Egypt has a population of over 100 million people, with a strong agriculture, energy and tourism focus. There are many opportunities for companies looking to expand.
Companies must register with the companies department of the General Authority for Investment and Free Zones (GAFI) and the Commercial Registry before beginning operations in Egypt. The corporate tax rates vary by industry between 22 – 40% and may be subject to withholding tax on dividends as well.
Labor and Payroll in Egypt:
- Employment contracts must be in writing
- Collective Bargaining Agreements are most often established at the company level
- Minimum wage is 2,000 EGP per month
- Employers must register new employees with the National Authority of Social Insurance before beginning work
- Income tax and social security contributions are withheld from employee pay and must be submitted monthly
- Foreign work permits are granted by the Ministry of Manpower. Employers must apply for the work permit on behalf of the foreign worker, after proving that a local resident cannot fill the vacancy. After the permit has been granted, the employer must train 2 Egyptian residents in the same occupation
- Sick leave policies include 30 days paid leave over 3 years
In accordance with the labor laws of Egypt, employees are entitled to sick leave with a medical note. An employee with proven record of sickness is entitled to a paid sick leave at the rate of 75% of their salary upon which social insurance payments are calculated; for a period of 90 days, to be increased to 85% for the following 90 days. Sick leaves are payable up to 180 days. The right is reserved for the employee to benefit from his/her accumulated annual leaves as well as convert these into sick leaves if such a balance exists.
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