Setting up and managing payroll in Egypt
Egypt’s economy is one of the strongest in Africa, and the country attracts a large amount of foreign investment.
If you are planning an expansion into Egypt, it is important to understand that the process of hiring and setting up payroll can be difficult for foreign organizations. Language barriers, complex regulations, and unexpected delays often stall progress and cut into revenues.
A popular way to bypass the complexity of Egyptian employment is to outsource your payroll setup and management. At Horizons, we will work with you to build and run a compliant, fully functional Egyptian payroll to help you kickstart your expansion, whether or not you already have a registered entity in the country.
If you have an entity in Egypt
For businesses that have already registered an official entity in Egypt, we offer a comprehensive and tailored payroll outsourcing service. Our expert team will set up and manage your payroll, also handling all of your associated administration, HR, and compliance with local laws.
This level of outsourcing is ideally suited to larger organizations and those expanding into Egypt in the long-term.
If you don’t have an entity in Egypt
If you have not registered a legal entity in Egypt, then our comprehensive outsourcing services can cover your payroll setup and management, making use of our established Egyptian subsidiary to act as employer of record.
This option is ideal for any organization aiming for a rapid, low-risk, and scalable route into Egyptian hiring and expansion.
Simpler, more reliable expansion in Egypt, with Horizons
Reliable Delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
An Established Presence
Our in-country subsidiary will act as employer of record, offering you a presence in Egypt for legal local employment.
Flexible Solutions
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Egypt.
Up-To-Date Compliance
With the ever-changing Egyptian employment laws, we’ll ensure you stay fully compliant at all times.
A Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire in-country employment process.
Proven Global Expertise
Our in-house teams of payroll and HR experts have already helped dozens of organizations expand globally.
Egypt payroll guide
What are the tax and withholding rules 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%.
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Social Security (capped at 1,670 EGP)
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26.00%
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Social Security variable (capped at 4,040 EGP)
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24.00%
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Unemployment
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1.00%
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Total Employment Cost
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27% |
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Social Security contribution on the fixed salary
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14.00%
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Social security contribution on variables
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11.00%
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Total Employee Cost
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14.00% |
Terminations and severance 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.
How to establish payroll in Egypt
To establish and run payroll yourself, your organization will need to follow a complex set of laws and procedures that are unique to Egypt, as well as operate and negotiate in the Egyptian language. You will usually have to register a legal entity, sign up with the relevant authorities, open bank accounts, and hire a workforce.
Alternatively, Horizons’ outsourcing can streamline your entire hiring and payroll process, facilitating your Egyptian expansion and ensuring you are fully prepared to grow your business successfully. Our employer or record service means that you can even benefit from our solutions if you have not registered a legal entity in Egypt, utilizing our Egyptian subsidiary to act as employer of record for your employees.
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Your all-in-one solution for Egypt payroll outsourcing and Egypt expansion
Horizons’ Egypt payroll, PEO, and employer of record services enable your business to start trading in Egypt compliantly and more efficiently. We provide everything necessary to begin your Egyptian operations in as little as 48 hours, even if you don’t have a registered entity in the country, and could save your business as much as 82% in expansion costs.
Our Egypt experts can also manage your organization’s payroll, expenses, and benefits in Egypt, along with HR duties and employment and tax compliance. As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, recruitment, and onboarding of your Egyptian workforce.
