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hire in Egypt

Egypt EOR

SALARY PAYMENT IN Egyptian Pound (EGP E£)

CONTRACT LANGUAGE Arabic / English

PAYROLL TAX 19.75% – 20.75%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire in Egypt, without an entity

Horizons enables international businesses to hire employees in Egypt quickly, cost-effectively, and in full compliance with local tax and labor laws. The Horizons Egypt Employer of Record (EOR) solution means you can hire your entire Egypt team, without the need for a local entity or subsidiary.

When you engage an Egypt EOR solution, you save your business time, and money, and guarantee compliance.

Our Egypt EOR makes it easy to hire in Egypt

The Horizons EOR solution means international companies can hire in Egypt — without the need for an expensive local subsidiary.

Fast Hiring

Horizons enables your company to hire and onboard your Egypt team in as little as 24 hours.

Legal & HR Team in Egypt

Experts in Egypt labor and tax laws ensure you are fully compliant with all applicable laws.

Payroll

Horizons ensures accurate salary and payroll processing, based on your chosen pay period. The Horizons EOR platform makes income tax withholding and expense management straightforward.

Onboarding

Guarantee that all employees in Egypt are welcomed onboard with a compliant contract and all necessary formalities.

Stay Compliant

Horizons ensures that employment remains compliant and deals with any legal and compliance issues as they arise.

Cost Savings

With a Egypt EOR, you save up to 85 percent of the total cost of hiring in Egypt.

Hire and pay talents
with Horizons in
180+ countries

What is an Egypt EOR?

An Egypt Employer of Record (EOR) is a legally compliant and cost-effective solution for companies that want to hire employees in Egypt without needing to open or register a local entity.

An EOR works by entering into a contractual agreement with an employer and its employees. The EOR then becomes the official employer of record legally responsible for all aspects of employment including payroll, taxes, compliance with local labor laws and regulations, employee benefits programs and more. By using an EOR, employers can ensure that their employees are compensated according to local laws and regulations without having to worry about setting up a separate legal entity in each foreign jurisdiction. 

An attractive destination for global business, Egypt is home to a strategic geographical position, highly skilled workforce, and rapidly growing consumer market. Able to easily access opportunities in various markets in the Middle East, Europe and Africa, companies are utilizing Egypt’s strategic location as a meaningful base of operations.

With a strong technical education system that offers some of the best students in STEM fields such as engineering, mathematics, and technology, businesses have found high-level employees from diverse specializations locally available. As a result, all these factors have made Egypt an increasingly attractive business hub for many international organizations.

Partnering with an Egypt EOR like Horizons ensures compliance with local labor laws and regulations while providing access to talented professionals from around the world. Additionally, it saves time and money by removing the need to set up a legal entity while simplifying HR management processes such as payroll and employee onboarding.

What are the benefits of an Egypt EOR?

Working with an experienced EOR partner delivers a number of advantages for your business operations in Egypt.

  1. Reduced Costs — employing staff through a compliant EOR can be more cost-effective, as you don’t need to set up a legal entity in Egypt, and because you will be partnering with experts in Egyptian labor laws and regulations, you can get your employees onboarded quickly and effectively.
  2. Time Savings — working with an EOR saves businesses time by taking care of all the administrative tasks associated with finding, hiring, and onboarding new employees. This includes recruiting, screening candidates, interviewing them, negotiating salaries and contracts. An EOR can also ensure that all paperwork is completed correctly and on time so you don’t have to worry about any unexpected delays or legal issues. 
  3. Compliance Support —One of the main advantages of working with an EOR is their ability to help manage compliance with local labor laws. Partnering with an EOR means businesses can avoid potential legal complications. This saves both time and money in the long run as these kinds of issues can be costly if not addressed properly from the beginning.
  4. Hire The Best Talent —one of the biggest benefits of using an EOR is that you can access top-tier talent from around the world without having to incur any of the additional costs or hassle associated with setting up a legal entity.
  5. Enhanced HR Processes — simplify HR processes, such as payroll and employee onboarding. This can help you streamline your operations and ensure that everything is up to date with the latest regulations.
  6. Flexibility — An Egypt EOR offers flexibility and scalability to your business operations. They can quickly hire and onboard employees when needed, freeing up valuable time for you to focus on other areas of the business.

