EOR Service in Egypt

Hire, Onboard and Pay Employees in Egypt Quickly and Efficiently

Hiring in Egypt at a glance

CURRENCY
Egyptian Pound (EGP)
working hours
48 hours per week
public/bank holidays
13 public holidays
capital
Cairo
language
Arabic
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan- Dec
minimum hourly salary
No minimum wage
CURRENCY
Egyptian Pound (EGP)
working hours
48 hours per week
public/bank holidays
13 public holidays
capital
Cairo
language
Arabic
date format
DD/MM/YYYY
tax year
Jan- Dec
payroll frequency
Monthly
GDP
$1.347 trillion (2022 estimate)

Employer of Record in Egypt

For foreign employers, Egypt Employers of Record (EORs) play a crucial role in recruiting skilled personnel in Egypt. These specialized employment and recruitment specialists possess the knowledge and expertise to navigate the hiring process efficiently. EORs also provide guidance on employment agreements and ensure compliance with local labor regulations, mitigating legal risks for businesses. Collaborating with an Egypt-based EOR enables companies to leverage the latter’s expertise in the domestic market, benefiting from streamlined HR procedures and acquiring the right talent.



Why use Egypt EOR?

Partnering with an Egypt Employer of Record (EOR) or Professional Employer Organization (PEO) helps employers hire from Egypt without a local entity. The experts from your EOR partner will also ensure you are compliant with local employment laws.


This is because Egypt’s employment laws have certain unique features that are different to your home country. For example, Severance pay is a must, if employees are terminated without a just cause. Moreover,  Egypt recognizes Islamic holidays, and these play a role in the working calendar. For example, during the month of Ramadan, working hours are reduced. Another point of concern would be trade unions. Historically, trade unions in Egypt were state-controlled. However, recent reforms and events have pushed for more independent labor movements. There are still regulations around forming or joining unions, and the process can be bureaucratic.


An Egypt EOR/PEO’s extensive understanding of the local market, including labor practices and cultural nuances, ensure HR processes are streamlined, and payroll, tax compliance, and benefits administration, are taken care of.


EOR Costs in Egypt

The cost of Egypt EOR/PEO services  differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Egypt EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers 

With a demographic dividend characterized by a high proportion of young individuals, Egypt benefits from a productive labor market. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Egypt.

Factors Global Ranking Interpretation
Rule of law 85 Indicates effectiveness of law enforcement
Labour-employer cooperation 23 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 51 Indicates average QS rankings
Labour productivity per employee 50 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 30 Indicates findability of skilled talent
Workforce with tertiary education 60 Indicates % of workforce with PG degrees
Digital Skills 14 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Egypt.

Why work in Egypt ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Egypt

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Egypt must have a local legal organization and utilize local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Egypt makes compliance with employment laws demanding.

With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights.

Utilizing a PEO/EOR in Egypt  helps mitigate the risks associated with misclassification by ensuring compliance with labor laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Egypt

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Employer contribution

Employer Payroll Contributions

Contribution Rate Description
Social Security 18.75% Minimum taxable wages: 1,700 EGP
Maximum taxable wages: 10,900 EGP
Emergency Relief (ER) Fund 1.00% Social insurance contribution rate: 1.00%
Basic social insurance salary: 2,210 EGP
Employer Payroll Contributions 19.75% -

Employee contribution

Employee Payroll Contributions

Contribution Rate Descripntion
Social Security 11.00% Minimum taxable wages is 1,700 EGP and maximum is 10,900 EGP

INCOME TAX

Contribution Rate
Up to 15,000 EGP 0.00%
15,001 EGP – 30,000 EGP 2.50%
30,001 EGP – 45,000 EGP 10.00%
45,001 EGP – 60,000 EGP 15.00%
60,001 EGP – 200,000 EGP 20.00%
200,001 EGP – 400,000 EGP 22.50%
Over 400,000 EGP 25.00%

Separation

Termination Process

In Egypt, an employee can only be terminated on expiration of their contract  or for reasons such as dishonesty, negligence, fraud, or work-related offenses. Unfair termination entitles the employee to compensation proportional to their length of service.

Notice Period

Notice periods in Egypt depend on the duration of an employee's tenure with the employer. It ranges from two months for employees with less than 10 years of service to three months for longer tenures.

Severance Pay

Severance payments are not mandatory under Egyptian labor law, except in cases of unfair termination. 

If an employer terminates an indefinite contract without just cause, the employee is entitled to two months' pay for each year worked. 

In the case of unfair termination of definite term contracts before their expiration, the employee is entitled to receive the remaining pay as stipulated in the contract.

Probation periods

Probation periods can last up to three months.

Start Hiring in Egypt today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in Egypt ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Egypt .

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