · Ministry of Labour · next review 2026-09
Employer overhead
~+15.4%
social insurance 18.75% (capped at EGP 14,500)
Low cost · costly to fire
~2 months per year
arbitrary dismissal compensation ~2 months’ pay per year
Min wage
Private EGP 7,000/mo
STEP 1

What it costs

what one hire really costs
Edit 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 + 2–3 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 + 2–3 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: tenure ≤10 years 2 months / >10 years 3 months.
  • 2.Without a valid reason (arbitrary dismissal): pay ~2 months’ wage/year of service in compensation.
  • 3.Settle social insurance + due entitlements; disputes go to the labor court.
Severance

Arbitrary/without-cause dismissal compensation: ~2 months’ wage × each year of service (at the labor court’s discretion); plus notice (2–3 months). For-cause dismissal pays only due entitlements.

Example: Wage EGP 15,000, 4 years, arbitrary dismissal: ~2 months/year × 4 = 8 months ≈ EGP 120,000 (court discretion) + 2 months’ notice.

Country-specific pitfalls
  • Arbitrary-dismissal compensation is high (~2 months/year) — 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. 12/2003

Supporting detail

STEP 3

How to start

first steps
STEP 4

What bites you

what others got wrong
Country-specific pitfalls
  • Arbitrary-dismissal compensation is high (~2 months/year) — 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 for your actual wage.

How are employer social contributions paid in Egypt?

Social employer 18.75%/employee 11% (cap 14,500)

How much is severance for dismissal in Egypt?

Needs a statutory valid reason; arbitrary/without-cause dismissal compensation ~2 months’ wage/year of service (court discretion), plus 2–3 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 cap wage EGP 14,500), employee 11%; income tax progressive 0–27.5%.

Deeply researched and verified against official bodies, auto-updated; rates and processes are for reference — for major decisions rely on each country’s authorities and local counsel.