Employer of Record (EOR) Services in Egypt

Ready to expand your business into Egypt? Flexi Personnel allows for seamless expansion of businesses across Egypt. Our Employer of Record services streamline hiring and payroll processing, ensuring compliance with local regulations. Focus on expanding your team while we handle the rest.

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An Overview of Egypt

Egypt, officially known us Arab Republic of Egypt is located in the North eastern corner of Africa and the Sinai Peninsular in the Southwest corner of Asia.
Cairo, is the capital city while their official language being Arabic. It has approximately 107 million inhabitants making it the 14th most populated country in the world.

As of 2023 their GDP was recorded at $396 million.

What Egypt Has to Offer for Investors

Skilled Workforce: A large, young, and educated population
Economic Growth: Robust GDP growth and a diversifying economy
Government Support: Investment-friendly policies and incentives
Cost Efficiency: Competitive labour costs and a growing market

The Benefits of Flexi Personnel Employer of Record Services in Egypt

Comprehensive Local Expertise

We possess in-depth knowledge of Egyptian labour laws and regulations. Our expertise ensures your compliance with local employment requirements, minimizing labour law risks and ensuring smooth operations.
Guaranteed Compliance
Swift Market Entry
Cost-Effective Approach
Flexible Workforce Solutions

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Employment contracts in Egypt

A contract should include:

An employment agreement should clearly outline the employer’s particulars, including name, address, and workplace, as well as the employee’s details such as name, qualifications, job role, social insurance number, and residential address.

Additionally, it must specify the nature of the work, agreed salary, payment method, frequency of payments, and any supplementary benefits.

Typically, it may include a probationary period, usually lasting no longer than three months.
Employment contracts in Egypt vary and can be categorised as follows:

Fixed-Term Contracts: These agreements have a defined duration agreed upon by both parties and may be extended upon mutual consent. If the contract extends beyond five years, the employee has the right to terminate it by providing three months’ notice before the intended end date.

Open-Ended Contracts: These agreements do not specify an end date and can only be terminated under specific conditions. Termination requires written notice from either party, and the employer must provide valid grounds, such as employee inefficiency or other justifiable reasons.

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Employment Law and Dynamics in Kenya

Leaves and Benefits in Egypt

Maternity Leave:

Employees who have worked for at least 10 months are entitled to:

90 days of paid maternity leave.
A mandatory 45-day post-childbirth break.
Up to two years of unpaid maternity leave.

Each employee can only receive maternity leave twice from the same employer.

Paternity leave

There is no paternity leave under Egyptian law.

Annual leave:

After completing one year of continuous service, employees receive: 21 days of paid leave annually.
After 10 years of service or upon reaching age 50:Paid leave increases to 30 days annually.
Employers determine vacation dates but must allow at least 6 consecutive days.

Holidays:

Employees receive full pay for public holidays . The holidays include:

Islamic New Year
Birthday of Prophet Mohammed
Eid al Fitr (2 days)
Eid al Adha (3 days)
Eastern Christmas
Revolution Day
Sham El Nessim
Sinai Liberation Day
Labor Day
Revolution Day (another)
Armed Forces Day

Employees may work on a public holiday if there’s a business need.

Sick Leave:

Employees diagnosed by a doctor are entitled to:
Sick leave paid at 75% of their social insurance wage for up to 90 days.
After 90 days, the rate increases to 85%.
The maximum duration for sick leave is 180 days.
Sick leave can be converted into annual leave, and annual leave can be used for sick leave.

Termination

When it comes to ending employment, there are some rules employers need to follow:

If an employee has been with the company for less than 10 years, the employer has to give the employee at least two months’ notice before letting him/her go.

But if the employee has been there for a decade or more without a break, the employer should give the employee three months’ notice.

If the employer lets the employee go without a good reason, it’s called wrongful termination. Depending on how long an employee has been working, the employer might owe you some extra pay.

If the employee decides to leave on their own, they usually have to give the employer a heads-up too, about two or three months.

During your first few months on the job, that is the probationary period, the employer can let an employee go without warning.

Probation:

During the probationary period, which lasts a maximum of three months, an employee can’t be put on probation more than once by the same employer.

Compensation in Egypt

The minimum wage for the private sector is 3,500 Egyptian pounds per month as set by the National Wages Council .

Overtime compensation: Employees earn 35% of their regular wage for hours worked beyond eight during the day, and 70% for nighttime overtime.

Weekend work entitles employees to double their regular pay and an extra day off. Those working during vacation must receive double pay as well.

Payroll Taxes and Statutory Deduction in Kenya

In Kenya, employees’ salaries and wages are subjected to statutory deductions.

As per Section 19(1) of the Employment Act of Kenya, the employer can deduct an agreed-upon amount from an employee’s wage to support a fund or program approved by the commissioner for labor, provided the employee consents to such deduction.

The essential statutory deductions include:

PAYE (Pay As You Earn)
NHIF (National Hospital Insurance Fund)
NSSF (National Social Security Fund)
NITA (National Industrial Training Authority)

PAYE

The PAYE must be deducted by the employer and remitted to the Kenya Revenue Authority, typically on or before the 9th day of the following month. It is only applicable to people earning Ksh. 24,000 and above per month.

NHIF

Employers deduct from the employee’s income and remit to NHIF. This contribution is usually graduated with a minimum of Kes 500 and a maximum of Kes 1,700 per employee earning Kes 100,000 every month.

NSSF

The fund’s objective is to provide social security for its members and their dependents against contingencies provided in the act.

Tier I – It is set at 12 % of the lower limit of Kes 6,000, which translates to Kes 720 with an equal contribution of Kes 360 by both employer and employee.
Tier II – A cumulative 12% of 18,000 (upper limit) which is Kes 2,160 is set.12 % of the lower limit which is Kes 720 will be taken as Tier I and the balance of Kes 540 will be Tier II.

The employer usually deducts these contributions from the employee’s income as per the act and must be filed and remitted before or on the 15th of the following month.