Employer of Record in Egypt

An Employer of Record (EOR) in Egypt acts as the legal employer so foreign companies can hire Egyptian workers without setting up a local entity.

Labour Law No. 14 of 2025, effective 1 September 2025, replaced the entire prior framework. It requires Arabic contracts in four copies, revised NSSF contribution rates, and specialised labour court approval for dismissals.

• EOR onboarding completes in under 48 hours; GAFI entity registration takes 4 to 8 weeks.
• Combined NSSF employer and employee contributions reach approximately 40% of insurable salary under the new rates.
• Labour Law No. 14 of 2025 sets a flat 3-month notice period for employees with ten or more years of service.
• A 10% foreign worker headcount cap applies to all private employers operating in Egypt.

This guide covers Egyptian employment law, payroll, statutory leave, visa requirements, misclassification risk, and the regulatory changes introduced in 2025.

Gloroots is a Global Employer of Record (EOR) provider. This guide presents the full picture so readers can assess whether entity-free employment or another path fits their hiring goals in Egypt.

What Is an Employer of Record in Egypt?

An EOR is the entity of record with the Egyptian Tax Authority and the National Social Security Fund (NSSF). It issues Arabic-language contracts, withholds income tax, and remits all statutory contributions on behalf of the worker. To understand how does EOR work in practice, the model separates legal employment from day-to-day management.

US and European companies use this model to hire Egyptian tech, BPO, or remote talent without forming a local subsidiary.

In practice, the client selects the candidate. The EOR then generates an Arabic contract in four copies, registers the employee with the NSSF, withholds income tax, runs monthly EGP payroll, and the client directs day-to-day work throughout the engagement.

Your Hiring Options in Egypt: EOR vs. Entity vs. PEO vs. Contractor

Four paths exist for employing workers in Egypt: an EOR, a GAFI-registered local entity, a PEO or staffing arrangement, and direct independent contractor engagement. Each carries different compliance ownership and cost structure. Gloroots EOR services cover the entity-free path end to end.

An EOR suits companies hiring 1 to 24 employees quickly or testing the Egyptian market. A GAFI entity suits 25 or more permanent employees with a long-term commitment.

Contractor engagement carries the lowest upfront cost but creates misclassification risk under Egyptian law, which provides no statutory classification test.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	Under 48 hours	EOR provider	Monthly fee per employee	1 to 24 hires or market test
GAFI Entity	4 to 8 weeks	In-house or local accountant	Capital plus ongoing filing costs	25 or more permanent employees
PEO/Staffing	1 to 2 weeks	Shared	Markup on salary	Short-term project staff
Contractor	Immediate	Client	Commercial contract	Specialist task-based work

How to Hire in Egypt Through an EOR: Step by Step

Hiring through an EOR in Egypt follows six steps, from role definition to employee start date. The full process completes in under 48 hours from contract signature when documentation is ready.

Step 1: Define the Role and Compensation

Confirm job title, salary in EGP, working hours, and whether the role is indefinite or fixed-term. Verify the minimum wage of EGP 7,000 per month and the 3% annual increment obligation under Labour Law No. 14 of 2025.

Step 2: Submit Employee Information to the EOR

Provide the employee's national ID, passport copy, prior-employment certificates, role details, salary, and start date. The EOR verifies all data against Personal Data Protection Law No. 151 of 2020 requirements before processing.

Step 3: Generate and Sign the Arabic-Language Contract

The EOR drafts a compliant Arabic contract in four copies. The employee signs electronically, and copies go to the employer, employee, NSSF, and Labour Office.

Step 4: Register with NSSF and Configure Payroll

The EOR enrolls the employee with NOSI, configures the employer contribution (approximately 26%) and employee contribution (approximately 14%), applied against the insurable salary band of EGP 2,700 to 16,700 per month as of January 2026.

