Rivermate | Egypt flag

Hire in Egypt through our Employer of Record (EOR)

Hire remote employees easily and compliantly via our Employer of Record (EOR) service in Egypt

Rivermate | Landscape of Egypt
Cairo
Capital
Egyptian Pound
Currency
Arabic
Language
48 hours/week
Working hours
4.18%
GDP growth
0.29%
GDP world share
102,334,404
Population
Monthly
Payroll frequency

How Rivermate can help you

Global EOR coverage

With over 150+ countries covered, we can help you expand your business globally with your Employer of Record (EOR) needs.

100% Compliance

We guarantee 100% compliance with local labor laws and regulations through our network of local experts in every country.

Fully Customizable

We offer fully customizable solutions to fit your business needs, whether you need to hire one employee or a whole team.

Dedicated Support

You as well as your employee(s) get assigned a dedicated account manager who you can call, WhatsApp, mail, Slack anytime.

Introduction to EOR

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

In the context of Egypt, an EOR can be particularly useful for foreign companies looking to tap into the country's diverse talent pool or expand their operations in the region. By partnering with an EOR, businesses can navigate Egypt's complex labor laws, tax regulations, and cultural nuances more efficiently, while focusing on their core operations and growth strategies.

How Does EOR Work?

The EOR model operates through a series of interconnected steps:

  1. Client Partnership: A company (the client) partners with an EOR provider to hire employees in Egypt.

  2. Employee Onboarding: The EOR legally hires the employee on behalf of the client company, handling all necessary paperwork and compliance requirements.

  3. Payroll Management: The EOR manages payroll, including salary calculations, tax withholdings, and social security contributions in accordance with Egyptian law.

  4. Benefits Administration: The EOR ensures that employees receive all mandatory benefits as required by Egyptian labor laws, such as paid leave, health insurance, and end-of-service benefits.

  5. Compliance Oversight: The EOR stays up-to-date with changes in local labor laws and regulations, ensuring ongoing compliance for the client company.

  6. Day-to-Day Management: While the EOR handles administrative and legal aspects, the client company maintains control over the employee's daily work activities and responsibilities.

Benefits of Using an EOR

Employing an EOR in Egypt offers several advantages for businesses:

  1. Rapid Market Entry: Companies can quickly establish a presence in Egypt without the need to set up a legal entity, saving time and resources.

  2. Compliance Assurance: EORs have in-depth knowledge of Egyptian labor laws, ensuring that companies remain compliant with local regulations and avoid potential legal issues.

  3. Risk Mitigation: By outsourcing employment responsibilities, companies reduce their exposure to legal and financial risks associated with non-compliance.

  4. Cost-Effectiveness: EORs can often provide more cost-effective solutions compared to establishing and maintaining a local subsidiary, especially for smaller-scale operations.

  5. Flexibility: Companies can easily scale their workforce up or down without the complexities of managing a local entity.

  6. Local Expertise: EORs offer valuable insights into Egyptian business culture, hiring practices, and market conditions, helping companies navigate the local landscape more effectively.

  7. Focus on Core Business: By delegating administrative and compliance tasks to the EOR, companies can concentrate on their core business activities and strategic goals in the Egyptian market.

  8. Access to Talent: EORs can help companies tap into Egypt's diverse talent pool, facilitating the hiring of local professionals with specific skills and expertise.

By leveraging an EOR's services, companies can effectively navigate the complexities of Egypt's business environment while capitalizing on the country's strategic location, growing economy, and skilled workforce.

Rivermate | EOR introduction

Employment Landscape

Egypt's employment landscape is characterized by a large, youthful workforce of approximately 29.23 million individuals. The country faces challenges such as low labor force participation, especially among women, a significant informal sector, and a mismatch between educational outputs and market demands. Despite these challenges, Egypt is making strides in improving literacy rates and fostering digital skills to meet the needs of an evolving economy.

Overview of Labor Laws

Egypt's labor laws aim to protect workers' rights while balancing the needs of employers. Key aspects include:

  • Employment contracts: Written contracts are mandatory and must specify job details, compensation, and duration.
  • Working hours: The standard workweek is 48 hours, with a maximum of 8 hours per day.
  • Overtime: Work beyond standard hours must be compensated at a higher rate.
  • Leave: Employees are entitled to annual paid leave, sick leave, and maternity leave.
  • Termination: Specific procedures must be followed for termination, including notice periods and severance pay.
  • Social insurance: Employers must contribute to social insurance schemes covering pensions, disability, and unemployment.

Cultural Considerations

Understanding Egyptian workplace culture is crucial for successful employment relationships:

  • Relationship-building: Personal connections are highly valued in business settings.
  • Communication: Indirect communication is often preferred to maintain harmony.
  • Hierarchy: There's a strong respect for authority and seniority in the workplace.
  • Work-life balance: Family commitments are important, though long working hours are common.
  • Language: While English proficiency is growing, Arabic remains dominant in most workplaces.
  • "Wasta": Personal networks can influence hiring and promotion decisions.

Challenges of Direct Hiring

Direct hiring in Egypt can present several challenges for foreign companies:

  1. Legal complexities: Navigating Egyptian labor laws and regulations can be complex without local expertise.

  2. Administrative burden: Managing payroll, taxes, and social insurance contributions requires significant resources and local knowledge.

  3. Cultural nuances: Understanding and adapting to Egyptian workplace culture can be challenging for foreign employers.

  4. Language barriers: While English is widely used in business, many legal documents and official communications are in Arabic.

  5. Talent acquisition: Identifying and attracting skilled workers can be difficult without established local networks.

  6. Compliance risks: Ensuring full compliance with rapidly evolving labor laws and regulations can be challenging for foreign entities.

