Egypt

Registrations and Establishing an Entity

• Incorporation via the General Authority for Investment and Free Zones (GAFI)
• Submit notarized draft contract, name certificate, capital deposit proof
• Legalization of signatures by Cairo Bar Association
• Company license typically issued within 48 hours

Banking

• Employee bank account requires passport, residence permit, and banking references
• Banks operate Sun–Thu, 08:30–14:00

Working Week

• Sunday to Thursday, 8 hours/day
• Some industries operate Saturday as an additional workday

Holiday Accrual

• 21 days per year; increases to 30 days after 10 years or for employees over 50
• Public holidays: up to 14 annually; double pay if worked

Maternity Leave

• 90 days paid (up to 3 times in career)
• 1-hour daily break for breastfeeding for 24 months after birth

Paternity Leave

• Not statutory

Sick Leave

• Up to 6 months annually
• 75–100% pay based on severity
• Absences over 180 days require medical board evaluation

National Service

• Mandatory for males; wages paid by military during service

Tax Year

January 1 – December 31

Income Tax (Annual, in EGP)

• 0–40,000: 0%
• 40,001–55,000: 10%
• 55,001–70,000: 15%
• 70,001–200,000: 20%
• 200,001–400,000: 23%
• 400,001–1,200,000: 25%
• Over 1,200,000: 28%
• Personal exemption: EGP 20,000
• Tax-free threshold: EGP 40,000

Social Security Contributions (2025)

• Employee: 11%
• Employer: 18.75%
• Base: EGP 2,300 to 14,500
• Annual 3% increase to base salary

Payroll

• Monthly payroll and tax reports due by 15th
• Online payslips permitted
• Reports must be retained 7 years

Reports

• Monthly: Tax, social insurance, allowances
• Annual: Salary reconciliation in January

New Employees

• Registration within 15 days
• Submit ID, education certificates, birth certificate, employment contract, Form 1, and passport/work permit if applicable

Leavers

• Submit resignation/termination letters, clearance form, final settlement
• Notify social insurance to unregister the employee
• Provide End of Service Certificate if needed

Employee Benefits

• Maternity leave, pilgrimage leave (1 month after 5 years), sick leave, 13th-month bonuses

Expenses

• Reimbursable items (e.g., car mileage) are taxable unless treated separately
• Expense reimbursements vary by company policy

Visas

• Required for all non-citizens
• Residence and work permit mandatory for employment over 3 months

Required Documents:

• Employment contract
• Medical and police clearance
• Proof of residency and employer registration
• Work permit issued and tracked by Ministry of Manpower

• Employment contracts must be in Arabic and in triplicate
• Probation not to exceed 3 months
• Payroll and tax filings strictly regulated with late penalties

Further Information For more information, or assistance with Egypt tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.