Step 5: Run Monthly Payroll and Withhold Income Tax

The EOR runs monthly EGP payroll, applies progressive income tax brackets from 0% to 27.5%, remits withholding to the Egyptian Tax Authority, and files the annual employee data submission required under Labour Law No. 14 of 2025.

Step 6: Manage Offboarding and Exit

On termination, the EOR issues the three-month notice required under the new law, processes final salary and unused PTO, obtains Labour Office authentication for any resignation, and retains records for five years post-termination.

How to Choose the Right EOR in Egypt

Not every EOR provider is equipped to handle Egypt's specific legal requirements. Six criteria separate capable Egypt EOR providers from generic platforms.

Egypt's labour framework changed materially in September 2025 with Labour Law No. 14. Providers that have not updated their contracts, payroll logic, and dismissal workflows to reflect that change introduce compliance risk from day one.

Beyond legal currency, evaluate each provider on payroll accuracy in EGP, NOSI enrollment speed, Arabic contract generation, and the ability to authenticate documents with the Labour Office. Pricing structure matters too. Providers that charge a percentage of salary create unpredictable costs as compensation grows.

For a broader comparison of providers across these dimensions, see the best employer of record guide. Gloroots uses predictable, country-specific pricing and runs employment through human-led operations with a dedicated account owner for each client.

Local Legal Knowledge of Labour Law No. 14 of 2025

Confirm the provider has updated contracts, payroll, and dismissal workflows to reflect the September 2025 law change before signing any agreement.

Own Entity vs. Partner Network

Providers with a locally registered Egyptian entity reduce permanent establishment risk and give clearer compliance accountability than subcontractor chains.

Arabic Contract Generation

Verify the provider generates Arabic-language contracts natively. English-only contracts have no legal standing before Egyptian labour courts.

Support Model and Response Time

Egypt's Labour Office and NOSI require in-person filings. Confirm the provider has in-country support staff, not only a remote helpdesk.

Pricing Transparency

A flat monthly fee per employee is preferable to percentage-of-salary models. Confirm the fee covers NSSF filing, Labour Office submissions, and annual data reporting.

Security and Data Compliance

Confirm the provider's data handling meets Egypt's Personal Data Protection Law No. 151 of 2020, whose executive regulations took effect in November 2025.

Workforce and Talent Pool in Egypt

Egypt has a labour force of approximately 34.8 million. With a population exceeding 100 million, it is the most populous Arab country and Africa's third-largest economy.

Cairo and Alexandria are the primary hiring hubs, with growing IT services, fintech, BPO, and remote-work sectors driving demand for skilled workers.

The workforce skews young and is increasingly English-proficient in urban and technology sectors. Salaries are competitive relative to US and European markets. Egypt's UTC+2/+3 time zone suits transatlantic teams that need overlap with European mornings and US afternoons. Companies hiring across the MENA region also consider pairing Egyptian hires with roles covered under an employer of record UAE arrangement for broader regional coverage.

Metric	Detail
Workforce size	~34.8 million
Median age	~25 years
English proficiency	Moderate to high in urban and tech sectors
Top talent hubs	Cairo, Alexandria, Giza
Key industries	IT services, fintech, BPO, manufacturing, tourism

Employment Law Essentials in Egypt

Egypt's primary employment framework is Labour Law No. 14 of 2025, which replaced the previous Labour Law No. 12 of 2003. The new law updates contract requirements, leave entitlements, and employer obligations across the private sector.

Contracts must now be issued in four copies: one for the employer, one for the employee, one for the social security authority, and one for the relevant government body. All contracts must be in Arabic or bilingual Arabic-English, with the Arabic text operative.

Labour Law No. 14 of 2025 introduces two new mandatory employer obligations:

• Annual salary increment: Employers must increase each employee's salary by at least 3% of the social insured salary each year.
• Training fund contribution: Employers must contribute 0.25% of the minimum social insured salary per employee, subject to a floor of EGP 10 and a ceiling of EGP 30 per employee per month.

