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The Ultimate Guide To
Employment in Egypt

Egypt Facts

Population size: 97,553,151
Currency: Egyptian Pound (EGP)
Capital city: Cairo
Languages spoken: Modern Standard Arabic
Ease of Doing Business: 109 (Starting a Business Rank)

GEO Solutions or DIY Employment in Egypt?

Companies entering Egypt must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities.  A GEO or Egyptian Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have an Egyptian entity established that can run payroll.

A DIY approach will typically be delayed until there is a properly incorporated company ready to run payroll and may be a costly option.  Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally, Shield GEO is responsible for all compliance issues related to the employment.

 

Outsourcing Employment Through a GEO Employer of Record Service

Using Shield GEO Employer of Record Services in Egypt

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Egypt. For companies which intend to employ their staff directly through their incorporated Egyptian entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Egypt.

As a Global Employer Organization (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition, Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Egypt.

The Shield GEO solution is an attractive alternative where:

– the company is looking to employ staff quickly

– the company doesn’t have an appropriately incorporated entity in Egypt

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Egypt

– the company needs help with tax, employment, immigration and payroll compliance in Egypt

Shield GEO can contract directly with the company to employ and payroll their staff in Egypt. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.

Payroll

Payroll Egypt
Management Fee for Employer of Record Services / Monthly Payroll Costs

Please contact us for a quote.

Currency ? Egyptian Pound (EGP)
Payment Frequency ?

Monthly

Income Tax Deductions ?

Income tax is deducted at source.

 
Grossed income Tax Rate (%)
0 - 8,000 EGP 0%
8,001 - 30,000 EGP 10%, with a 85% tax credit
30,001 - 45,000 EGP 15%, with a 45% tax credit
45,001 - 200,000 EGP 20%, with a 7.5% tax credit
> 200,001 EGP 22.5%

The tax credit is applied on the taxpayer’s highest income bracket. For example, if the taxpayer’s income falls within the 8,001 – 30,000 EGP bracket, an 85% discount is applied to the tax payable. Tax payable is calculated at the rate corresponding to each bracket.

Corporate Tax Requirements

The corporate income tax rate in Egypt is 22.5%.

 

Companies are required to file tax returns within 4 months from the end of the financial year. A company’s financial year corresponds to the accounting year.

Employers Social Security and statutory contributions

The employer pays 26% of the employee’s monthly base salary up to EGP1,240 and 24% of monthly amounts exceeding this amount or on other payments (such as allowances), up to EGP2,430.

Employees Social Security and statutory contributions

The employee pays 14% of their monthly base salary up to EGP1,240 and 11% on monthly amounts exceeding this amount or on other payments (such as allowances), up to EGP2,430.

Employer Social Security Limits ?

EGP322.40 for contributions paid on the basis of the employee’s base salary and EGP583.20 for contributions paid on other amounts.

Employee Social Security Limits ?

EGP173.60 for contributions paid on the basis of the their monthly base salary and EGP267.30 for contributions paid on other amounts.

Is employee social security deducted ?

Yes, employee social security contributions are deducted at source.

Special Requirements for Expense Reimbursements to Employee ?

Original receipts are required for expense reimbursements.

Are employees required to have private pension/retirement ?

Employees are not required to have a private pension plan.

Public Medical Insurance ?

Public medical insurance is arranged for the employee.

Private Medical Insurance ?

Private medical insurance can be arranged for the employee at an additional cost.

Other Employee Insurance Required ?

Other employee insurance is not required.

Private Medical Insurance Taxed ?

Private medical insurance is not taxed.

Will contributions by employer/employee to private pension incur tax? ?

Private pension contributions are not taxed. If the employee is making contributions, an amount is deducted from taxable income.

General Employer of Record Service Terms

General Employer of Record Service Terms
Minimum assignment length ?

There is no minimum assignment length. However if the employee is assigned for less than 3 months, they cannot be socially insured.

Payment Currency ?

Egyptian Pound (EGP), US Dollar (USD), Euro (EUR)

Onboarding Documents and Information Required ?
  • Scanned copy of National ID
  • Social Security number
  • Bank details and SWIFT Code
  • Original academic certificate
  • Photographs
  • Police check
  • Original military certificate (for men only)
  • Labor certificate

Work Permits

Shield GEO can sponsor work permits for foreign employees in Egypt.

Work Permits
Work Permit processing time

3 months

Work Permit process

The following is a summary of the process.

 

Step 1: The relevant documents are collected from the employee.

 

Step 2: Shield GEO arranges for the required documents to be delivered to the Ministry of Manpower. It takes 10 days to receive a security approval code which the employee can use to enter Cairo.

 

Alternatively, the security approval code can be provided to the Egyptian consulate in the employee’s home country. This will allow the employee to enter Egypt directly.

 

Step 3: Upon arrival in Egypt, the employee undergoes a blood test at the Ministry of Health.

 

Step 4: Shield GEO arranges for the relevant documents to be submitted to the visa department in Mogamaa’. Once a receipt has been obtained from the visa department, the employee is legally entitled to start working.

 

Step 5: Shield GEO applies for residency on behalf of the employee and submits the relevant documents to the visa department in Mogamaa’.

 

Step 6: The employee’s passport is stamped by the visa department in Mogamaa’, which entitles the employee to 6 months of residency.

 

Step 7: After a period of 1-2 months (depending on the employee’s nationality), present the employee’s original passport and receipt, to obtain another stamp which entitles the employee to a full year of residency.

Submission of original passport ?

The employee’s original passport will be required for a few stages in the work permit application process.

Work Permit Submission Confirmation Documents ?

Documents confirming submission of the work permit application are delivered to Shield GEO.

Are work permit processes different for different nationalities ?

WP processes may differ slightly for different nationalities if the employer company is seeking to sponsor their employees’ work permits in Egypt.

Is application processed in host or home country ?

The application is processed in Egypt (the host country).

Can employee be in host country when application lodged ?

For at least the first 2 weeks, the employee is required to be out of the host country. After that, they may enter Egypt.

Can employee travel in and out of host country when application lodged ?

Yes, however they may be required to retake a medical test until residency has been stamped in their passport.

Work Permit – When Can Employee Start Work ?

The employee can start working once a receipt has been obtained from the visa department.

Work Permit Dependent Process ?

The following documents are required to issue a residency visa for the spouse and/or children of the employee:

 

  • Original passport
  • Marriage certificate (not required if the spouse’s surname is the same as the employee’s)
  • 2 photographs (for each family member)

 

The dependents’ residency visas are renewed every time the employee’s work permit is renewed.

When Can Employee Travel to Host Country ?

The employee can enter Egypt approximately 2 weeks after their work permit application has been lodged.

Business Visas

Business Visas
Can do Business Visa

Shield GEO does not organise business visas in Egypt.

  • Egypt Employer of Record Overview

Egypt Employer of Record Overview

  • Egypt Employer of Record Overview

Egypt

Egypt

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