Employer Of Record in Egypt

We make it easy and painless to expand your business into Egypt. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Egypt Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Egypt

As your EOR in Egypt we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Egypt provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.

Expand to Egypt with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Egypt being sure that your staff will be hired in compliance with labor and tax regulations.

Table of Contents

Quick Facts

Egyptian Pound (EGP)


Payroll Cycle:

Modern Standard Arabic

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

Num. States / Province27 governorates




Principal Cities

Cairo Aswan Luxor Alexandria

Sharm El Sheikh


LanguageEgyptian Arabic
Local CurrencyEgyptian pound (E£)
Major ReligionIslam (majority Sunni Muslin – 95%)
Date FormatDMY
Thousands Separator Format999,999,999.99
Country Dial Code+20
Time ZoneEgypt Standard Time (UTC +2)
Population102,674,145 (14th in the world)
Border CountriesWest: Libya; South: Sudan; Northeast: Israel
Continental surface1,010,408 KM2 (29th)
Fiscal YearJuly 1 to June 30
VAT %14%
Minimum WageEGP 2,400 per month
Taxpayer Identification Number Name in the countryTaxpayer Identification Number (TIN)
Current PresidentAbdel Fattah el-Sisi

What you need to know about employing personal in Egypt:

Laws and Agencies that regulate labor relationships

LawsBrief Description
Constitution of the Arab Republic of EgyptThe fundamental law in Egypt that was passed in 2014. It sets all the laws, rules and regulations for the country.
Labour Law (Egyptian Employment Law No. 12 of 2003)


The law that sets all the rules and regulations for employment in Egypt

Tax CodeThe code that sets all the tax regulations for individuals and businesses in Egypt
Social Security (Law No. 148 of 2019)The law that sets all regulations for social security programs. It was revised in 2019. It’s administered by the Egyptian Social Insurance Authority.

Key Tax and Labor Authorities

The Ministry of FinanceThe Cabinet of Egyptian government responsible for economic growth, job creation and taxation
Social Security (Law No. 148 of 2019)The law that sets all regulations for social security programs. It was revised in 2019.

Labor Contracts




Employment contracts can either be for an indefinite or definite period. Those for a definite period must either:

•       Stop after a stipulated period that is laid out in the contract; or

•       Stop after the completion of a project


Work Hours

Employees can’t work more than 8 hours a day or 48 hours a week, which excludes periods of rest and meal times. All employees are entitled to one day of rest after working for six days in a row.

Basic Requirements

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


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.
Minimum WageEGP 2,400 per month
WagesThe payroll frequency in Egypt is on a monthly basis and has to be paid on the 5th of the next month.
OvertimeOvertime for hours worked at night (between sunset and sunrise) must be paid at 170% the normal wage amount.
Vacations or PTOAll employees are entitled to 21 days of paid leave annually. This increases to 30 days after an employee turns 50 years old, or after the employee is with the company for 10 consecutive years.
Leaves of Absence

Employees can take sick leave, based on a report submitted by a medical authority. During this time, the employee can collect their salary. The pay rate is as follows:

•       0-90 days: 75%

•       90-180 days: 85%

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%.

Over this amountNot over this amountTax % on Excess
015,000 EGP0%

Corporate Tax Rates

DefinitionTax Rate

Resident companies taxed on worldwide net


Non-resident companies taxed on income from permanent establishments in Egypt22.5%

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

DateHoliday Name
January 7Coptic Christmas
January 25Revolution Day
April 24Easter Sunday
April 25Sinai Liberation Day
April 25Eid Sham El Nessim
May 1Labor Day
May 2 to May 5Ed Al-Fitr
May 2 to May 3End of Ramadan
June 30Revolution Day
July 9-13 (likely)Eid Al-Adha
July 23Revolution Day
July 29-30El-Hijra
October 6Armed Forces Day


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

Type of TerminationBrief Description



No cause

Employers who want to terminate a worker must make their case before the Ministry of Manpower and Migration. That committee has 15 days to decide if they want to grant the request.

Employers can also terminate the employee without this, but the employee would retain the right to challenge it in the court.


Notice period

If the employee has less than 10 years at the company, the employer must provide two months’ notice. This increases to three months’ notice once the employee has reached 10 years of service.

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.

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