Standard working hours remain 8 hours per day and 48 hours per week. Overtime rates are 135% for daytime work and 170% for nighttime work. During Ramadan, Muslim employees work a reduced schedule of 6 hours per day.

Probation periods run up to three months. Notice periods are two months for employees with fewer than ten years of service and three months for those with ten or more years.

Gloroots tracks regulatory changes under Labour Law No. 14 of 2025 and applies updated rules to every employment contract and payroll run in Egypt.

Employment Contracts

Under Labour Law No. 14 of 2025, employment contracts must be written in Arabic, or in bilingual Arabic-English format with the Arabic text operative, issued in four copies, and for non-Arabic-speaking foreign employees may be prepared in both languages. Gloroots issues locally compliant contracts for every hire in Egypt.

Working Hours and Overtime

The legal cap is 8 hours per day and 48 hours per week. During Ramadan, Muslim employees work a reduced schedule of 6 hours per day. Overtime is paid at 135% for daytime hours and 170% for nighttime hours.

Minimum Wage

The minimum wage in Egypt is EGP 7,000 per month for the public sector in 2025. Private sector minimums may differ by sector agreement.

Separately, Labour Law No. 14 of 2025 requires employers to apply a mandatory annual salary increment of at least 3% of each employee's social insured salary. This increment is a statutory obligation and is independent of the minimum wage floor.

Leave and Statutory Benefits in Egypt

Labour Law No. 14 of 2025 updated annual leave entitlements, extended maternity leave to 4 months (120 days), and introduced paternity leave for the first time in Egyptian law.

Mandatory benefits in Egypt include end-of-service benefits, work injury compensation, and coverage under the Universal Health Insurance scheme, which is being phased in across governorates.

Leave entitlements at a glance

Leave type	Entitlement
Annual leave (year 1)	15 working days
Annual leave (year 2 onward)	21 working days
Annual leave (10+ years or age 50+)	30 working days
Annual leave (disabled employees)	45 working days from start
Casual leave	7 days per year (deducted from annual balance)
Hajj leave	One month paid, once, after 5 years continuous service
Maternity leave	4 months (120 days)
Paternity leave	1 day (on the day of the child's birth), fully paid and not deducted from annual leave balance, under Labour Law No. 14 of 2025. Effective from 1 September 2025.
Sick leave	Up to 180 days per year

Gloroots manages statutory leave tracking and benefit filings for every employee in Egypt, keeping records aligned with the current law.

Annual Leave

Under Labour Law No. 14 of 2025, employees receive 15 working days in their first year, rising to 21 days from the second year onward, and 30 days after 10 years of service or from age 50.

Disabled employees are entitled to 45 working days from the start of employment. Casual leave is set at 7 days per year and is deducted from the annual leave balance. Employees who have completed 5 years of continuous service are entitled to one month of paid Hajj leave, granted once during their employment.

Sick Leave

Employees may take up to 180 days of sick leave per year. A medical certificate is required. Termination during sick leave is prohibited.

Maternity and Paternity Leave

Under Labour Law No. 14 of 2025, maternity leave is 4 months (120 days), fully paid, available up to 3 times during employment. The Social Insurance Authority reimburses 75% of the insured wage where the employee has at least 10 months of contributions; the employer covers the balance. Termination during maternity leave is prohibited unless the employer proves a legitimate reason.

Paternity leave was introduced by Labour Law No. 14 of 2025. Male employees may take leave on the day of a child's birth, up to 3 times during employment. This leave does not count against the annual leave balance.

Public Holidays

Egypt observes approximately 13 to 15 public holidays per year, including Islamic holidays with dates that shift annually by the lunar calendar, plus national holidays such as Revolution Day and National Day.

