Expand your business into Egypt, with or without a local entity
Egypt has a rich history and culture, and possesses one of the strongest economies in Africa. For these reasons and more, many foreign businesses look to expand their operations into the country.
However, Egypt’s unique employment laws and bureaucracy can present difficulties for businesses trying to expand. The language barrier is a hurdle for some, but you will also need to deal with complex business and employment legislation, drawn-out administrative procedures, and more.
At Horizons, we specialize in helping organizations expand internationally, including into Egypt. Our professional employer organization (PEO), employer of record, and payroll outsourcing services provide everything necessary to expand your business into Egypt, whether or not you have registered an entity there already.
With a dedicated in-house recruitment team, we can also help you to find, hire, and onboard new employees in Egypt. If you don’t have an established entity in Egypt, you can even use our local subsidiary as employer of record, giving you all the benefits of hiring in Egypt without any of the complex administration.
Our outsourcing services could cut your expansion costs by thousands of dollars and give you greater flexibility for your Egypt expansion.
How can our Egypt PEO simplify your expansion?
Horizons enables you to rapidly expand into Egypt, even if you don’t have an Egyptian subsidiary.
Rapid Market Entry
Horizons will enable you to source, hire, and onboard professionals across Egypt in as little as 48 hours.
Cost-Effective Expansion
Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish an Egyptian entity.
Payroll Services
Simplified Egypt salary & payroll processing, including social security payments, tax, and any other required contributions.
Employee Onboarding
Utilize the relevant provision for all types of Egyptian labor contracts, whether a fixed-term or open-ended contract.
Onsite Legal & HR Team
We ensure that employment contracts are fully compliant and adhere to Egyptian labor laws and best practices.
Ensure Full Compliance
We ensure that employment contracts are fully compliant and adhere to Egyptian labor laws and best practices.
Hiring in Egypt: Employment law overview
📝 Egypt employment contracts
It is legally required for all employers in Egypt to provide a written employment contract for every employee. These contracts need to be written in the country’s official language of Arabic, use the currency of the Egyptian pound, and include any relevant details such as working hours, compensation, benefits, and so on.
⏰ Working hours in Egypt
A normal working week in Egypt is 40 hours, with Friday and Saturday as rest days.
📅 Public holidays in Egypt
Date | Description | 1 Jan |
Egypt Public Holiday |
|---|---|
7 Jan | Coptic Christmas |
25 Jan |
Revolution Day January 25 |
12 Mar | Public Holiday |
19 Apr |
Coptic Easter Sunday |
20 Apr | Sham El Nessim |
25 Apr | Sinai Liberation Day |
1 May-2 May |
Labour Day |
24 May-28 May | End of Ramadan |
30 jun | Revolution Day June 30 |
23 Jul | Revolution Day July 23 |
31 Jul-3 Aug | Eid Al Adha |
20 Aug | El Hijra |
8 Oct | Armed Forces |
29 Oct |
Al-Mouled Al-Nabawy |
🏖 Vacation in Egypt
Employees in Egypt who have worked for their employer for at least six months can generally take 21 days of paid vacation leave per year. If they have 10 years with an employer, or are over the age of 50, then they are entitled to one month (30 days) of leave. After five years of service, employees are also entitled to a one-off month of religious leave for pilgrimages.
😷 Sick leave in Egypt
Employees in Egypt are entitled to six months of paid sick leave, compensated at a rate of at least 75% of their normal salary or wage.
👶 Maternity and paternity leave in Egypt
Female employees in Egypt are entitled to three months (90 days) of paid maternity leave. Generally, this can only be used twice in a five-year period.
💰 Employee severance and terminations in Egypt
When terminating employees in Egypt, the case must be taken to the Ministry of Manpower and Migration, which has 15 days to make a decision. The decision can also be contested by the employee.
Employees are also entitled to a notice period prior to termination, which varies depending on their length of service. For those with under ten years of experience, there is a mandatory 60-day notice period. For those with more than ten years of service, the minimum is 90 days.
Probation periods in Egypt are limited to three months.
🏦 Taxation in Egypt
In Egypt, both employees and employers must contribute to social security, and the contributions vary depending on salary. For employers, the contribution is either 24% or 26% of salary, and for employees, it is either 11% or 14%.
Income tax in Egypt is progressive, and the rates are between 0% and 25%, depending on income level.
Corporate tax in Egypt is 22.5%.
🏥 Health insurance in Egypt
Egyptians receive free medical care, so employees do not need to provide private insurance.
💳 Egypt compensations & benefits
Compensation laws in Egypt
The minimum wage in Egypt is 2,000 Egyptian pounds per month for full-time workers.
Benefit management in Egypt
Setting up your Egyptian benefits system can be a confusing process if you are not familiar with the complex labor laws, language, and cultural differences, so it is common to encounter delays.
Horizons can help you avoid this complex part of your Egyptian expansion, saving you time and money and simplifying the entire process. Our team will offer advice and outsourcing of your benefit system setup and management, freeing you to focus on the rest of your expansion.
Request a Proposal
How can Horizons help you expand into Egypt?
Horizons’ Egypt PEO, employer of record, and payroll services can provide your organization with everything you need to start trading in Egypt. We can help you commence operations in Egypt in as little as 48 hours, and could save you over 80% in expansion costs, even if you don’t have a registered entity in the country.
We can handle all of your expenses, payroll, benefits, and legal compliance in Egypt, as well as all related human resources administration. As the only global PEO with an in-house recruitment team, we can also find and hire your local staff, providing our Egyptian subsidiary to act as employer of record for your hires so you don’t even need to establish an Egyptian entity.
Get in touch with our Egypt experts today to find out more about our outsourcing services for your Egypt expansion.