An EOR can provide invaluable insight into the local culture and business practices in Egypt, which is essential for any business looking to succeed in this market.

How does an Egypt EOR help businesses hire employees?

Working with an Egypt EOR is a great way for businesses to outsource their recruitment needs while still ensuring they are getting qualified candidates who are perfect fits for their organization. By entrusting this task to experienced professionals, businesses get access to a larger pool of diverse talent while also saving time and money associated with recruitment processes.

Here are some of the ways an Employer of Record can help:

  1. Guiding Companies on Local Labor Laws and Tax Regulations — an experienced Egypt EOR will be knowledgeable about the country’s employment laws and tax regulations. This means that when businesses are looking to hire employees in Egypt for the first time, they will have an expert on hand who can help them understand the rules and stay compliant.
  2. Labor Contract Compliance — An important part of hiring employees in any country is having a legally-compliant labor contract. An experienced Egypt EOR has the expertise to draft labor contracts that meet Egyptian regulations, avoiding any issues down the line.
  3. Administering Employee Benefits — One of the key services offered by a reliable Egypt EOR is designing and implementing employee benefit plans. This includes health insurance plans, retirement plans, or other benefits as required by law or offered as part of the employee package. The EOR then manages these benefits on behalf of employees, taking away some of the burden from employers.
  4. Payroll and Tax Services — An Egypt EOR will handle payroll calculations and issue salaries and wages for all employees. They also take care of tax withholding and make any necessary payments on behalf of the business, ensuring that everything is done accurately according to local regulations.

If you’re considering expanding your business into Egypt or need assistance managing your existing workforce in this area, partnering with Horizons can help you access highly-skilled talent and remain compliant with all applicable regulations. Contact us today to learn more about our Egypt Employer of Record services.

Leave management and national holidays in Egypt

Working with an EOR in Egypt can be hugely beneficial for businesses when it comes to managing their employees’ annual leave and public holidays. Not only does this help them comply with Egyptian labor laws, but it also simplifies the often complex processes associated with these entitlements.

An EOR can provide employers with access to all the paperwork, systems, and infrastructure they need in order to successfully manage leave and public holiday regulations. They can simplify the complexities of labor law compliance by providing access to the paperwork, processes, and systems needed for managing leave and public holidays in Egypt.

Employees in Egypt are legally entitled to paid annual leave of either 21 or 30 days, based on their age and length of service:

Employees aged under 50, with between six months and ten years of service, are entitled to 21 days of paid leave per year.

Those over 50, or with ten or more years of service, are entitled to 30 days of paid leave per year.

The employer has the right to set the dates of an employee’s annual leave; however, if the employee officially rejects this decision in writing, it will be viewed as them voluntarily relinquishing their vacation time. 

All employees must take a minimum of six consecutive days leave per year as part of their allocated annual leave entitlement.

In addition to annual leave, there are 13 public holidays each year (see below). 

If employees are required to work on public holidays, they must be paid double their normal rate.

Egypt has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
7 Jan, 2023 Coptic Christmas Day
25 Jan, 2023 Revolution Day January 25
26 Jan, 2023 Day off for Revolution Day January 25
17 Apr, 2023 Spring Festival
22 Apr, 2023 Eid el Fitr (Tentative Date)
23 Apr, 2023 Eid el Fitr Holiday
24 Apr, 2023 Eid el Fitr Holiday
25 Apr, 2023 Sinai Liberation Day
1 May, 2023 Labor Day
28 Jun, 2023 Arafat Day (Tentative Date)
29 Jun, 2023 Eid al-Adha (Tentative Date)
30 Jun, 2023 June 30 Revolution, Eid al-Adha Holiday (Tentative Date)
1 Jul, 2023 Eid al-Adha Holiday (Tentative Date)
20 Jul, 2023 Muharram (Tentative Date)
223 Jul, 2023 Revolution Day July 23
27 Jul, 2023 Day off for Revolution Day July 23
28 Sep, 2023 Prophet Mohamed’s Birthday (Tentative Date)
6 Oct, 2023 Armed Forces Day

Parental, paternity and maternity leave in Egypt

An EOR provides employers with an easy and convenient way to comply with Egyptian labor laws in regarding maternity and parental leave. Employers can fulfill their legal obligations without needing to establish a presence or business entity in Egypt, since the EOR will take over these obligations on its behalf. 