Leave Entitlements Table

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual Leave	15 days (year 1); 21 days (year 2+); 30 days (after 10 years or age 50+)	Full pay	Minimum 6 months continuous service
Sick Leave	180 days per year	75% for first 3 months; 85% thereafter	Medical certificate required
Maternity Leave	4 months (120 days)	75% from NSSF; employer covers balance	Available up to 3 times during employment; termination during leave prohibited
Paternity Leave	1 day	Paid	Available up to 3 times during employment; does not count against annual leave
Casual Leave	7 days per year	Full pay	Deducted from annual leave balance
Hajj Leave	1 month	Full pay	Once only; requires at least 5 years of service
Public Holidays	Approximately 13 to 15 per year	Full pay	Islamic holiday dates vary by lunar calendar

Payroll, Tax and Statutory Contributions in Egypt

Payroll runs monthly in EGP. Employers must withhold income tax and remit NSSF contributions to NOSI by statutory deadlines.

NSSF contribution rates were restructured under Social Insurance Law No. 148 of 2019. The employer contribution is now approximately 26% and the employee contribution approximately 14%, totalling around 40% of insurable salary. Annual insurable salary caps are adjusted by NOSI, with a minimum of EGP 2,700 and a maximum of EGP 16,700 effective January 2026. A training fund contribution of 0.25% of the minimum social insured salary applies per employee, subject to a floor of EGP 10 and a ceiling of EGP 30. Under Labour Law No. 14 of 2025, employers must also submit annual employee data to the relevant authority.

Employer contributions

Contribution Type	Rate	Notes
Social Insurance	~26%	Applied to insurable salary; annual caps adjusted by NOSI (EGP 2,700 min to EGP 16,700 max, effective January 2026)
Training Fund	0.25% of minimum social insured salary	Minimum EGP 10, maximum EGP 30 per employee

Employee contributions

Contribution Type	Rate	Notes
Social Insurance	~14%	Subject to annually adjusted insurable salary caps

Income tax

Annual Net Income (EGP)	Tax Rate
Up to 40,000	0%
40,001 to 55,000	10%
55,001 to 70,000	15%
70,001 to 200,000	20%
200,001 to 400,000	22.5%
400,001 to 1,200,000	25%
Over 1,200,000	27.5%

Bracket application notes: For total net income between 600,000 and 700,000 EGP, the 0% bracket does not apply; taxation starts at 10%. For income between 700,000 and 800,000 EGP, the 10% bracket does not apply; taxation starts at 15%. For income between 800,000 and 900,000 EGP, brackets up to 15% do not apply; taxation starts at 20%. For income between 900,000 and 1,200,000 EGP, brackets up to 20% do not apply; taxation starts at 22.5%. For income above 1,200,000 EGP, all income is taxed from the 25% bracket upward, with amounts over 1,200,000 EGP taxed at 27.5%.

Work Visas and Permits in Egypt

Foreign employees in Egypt require a work permit issued under Ministerial Decree No. 279 of 2025. Four visa categories apply depending on purpose and duration.

An EOR with a locally registered entity can sponsor work permits and manage the permit process. The 10% foreign worker headcount cap and the 20% wage cap apply to the EOR's Egyptian payroll. Roles closed to foreign nationals, including tour guides and customs clearance agents, cannot be filled through any route.

Visa types

Visa Type	Purpose	Validity
Work Visa	Standard employment	Standard term
Temporary/Tourist Visa	Short-term or task-based work	30 days; 14-day work limit
Ordinary Visa	Longer-term residence	3 to 5 years
Special Visa	Long-term residence	10 years
Exempt Categories	Diplomats and international organisation staff	Varies

Equity and ESOP Consulting in Egypt

Equity compensation is uncommon across Egypt's broader labour market but is gaining traction in Cairo's fintech and tech startup sector.

Stock options and RSUs granted to Egyptian employees are subject to income tax at vesting or exercise. Foreign-listed equity requires Central Bank of Egypt approval for currency conversion, adding administrative complexity. Most EOR providers do not manage this approval process directly, so companies should confirm scope with their provider before granting equity to Egyptian employees.

