Hire compliantly in Egypt. Compare EOR providers, understand mandatory profit sharing and navigate payroll in the largest labor market in the Middle East and North Africa.
Capital
Cairo
Language
Arabic
Average Salary
EGP 12,000/m
Payroll Cycle
Monthly
Employer Cost
22%
Paid Leave
21 days
Public Holidays
10-12 days
Tax Rates
0-27.5%
Detailed guides on the employment topics that matter most when hiring in Egypt. Independently researched, updated for 2026.
Egypt's minimum wage is EGP 7,000 per month for private sector workers, with a new increase to EGP 8,000 announced for public sector employees from July 2026. This guide covers the full minimum wage framework under Egypt's new Labour Law No. 14 of 2025, including employer social insurance contributions (18.75%), mandatory annual raises, overtime rates, income tax brackets, the profit-sharing obligation, and what it means for companies hiring through an EOR. SEO Focus Keyword: minimum wage in Egypt
Read ArticleASO vs PEO: What’s the difference? While both outsource HR and payroll functions, a PEO operates as a co-employer sharing liability, whereas an ASO provides administrative services only. This guide explains key differences in cost, risk, benefits access, and flexibility.
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We independently rank EOR providers based on their actual performance in Egypt. The Best EOR in Egypt guide evaluates providers across pricing transparency, local entity ownership, onboarding speed, in-country support and contract compliance.
Egypt’s labor law was overhauled in 2025 with the new Labor Law No. 14. An EOR that is still operating under the old framework will get training fund contributions, contract terms and termination procedures wrong.
When you hire in Egypt, the mandatory 10% profit sharing, annual social insurance cap increases and a new Labor Law that took effect in 2025 create employer obligations that go well beyond the headline 22% contribution rate. The profit sharing alone has no cap and can significantly impact total cost for profitable companies.
| Key Employment Facts | |
| Minimum Wage | EGP 7,000/month (private sector) |
| Probation Period | 3 months maximum |
| Standard Working Hours | 48 hours/week (8 hours/day, 6 days) |
| Paid Annual Leave | 21 days (30 days after 10 years or age 50) |
| Notice Period | 2-3 months (by tenure) |
| 13th Salary | Not statutory |
| Sick Leave | 6 months (75% first 90 days, 85% next 90) |
| Maternity Leave | 90 days at full pay (up to 3 times in career) |
Good to Know: Egypt’s mandatory profit sharing of 10% of net profits is the single biggest variable cost when hiring. It applies to every employer regardless of size and is capped at one year’s total salary per employee. Employees must receive their share within 30 days of the company’s financial year end. Social insurance salary caps increase by 15% every January until 2027, meaning payroll costs rise automatically. For 2026, the insurable salary range is EGP 2,700 (minimum) to EGP 16,700 (maximum). Annual leave increases with tenure: 21 days standard, rising to 30 days after 10 years of service or when the employee reaches age 50. Employees under 18 get 30 days. A mandatory annual raise of at least 3% of insurable salary (minimum EGP 250/month) applies to all employees, set by the National Wages Council.
When you hire in Egypt, the flat employer social insurance rate of ~22% on insurable salary is straightforward, but the mandatory 10% profit sharing has no salary cap and creates an unpredictable cost layer that most EOR providers exclude from their initial quotes.
| Employer Contributions | |
| Contribution | Employer Rate |
| Social Insurance (pension, disability, death) | 18.75% |
| Health Insurance | 3.25% |
| Martyrs and Victims Fund | 0.5% of net profit |
| Training Fund (30+ employees) | 0.25% of min insurable salary per employee |
| Profit Sharing | 10% of net profits (mandatory) |
| Total Employer Cost (excl. profit sharing) | ~22% of insurable salary |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Income Tax | 0-27.5% (progressive, 8 brackets) |
| Social Insurance (employee share) | 11% |
| Health Insurance (employee share) | 1% |
| Personal Exemption | EGP 15,000/year deduction |
Total employer cost in Egypt runs at approximately 1.22x of insurable salary before profit sharing. The insurable salary is capped at EGP 16,700/month in 2026, meaning social insurance costs flatten for higher earners. However, the mandatory 10% profit sharing has no cap and can add significantly to total costs for profitable companies. Budget for it separately.
Egypt has approximately 10-12 public holidays per year. Islamic holidays follow the Hijri calendar and shift by approximately 10-11 days each year. Dates below are approximate.
|
Date |
Holiday |
|
January 7 |
Coptic Christmas |
|
January 25 |
Revolution Day |
|
March 20-22 |
Eid al-Fitr (approximate, 3 days) |
|
April 12 |
Coptic Easter Sunday |
|
April 13 |
Sham El-Nessim |
|
April 25 |
Sinai Liberation Day |
|
May 1 |
Labour Day |
|
May 26 |
Arafat Day |
|
May 27-30 |
Eid al-Adha (approximate, 3-4 days) |
|
June 17 |
Islamic New Year (approximate) |
|
June 30 |
June 30 Revolution Day |
|
July 23 |
July 23 Revolution Day |
|
August 27 |
Prophet’s Birthday (approximate) |
|
October 6 |
Armed Forces Day |
Islamic holidays (Eid al-Fitr, Eid al-Adha, Islamic New Year, Prophet’s Birthday) are determined by moon sighting and may shift by 1-2 days. The government announces exact dates shortly before each holiday. Eid al-Fitr is typically 3 days and Eid al-Adha is typically 4 days. Employees required to work on public holidays are entitled to double pay.
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