In Egypt, female employees who have worked for their employer consecutively for 10 months or more are entitled to 90 days of fully paid maternity leave, 45 days of which must be taken after the birth.

For employers with more than 50 employees, additional unpaid maternity leave may be taken up to a maximum of two years. Employees can take two periods of maternity leave during their employment. 

Upon their return to work following the birth, female employees may take up to two 30-minute or one-hour nursing breaks per day, for up to two years after childbirth. 

No legal requirement exists for paternity leave in Egypt.

Employer pension contributions in Egypt

Working with an Employer Of Record (EOR) can help businesses with managing pension contributions in Egypt. An EOR is a company that provides services to employers, including the management of compliance with local labor law regulations such as the requirements for pension contributions on behalf of their employees. This allows employers to outsource the administrative burden of ensuring they are meeting and complying with all their local legal requirements, while providing assurance that their employees’ pension contributions are securely managed in a timely manner.

Employers must contribute 18.75% each month from each employee’s salary towards social security, which typically covers health insurance, pensions and other benefits.

The minimum retirement age in Egypt is 60 years old and the minimum pension is calculated at 65% of the minimum wage for employees who have contributed to the scheme for at least 15 years.

Working with an EOR allows employers to streamline their payroll processes while ensuring their business remains compliant with local labor law regulations concerning pension contributions. In this way, employers can ensure they are providing adequate protection and benefits to their employees while avoiding any costly penalties associated with non-compliance.

Income tax withholding in Egypt

Working with an Employer Of Record (EOR) in Egypt can be extremely beneficial for managing income tax withholding. By working with an EOR, companies can outsource their payroll and taxation responsibilities to a professional team that is well-versed in the complexities of Egyptian taxation laws. This ensures that taxes are withheld accurately and on time, avoiding costly fines or other penalties.

Employees in Egypt must pay the applicable rate of income tax, which is progressive and ranges from 0% to 25% depending on income:

  • Up to 15,000 EGP: 0%
  • 15,000 to 30,000 EGP: 2.5%
  • 30,001 to 45,000EGP: 10%
  • 45,001 to 60,000 EGP: 15%
  • 60,001 to 200,000 EGP: 20%
  • 200,001 to 400,000 EGP: 22.5%
  • Over 400,000 EGP:25%

Navigating Egypt’s progressive income tax rates can be a daunting task without expert guidance. That’s where an EOR (Employer of Record) comes in. With thorough knowledge of constantly changing regulatory requirements, they ensure employees pay the correct amount of taxes based on their income bracket. They also provide reports to employers on all taxes paid by each employee, making it easier for employers to keep track of their obligations under Egyptian law.

When businesses partner with an EOR, they can wave goodbye to hours spent poring over Egyptian tax regulations, and focus on their core operations instead. Think of it as a way to streamline your workforce, without sacrificing quality. Let us take care of the details, and you can get back to what you do best.

Hire through an Egypt EOR

Managing foreign employees can be a complex process. However, hiring and employing personnel in a foreign country can be complicated because of differences in employment laws, taxation rules, and payroll requirements. Fortunately, working with an employer of record (EOR) can make this process easier and more efficient. An EOR provides services such as payroll and compliance for businesses that are looking to hire employees overseas.

Working with an Employer of Record (EOR) like Horizons is a great way for businesses looking to hire employees in Egypt to navigate the complex local job market while minimizing potential legal risks associated with non-compliance. An EOR can help manage everything from recruiting and screening candidates to payroll management; so that you save both time and money while staying compliant at all times. If you’re considering expanding into Egypt, get in contact with us for a no-obligation consultation with an Egypt hiring expert. 

FAQs

A Zimbabwe Employer of Record (EOR) solution involves a specialist HR company hiring local employees on behalf of a third-party (usually international) company. The Zimbabwe EOR takes care of payroll, HR and employment compliance.

A Zimbabwe Professional Employer Organization (PEO) usually provides an EOR solution, but may also provides additional HR solutions such as recruitment, global mobility support and contractor management.

A Zimbabwe EOR is useful for any company that seeks to hire employees in Zimbabwe, but doesn’t need an incorporated local entity or subsidiary in the country. It is a faster and more cost-effective solution for those companies.