Misclassification Risk in Egypt

Egypt has no statutory misclassification test. Authorities assess the substance of the working relationship to determine whether a person is an employee or an independent contractor.

Factors that point to employment status include:

• Control over how, when, and where work is performed indicates an employment relationship rather than independent contracting.
• Exclusive or near-exclusive engagement with one client suggests the worker functions as an employee.
• Integration into the client's operations and use of client equipment indicates employment.
• Absence of commercial risk or multiple clients supports employee classification.

Penalties for misclassification can include:

• Back-payment of all NSSF contributions, both employer and employee share, for the full engagement period.
• Income tax arrears plus interest and administrative fines assessed by the Egyptian Tax Authority.
• Labour Law protections including paid leave, severance, and minimum wage become retroactively applicable.
• A corporate tax assessment if misclassification triggers a permanent establishment finding.

An EOR employs the worker directly under a compliant Egyptian contract from day one, eliminating misclassification risk entirely.

Hiring, Onboarding, Termination and Offboarding in Egypt

Hiring in Egypt requires a written Arabic employment contract, NSSF registration before the first payroll run, and confirmation of work permit status for any foreign national subject to the 10% headcount cap.

The sections below cover each phase of the employment lifecycle: onboarding steps before and after day one, termination rules updated under Labour Law No. 14 of 2025, and the offboarding actions required to close out the engagement correctly.

Getting each phase right matters. Errors in registration, contract form, or termination procedure can trigger back contributions, fines, or court proceedings under Egyptian labour law.

Onboarding

Before day one

• Collect national ID, passport copy, prior-employment certificates, and a signed Arabic employment contract in four copies.
• Register the employee with NOSI before the first payroll run to establish the NSSF contribution record.
• Confirm work permit status if the employee is a foreign national subject to the 10% headcount cap.
• Obtain explicit data consent per Personal Data Protection Law No. 151 of 2020 before processing personal information.

Day one

• Issue the employee their copy of the Arabic contract and file the Labour Office copy as required.
• Confirm NSSF enrollment number and income tax file number are active before the employee starts work.
• Brief the employee on working hours, overtime rules, and leave entitlements under Labour Law No. 14 of 2025.

First week

• Confirm payroll configuration including the insurable salary band (EGP 2,700 to 16,700) and the correct income tax bracket.
• Set up the nursing break schedule if applicable under post-maternity leave entitlements.
• Confirm profit-sharing accrual tracking if the company qualifies under applicable rules.

Beyond

• Submit the annual employee data report to the Labour Office as required under Labour Law No. 14 of 2025.
• Track the 3% annual salary increment obligation and apply it at each anniversary.
• Monitor NOSI annual cap adjustments each January and update payroll configuration accordingly.

Termination

Labour Law No. 14 of 2025 sets a flat three-month notice period for indefinite contracts, regardless of tenure. Disciplinary dismissals for grave fault now require approval from specialised labour courts, which became operational on 1 October 2025, replacing the previous Ministry of Manpower committee route.

Wrongful dismissal entitles the employee to one month's salary per year of service. Courts may alternatively order reinstatement or award two months' salary per year of service as compensation. Termination during maternity leave is prohibited unless the employer proves a legitimate reason.

Pre-signed Form No. 6 resignations are abolished under the new law. Resignations must be in writing, authenticated by the Labour Office, and the employee may retract within approximately 10 days of submission.

Offboarding

Settlement

• Process final salary, unused annual leave payout, and any severance owed within the statutory period.
• Confirm profit-sharing distribution if the company qualifies and the relevant financial year has closed.
• Deregister the employee from NSSF payroll to stop contribution obligations from the departure date.

Documents

• Issue a service certificate and employment record to the departing employee as required by law.
• Retain the personnel file for five years post-termination per Labour Law No. 14 of 2025.
• Provide an NSSF contribution history statement to the employee before their final day.

Exit

• If the employee is a foreign national, notify relevant authorities and cancel the work permit promptly.
• Confirm no outstanding Labour Office filings are linked to the departing employee before closing the record.
• Update the annual employee data submission to reflect the departure and revised headcount.

