HR Software for Egypt
Leave Policy
Maternity Leave
Pregnant employees who have worked continuously for 10 months are entitled to 90 days of paid leave. The employee receives 100% of the salary during this period, up to a maximum of EGP 10,900 per month, and Social Security is responsible for this salary.
Paternity Leave
There is currently no statutory paternity leave.
Parental Leave
Parental leave is not regulated by law in Egypt. However, some employees may be entitled to maternity leave.
Sick Leave
Employees are entitled to up to one year of paid sick leave. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay | Payer |
|---|---|---|
| 0 – 90 days | 75% of base salary | Social Security |
| 90 – 180 days | 80% of base salary | Social Security |
| 180 – 360 days | 0% of base salary | N/A |
Pay & Tax
Minimum Wage Requirements
The minimum wage for private sector employees is EGP 3,500 per month.
Individual Income Tax
| Gross Annual Income (EGP) | Tax Rate (%) |
|---|---|
| From 0 to 40,000 | 0% |
| 40,001 to 55,000 | 10% |
| 55,001 to 70,000 | 15% |
| 70,001 to 200,000 | 20% |
| 200,001 to 400,000 | 22.5% |
| 400,001 to 1,200,000 | 25% |
| More than 1,200,000 | 27.5% |
Payroll Cost
The cost to the employer is generally estimated at 19.75% of the employee’s salary.
- Social Security – 18.75%.
- Unemployment – 1.0%
Caps apply to some employer costs, so the percentage varies.
One time fee
- Mandatory Wet Ink Employment Agreement Processing Fee – $80 USD
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Sunday to Thursday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Terminations in Egypt can be complex. In Egypt, employers cannot terminate at will outside of the probationary period and the termination must be for a valid reason.
Proper terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Probationary period
2. Objective reasons
3. Disciplinary dismissal
4. Performance due to unsuitability for the position - When the contract expires
Notice Period
The minimum notice period is 60 days and increases depending on the length of employment.
- 60 days if the length of service is less than 10 years
- 90 days if you have been with the company for more than 10 years
Severance for Employees
In Egypt there are no legal requirements for severance payments unless the dismissal was unjustified. During the notice period, the employee receives his or her normal salary.
To protect you from unforeseen financial risks arising from dismissals, IceHrm includes a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 21 days of paid time off (PTO) per year. PTO accrues monthly at 1.75 days per month. Employees are entitled to annual leave after one year of service. During the first year of employment, an employee cannot take more than the accumulated amount.
Public Holidays
Egypt celebrates 12 national holidays over 15 days
- Orthodox Christmas Day
- January 25 Revolution Day
- National Police Day
- Sinai Liberation Day
- Labour Day
- Sham Ennessim
- Eid al-Fitr
- June 30 Revolution
- June 30 Uprising in Egypt
- Eid al-Adha (3 day)
- Revolution Day
- Islamic New Year
- Armed Forces Day
- Prophet’s Birthday
Onboarding
Onboarding
Onboarding takes 10 working days after the customer signs the SOW.
Additional Info
Employment Contract Details
The contracts must be written in Arabic and can be bilingual. They must be in writing and signed in wet ink by both parties.
A contract must contain:
- Surname
- Start date
- Length of employment
- Job Description
- Termination conditions
The employment contract and any changes thereto (as well as termination) must be signed in wet ink.
Probation Period
The probationary period is mandatory. The minimum probationary period is 30 days and the maximum probationary period is 90 days (3 months).
The employer can terminate the employee at any time during the probationary period and without giving reasons without giving the employee any severance pay.