Employer Of Record in Egypt

Egypt Country Facts

Egypt is a transcontinental country located near the Sinai Peninsula, near Western Asia and the northeast corner of Africa. It is along vital waterways of the Mediterranean Sea and Red Sea. Egypt has one of the oldest cultures in history, dating back to the 6th millennia BCE. It is generally recognized as the location of the cradle of all civilization.

Egypt gained independence from the British Empire in 1922, and it became a republic in 1952 following its revolution. It was at one point a part of Syria, but the United Arab Republic was dissolved back in 1961. Today, the country is considered to be a regional power, and also a worldwide middle power.

The Economy

While Egypt is considered a developing country, it still has a diverse economy. In fact, it’s the second-largest economy in all of Africa, and the 33rd-largest according to nominal GDP.

Liberal economic policies in modern times have spurred growth in the economy and diversity as well. The stock market is booming in the country. Their energy market is perhaps the most developed, with coal, hydropower, natural gas and oil being the main sectors.

The Importance of Small and Medium-sized Companies

The Egyptian government has worked hard to spur growth among small and medium-sized companies (SMEs). Today, SMEs employ roughly 47% of the country’s total workforce, shape roughly 98% of their industrial facilities and provide roughly 75% of all opportunities for jobs.

Population Characteristics

Egypt is the most-populous Arab country, and the third most populous in Africa. The population grew significantly between 1970 and 2010, due to advances in medicine and agricultural productivity. There were only about 3 million people in the country in 1798 (when Napoleon invaded) and there were roughly 95 million as of 2017.

The population is very urbanized, with people living mostly around the Nile River Delta. Nearly the entire country (99.7%) is made up of ethnic Egyptians.

Economic Opportunities

Egypt is improving its ranking among all countries in terms of the ease of doing business. The World Bank Group still ranks the country 114th out of 190 total countries, but they have been working to improve their environment for business in recent years.

Key Sectors of the National Economy

Energy is a huge sector of the Egyptian economy. In fact, it’s the largest producer of oil by a non-OPEC country, and is the second-largest dry natural gas producer in all of Egypt.

Besides energy, tourism is a huge sector of the economy. There are almost 13 million tourists who visit Egypt every year, resulting in almost $11 billion in revenue for the country. It’s also a huge country for transportation, as it’s located right on the Suez Canal — the most important maritime transport engine in the Middle East and that part of Europe and Africa.

Human Talent
The Education Ministry has set up more than 15 STEM high schools since 2011, hoping to increase interest in the fields of science, technology, engineering, and mathematics. Today, roughly half of all STEM graduates in the country are women, yet that’s not being reflected in the workplace.

Noor City

The Talaat Moustafa Group (TMG) is planning Noor City, an eco-friendly, smart city that will be the first of its kind in Egypt. There will be smart houses and digitized workspaces in this forward-thinking, technological city. It’s an urban development project that will be heavily reliant on 5G technology.

Technological Ecosystem

The United States has long sent aid to Egypt, totaling roughly $2.2 billion annually since 1979. The government has also invested heavily in physical and communications infrastructure, paving the way for some truly modern cities.

Facilities for Foreign Investment

Government reforms in 2003 and 2005 made Egypt much friendlier for foreign investment. Corporate taxes dropped from 40% in 2004 to 20% in 2005, spurring more investment in the country. Many privatization and liberalization efforts by the Egyptian government have influenced foreign companies to invest here.

Business Culture in Egypt

Egyptians desire to have meetings set weeks in advance when they discuss business. They all typically begin with informal tea or coffee, and start with light conversation about people’s personal lives. This period is considered essential to establish confidence and trust between all the parties. Typically, business deals will require multiple meetings before anything is finalized.

The culture respects age and experience, so older people tend to have more respect among business leaders in the country. You should also wear quality clothing, as it’s important to Egyptian business people that you dress well.

Egypt Gastronomy: regional and traditional cuisines

Egyptian cuisine is heavy on vegetables and legumes. It integrates a lot of seafood, especially on the coast, but it’s mostly based on foods that are grown. This is because meat is typically very expensive in Egypt.

General Highlights

What you need to know about employing personal in Egypt:

Laws and Agencies that regulate labor relationships

Key Tax and Labor Authorities

Labor Contracts

Basic Requirements

Labor Code dictates contracts must contain:
• Description of the job
• Remuneration
• Duration of employment

Payroll

Egyptian businesses must pay their workers on a monthly basis by the fifth day of the following month. Legal Benefits in Egypt

• Free healthcare (for private companies), either through the Medical Insurance Plan of the Ministry of Social Insurance, or a private plan.

Employers Contribution or Labor Cost
Employers are subject to taxes and other costs for having employees. Employers cannot recover these costs.

Annual Taxable Income
Vietnam has a progressive personal income tax that tops out at 35%. Non-residents are taxed at a flat rate of 20%.

Corporate Tax Rates

Types of Disabilities

Those who are disabled are entitled to social insurance pay in Egypt if they are younger than retirement age, and are determined to be either partially or fully incapable of obtaining gainful employment. They also must have at least three months in a row of contributions to the insurance fund, or six months total.

Maternity Leave

Females who have been with a company for at least 10 months are entitled to maternity leave of 90 days. The maternity leave is fully paid, and 45 days of the leave have to be taken after birth. In addition to the paid maternity leave, females who work for companies that have more than 50 employees have a right to take up to two years of unpaid leave. Females also have the right to terminate an employment contract without providing compensation to the employer if the cause is related to their pregnancy, delivery or marriage — as long as she12 sends three-months’ notice from the date of the incident.

Public Holidays

Termination

The Labor Code outlines rules for termination of an employment contract:

Egyptian companies aren’t required by law to provide severance pay to their workers, unless it’s determined that the termination is unjustified — or if the employer describes severance clearly in the employment contract.