What's New: Recent Regulatory Changes in Egypt

Labour Law No. 14 of 2025 replaced Labour Law No. 12 of 2003 on 1 September 2025, representing the most significant overhaul of Egyptian employment law in over two decades.

• Maternity leave extended to 4 months (120 days), available up to 3 times during employment, with no minimum service prerequisite.
• Paternity leave introduced for the first time, available up to 3 times during employment.
• A flat 3-month notice period replaces the previous tiered 2-month/3-month structure for indefinite contracts.
• Disciplinary dismissals for grave fault now require specialised labour court approval, operational from 1 October 2025.
• An annual salary increment of at least 3% of the social insured salary is now a statutory employer obligation.
• Training fund contribution changed to 0.25% per employee (minimum EGP 10, maximum EGP 30), replacing the prior 1% of net profits basis.
• Personal Data Protection Law No. 151 of 2020 executive regulations took effect November 2025, requiring explicit employee data consent.

Employers should audit contracts, payroll configurations, and dismissal procedures against the new law before Q4 2025. Legal and compliance teams should schedule a follow-up review in January 2026 when NOSI salary caps update.

Costs and Financial Planning for Hiring in Egypt

Total employer cost in Egypt extends well beyond gross salary. Statutory contributions, profit-sharing obligations, and training fund requirements add material overhead to every hire.

Three costs that foreign companies commonly miss: the NSSF employer contribution runs approximately 26% of insurable salary, not the outdated 19.75% figure still cited in older sources; qualifying companies must allocate 5 to 10% of net annual profits to profit-sharing; and the training fund contribution of 0.25% per employee now applies alongside the new 3% annual salary increment obligation under Labour Law No. 14 of 2025.

For a detailed breakdown of how EOR fees layer on top of these statutory costs, see our guide to employer of record cost.

Cost Element	Direct Entity	Gloroots EOR
NSSF Employer Contribution (~26% of insurable salary)	Same	Same
Income Tax Withholding	In-house accountant required	Included
Profit-Sharing Tracking	Manual accrual	Managed
Training Fund (0.25% per employee)	Manual tracking	Managed
Entity Setup	EGP 250,000 minimum capital plus legal fees for JSC	None
Ongoing Compliance Filing	In-house or local accountant	Included
Offboarding/Dissolution	Months plus legal fees	Notice period only

Common Challenges and How Gloroots Solves Them in Egypt

Hiring in Egypt involves compliance layers that catch foreign companies off guard, particularly after the September 2025 law overhaul under Labour Law No. 14 of 2025.

Challenge	How Gloroots Addresses It
Arabic-only contract requirement	Gloroots generates compliant Arabic or bilingual contracts natively.
Updated NSSF rates	Gloroots payroll engine reflects the approximately 26%/14% employer-employee split and annual NOSI cap adjustments.
Profit-sharing accrual	Gloroots tracks qualifying company obligations throughout the year.
Specialised labour court dismissal process	Gloroots manages the court approval workflow for disciplinary terminations under the October 2025 rules.
Work permit headcount cap	Gloroots monitors the 10% foreign worker cap across its Egyptian payroll.
Personal data consent	Gloroots onboarding captures explicit consent per Personal Data Protection Law No. 151 of 2020.
Annual employee data submission	Gloroots files the mandatory annual report to the Labour Office.

Each item in the table reflects a specific obligation under Egyptian law. Gloroots manages these through its locally registered Egyptian entity, not through a subcontractor chain.

Why Gloroots Is a Strong EOR Partner in Egypt

Gloroots is best suited for US and European companies hiring Egyptian tech, BPO, or remote talent who need compliant onboarding under Labour Law No. 14 of 2025 without setting up a GAFI-registered entity.

Country-specific strengths include native Arabic contract generation, updated NSSF payroll configurations reflecting the Social Insurance Law No. 148 of 2019 restructuring, and managed profit-sharing and training fund tracking.

