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Minimum wage in Egypt
Payroll in Egypt
Statutory benefits in Egypt
Other employee benefits in Egypt
Compliant, seamless payroll and benefits in Egypt and beyond
Payroll and benefits in Egypt
Employers wanting to hire in a particular country should first have a thorough understanding of the payroll systems, rules, and regulations that apply there. It’s also a good idea to understand the customs surrounding payroll and benefits so you can give your employees the experience they expect.
For example, the payroll cycle in Egypt is usually either monthly or bi-monthly, and employers are expected to withhold both taxes and social security contributions from their employees’ wages. When it comes to employee benefits, some are completely optional for employers, while others are required by law. In this section, we’ll cover everything you need to know about payroll in Egypt, including the minimum wage, payroll deductions, and mandatory and optional benefits.
Minimum wage in Egypt
The minimum wage in Egypt is set by the National Council for Wages (NCW), according to the circumstances and conditions of the country. It is updated regularly to reflect the rate of inflation. The minimum wage is provided as a monthly figure for full-time workers. Full-time work in Egypt is either 40 or 42 hours per week.
Minimum wage in Egypt in 2025
As of 1 March 2025, the minimum wage in Egypt is EGP 7,000 per month. This recent increase is the sixth in three years, with the previous jump in April 2024 taking the minimum wage from EGP 3,500 to EGP 6,000 per month. This means the minimum wage has doubled in less than a year.
Minimum wage per Egypt per hour
For the first time, the NCW also established a minimum hourly wage for part-time workers in 2025. As of 1 March, this rate is EGP 28 per hour. This is less than the effective hourly wage for a full-time worker working either 40 or 42 hours per week.
Minimum wage in Egypt in USD
The minimum wage in Egypt in 2025 is equivalent to approximately:
- USD 138 per month.
- EUR 127 per month.
Payroll in Egypt
The most frequent payroll cycle in Egypt is monthly, with employees receiving their pay no later than the 5th of the following month. However, it is possible to offer a bi-monthly payment schedule instead. The fiscal year in Egypt runs from 1 July through to 30 June, and the local currency is the Egyptian Pound (EGP). Read on to learn more about payroll in Egypt.
Payroll taxes in Egypt
Deducting income tax from employees’ wages is an important part of running payroll in Egypt. Egyptian tax residents are taxed on their worldwide income, while non-residents only pay tax on income earned within the country.
Taxes are charged at the following rates:
- Less than EGP 40,000: 0%.
- EGP 40,000–55,000: 10%.
- EGP 55,000–70,000: 15%.
- EGP 70,000–200,000: 20%.
- EGP 200,000–400,000: 22.5%.
- EGP 400,000–1,200,000: 25%.
- More than EGP 1,200,000: 27.5%.
Both residents and non-residents benefit from an annual salary tax exemption of EGP 20,000.
Social security contributions in Egypt
In addition to paying payroll taxes in Egypt, both employers and employees must pay social security contributions. Employers must deduct the employee’s portion from their team’s wages and remit it to the relevant authorities.
The employer contribution is 18.75% of the total social insurance salary, and the employee contribution is 11%. As of 2025, contributions apply to salaries of between EGP 2,300 and 14,500. They pay for things like sick pay, maternity, and pensions. Employers with over 30 employees must also pay into the Emergency Relief Fund (ER Fund), which provides financial assistance to employees whose employers have ceased operations or stopped paying staff.
13th salary in Egypt
Unlike in some other countries, there is no legal requirement for a 13th salary payment in Egypt. Employers can choose to offer bonuses to their employees as an additional incentive.
Statutory benefits in Egypt
In Egypt, employees are entitled to various benefits by law. We’ll discuss some of the most crucial ones below.
Minimum wage and overtime in Egypt
All full-time employees in Egypt are entitled to at least the minimum wage of EGP 7,000 per month. As of 2025, there is also a minimum hourly wage for part-time workers. Employees who work overtime in Egypt are entitled to overtime pay at the rate of 135% of their normal wages (or 170% for work carried out at night).
Health insurance in Egypt
Employers in Egypt are obliged to provide health insurance coverage for their employees and their immediate families. They can choose to provide this either through the state-run system or through a private provider. The employer pays 75% of the premium, with the employee paying the remaining 25%.
Social insurance in Egypt
In addition to health insurance, Egyptian employers must contribute to the social insurance system on behalf of their employees (employees also pay a proportion of their income in social security contributions). The social security system in Egypt covers old-age, disability, and survivor’s pensions, as well as sickness, maternity, and work injury benefits.
Profit sharing in Egypt
Employers in Egypt must distribute at least 10% of their annual net profits to their employees, up to a cap of one year’s salary for each employee.
Annual leave in Egypt
Employees in Egypt who have worked for their employer for at least six months are entitled to a minimum of 21 days of annual leave per year. This is increased to 30 days for employees who have worked at a company for more than 10 years or who are 50 years old or older. Employees also have the right to other types of leave, including sick leave, study leave, and casual leave.
Other employee benefits in Egypt
Employers can choose to offer additional employee benefits in Egypt, even though they are not required by Egyptian labour laws. This can help you to attract and retain talent in Egypt by improving your employer value proposition (EVP). Read on for some possible benefits you could provide to your Egyptian team.
Bonuses in Egypt
Bonuses are fairly common in Egypt, although they are not required by law. Employers can choose to pay bonuses to employees on an individual basis or based on group achievements. This can be a powerful way of motivating employees and encouraging them to meet their goals.
Additional paid time off in Egypt
While Egyptian labour law guarantees employees at least a certain amount of paid time off work, employers can choose to offer additional leave as an added employee benefit in Egypt. For example, you could offer employees more annual leave than the 21 days mandated by law or implement a more generous maternity leave policy.
Remote and flexible working in Egypt
Employees everywhere want one thing: work-life balance. Offering employees benefits that allow them to better manage their work and personal lives can be a valuable addition to your EVP. For example, you could allow your Egyptian team to work fully or partially from home or to set their own working hours.
Health and wellness benefits in Egypt
Some employers in Egypt also choose to provide their employees with benefits related to health and wellness. This is a win-win because healthier employees tend to also be happier and more engaged and productive. Health and wellness benefits might include things like gym memberships, allowances for healthy food, or reimbursements for exercise classes.
Compliant, seamless payroll and benefits in Egypt and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in Egypt, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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