Egypt has a population of over 100 million people, with strong agriculture, energy and tourism sectors. Companies must register with 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 Р40% and may be subject to  withholding tax on dividends as well.

Payroll and Tax Considerations:

  • Employment contracts must be in writing and be written in Arabic with 3 copies provided including nature of the work, wages, and probation period
  • Minimum wage is EGP 2,000 per month
  • Employees are paid an overtime rate of 135% of the standard hourly wage, 170% for night overtime, and 200% for holiday overtime
  • Employees receive severance benefits if the employer terminates the contract for economic reasons
  • Income tax is applied on annual net income above EGP 15,000, with tax rates ranging from 10-25%

HR and Statutory Requirements

  • Employees begin accruing annual leave on the first day of employment. Annual leave is 21 days with full pay after 1 year of service. Employees over 50 years of age with more than 10 years of service receive 30 days of annual leave
  • Sick leave is paid by the Public Authority for Health Insurance at 75% of daily wages for the first 90 days of illness. Employees must show proof of their illness from medical authorities
  • Females with at least 10 months of service receive 90 days of maternity leave with full compensation. Female employees can only receive maternity leave twice during their employment with an employer
  • No paternity leave is provided
  • Employees quality for old-age pension once they reach age 60 with at least 120 months of contributions. Employees contribute 9% and employers contribute 12% into the pension fund

Holidays in Egypt

  • January 7 – Coptic Christmas Day
  • January 25 – Revolution Day January 25
  • April 24 – Coptic Easter Sunday
  • April 25 – Spring Festival / Sinai Liberation Day
  • May 1 – Labor Day
  • May 3 – Eid el Fitr
  • May 4 – Eid el Fitr Holiday
  • May 5 – Eid el Fitr Holiday
  • June 30 – June 30 Revolution
  • July 9 – Arafat Day
  • July 10 – Eid al-Adha
  • July 11 – Eid al-Adha Day 2
  • July 12 – Eid al-Adha Day 3
  • July 13 – Eid al-Adha Day 4
  • July 23 – Revolution Day July 23
  • July 30 – Muharram
  • October 6 – Armed Forces Day
  • October 8 – Prophet Mohamed’s Birthday

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