Gloroots operates through a locally registered Egyptian entity, not a subcontractor chain. This structure reduces permanent establishment risk for the client company.

The service is well suited for companies hiring 1 to 24 employees in Egypt who want to test the market before committing to entity setup.

Companies planning to scale beyond 25 permanent employees should evaluate whether a GAFI-registered entity becomes more cost-effective. Gloroots can support that transition assessment when the time comes.

Conclusion

Egypt's Labour Law No. 14 of 2025 changed the compliance baseline for every employer in the country on 1 September 2025.

Foreign companies hiring Egyptian talent should audit their contracts, payroll configurations, and dismissal procedures against the new law. An EOR with a locally registered entity and native Arabic contract capability is the lowest-risk starting point for most hiring scenarios under 25 employees. Companies expanding across emerging markets alongside Egypt may also find value in reviewing the employer of record India page for a comparable market reference.

Frequently Asked Questions About Employer of Record in Egypt

What changed under Egypt's Labour Law No. 14 of 2025?

Labour Law No. 14 of 2025 replaced Law No. 12 of 2003, effective 1 September 2025. Key changes include a flat 3-month notice period, 4-month maternity leave, introduced paternity leave, specialised labour courts for disciplinary dismissals (active 1 October 2025), a 3% annual salary increment, revised training fund contributions, and a 4-copy contract requirement.

Is it legal for a foreign company to hire in Egypt without a local entity?

Yes, but only through an EOR that holds a locally registered Egyptian entity. Using a subcontractor instead creates permanent establishment risk. The foreign company directs day-to-day work, while the EOR holds the employment relationship and manages filings with the Egyptian Tax Authority and the National Social Security Fund (NSSF).

How much does an EOR in Egypt cost?

Statutory employer costs in Egypt run approximately 26% of salary, covering NSSF contributions plus income tax withholding obligations. Qualifying companies also carry profit-sharing and training fund obligations as additional costs. Gloroots applies predictable, country-specific pricing with no percentage-of-salary fees on the service itself.

Can an EOR in Egypt sponsor work permits for foreign employees?

An EOR can sponsor work permits under Ministerial Decree No. 279 of 2025. The 10% foreign worker headcount cap and 20% wage cap apply to the EOR's Egyptian payroll. Roles closed to foreign nationals, such as tour guides and customs clearance agents, cannot be filled through any route. Short-term task-based work is capped at 14 days.

What is Egypt's profit-sharing obligation and does it apply to EOR arrangements?

Qualifying Egyptian companies must distribute 5 to 10% of net annual profits to employees. The applicable percentage depends on company type and sector. Distribution is proportional to each employee's annual salary and must be accrued throughout the year. EOR providers should track this obligation for any client arrangement that meets the qualifying threshold.

How does Egypt's Arabic contract requirement affect foreign companies?

Under Labour Law No. 14 of 2025, employment contracts must be in Arabic or in a bilingual Arabic-English format with Arabic as the operative language. English-only contracts carry no legal standing before Egyptian labour courts. Contracts must be issued in 4 copies. For non-Arabic-speaking foreign employees, a version in the employee's own language is also permitted.

Is severance mandatory in Egypt?

Severance is not automatic for definite or project-based contracts. Under Labour Law No. 14 of 2025, wrongful dismissal on an indefinite contract entitles the employee to one month's salary per year of service. Courts may alternatively order reinstatement or two months' salary per year of service. Specialised labour courts handle disciplinary dismissal approvals from 1 October 2025.

What are the standard working hours in Egypt?

The standard working week in Egypt is 8 hours per day and 48 hours per week. During Ramadan, Muslim employees work a reduced schedule of 6 hours per day. Overtime is paid at 135% for daytime work and 170% for nighttime work. Both employer and employee must agree in advance to work on days off; the employee then receives double pay plus a compensatory day off.