  7. Termination procedures: Following the correct legal procedures for termination can be complex and time-consuming.

  8. Work permit and visa issues: Obtaining necessary documentation for foreign workers can be a lengthy and complicated process.

Given these challenges, many foreign companies opt to use services like those provided by Rivermate, an Employer of Record, to simplify their hiring process in Egypt and ensure compliance with local laws and regulations.

Employ top talent in Egypt through our Employer of Record service

Book a call with our EOR experts to learn more about how we can help you in Egypt.

Rivermate | EOR in Egypt

EOR in Egypt

Egypt's unique economic landscape and regulatory environment shape how Employer of Record (EOR) services operate in the country.

EOR services in Egypt act as intermediaries between foreign companies and local employees, handling various aspects of employment on behalf of the foreign entity. This arrangement allows international businesses to hire Egyptian talent without establishing a legal entity in the country.

The EOR provider becomes the legal employer of the workers in Egypt, taking on responsibilities such as:

  • Payroll processing and tax withholding
  • Ensuring compliance with local labor laws and regulations
  • Managing employee benefits and social insurance contributions
  • Handling employment contracts and terminations

This setup is particularly beneficial for companies looking to:

  • Test the Egyptian market before fully committing to establishing a local presence
  • Hire remote workers or small teams in Egypt
  • Quickly onboard employees for time-sensitive projects

EOR services navigate Egypt's complex labor laws, including regulations on working hours, leave entitlements, and termination procedures. They also manage the intricacies of the country's social insurance system and tax regulations.

For employees, working through an EOR means they receive local contracts compliant with Egyptian law, ensuring their rights and benefits are protected according to local standards.

It's important to note that while EOR services facilitate employment, the foreign company retains control over the employee's day-to-day work and responsibilities. This arrangement allows for a balance between local compliance and operational flexibility for international businesses operating in Egypt.


Payroll & Taxes

Egypt's payroll and tax system is a complex structure that involves contributions from both employers and employees. This system is designed to support various social insurance schemes and maintain a progressive income tax structure. Understanding these regulations is crucial for businesses operating in Egypt to ensure compliance and proper financial management.

Employer Contributions

Employers in Egypt play a significant role in the country's social insurance system. They are required to make substantial contributions to various insurance schemes, which are calculated as a percentage of the employee's gross salary. The total employer contribution rate stands at 24% of the employee's gross salary, broken down as follows:

  • Old Age, Disability, and Death Insurance: 14%
  • Unemployment Insurance: 2%
  • Work Injury Insurance: 1%
  • Health Insurance: 7% (shared between employer and employee)

It's important to note that these contributions are subject to a monthly maximum wage cap, currently set at approximately 12,200 EGP for the private sector. Employers are only required to calculate and contribute based on salaries up to this limit.

Employers must also register with the social insurance system and take on the responsibility of withholding employee contributions, adding their own, and remitting these payments on a monthly basis. This process is a crucial aspect of an employer's tax responsibilities in Egypt.

Employee Contributions

Employees in Egypt are subject to both income tax and social insurance contributions. The income tax system in Egypt is progressive, with rates ranging from 0% to 22.5% based on annual income brackets. As of January 2023, an additional 25% tax rate applies to annual income exceeding 1 million EGP.

The current income tax rates are as follows:

  • Up to 15,000 EGP (annual): 0%
  • 15,001 EGP – 30,000 EGP: 2.5%
  • 30,001 EGP – 45,000 EGP: 5%
  • 45,001 EGP – 60,000 EGP: 10%
  • 60,001 EGP – 200,000 EGP: 15%
  • 200,001 EGP – 400,000 EGP: 20%
  • Over 400,000 EGP: 22.5%

In addition to income tax, employees are required to contribute to social insurance schemes:

  • Old Age, Disability, and Death Insurance: 11% of gross salary
  • Unemployment Insurance: 1% of gross salary

Similar to employer contributions, employee social insurance contributions are also subject to a monthly maximum wage cap, currently around 9,860 EGP for the private sector.

It's crucial to remember that employers are responsible for deducting both income tax and social insurance contributions from their employees' salaries. This withholding process ensures that employees fulfill their tax obligations through their employer.

Understanding these intricate payroll and tax regulations is essential for both employers and employees in Egypt. For businesses, especially those new to the Egyptian market, partnering with a global Employer of Record like Rivermate can provide valuable assistance in navigating these complexities and ensuring full compliance with local laws and regulations.

Get a payroll calculation for Egypt

Understand what the employment costs are that you have to consider when hiring Egypt

Employee Benefits

Egypt offers a comprehensive set of employee benefits, combining mandatory provisions with optional perks that enhance the overall compensation package. As an Employer of Record (EOR), Rivermate expertly manages these benefits, ensuring compliance with local labor laws while providing attractive options to retain top talent. By partnering with an EOR, companies can navigate the complexities of the Egyptian benefits landscape with ease, focusing on their core business operations while offering employees a competitive and legally compliant benefits package.

Mandatory Benefits

  • Social Security and Health Insurance coverage for full-time, part-time, and eligible temporary workers
  • Employer and employee contributions to the Egyptian Social Security Organization (EOSSO)
  • Health insurance covering medical expenses, hospitalization, medications, and maternity care
  • Disability insurance providing income support for permanent or temporary disabilities
  • Old-age pension offering financial security upon retirement
  • Survivor's benefits for families of deceased insured employees
  • 21 days of paid annual leave, increasing to one month after ten years of service or at age 50
  • 12 paid national and religious holidays annually
  • One-time, one-month paid leave for Muslim employees' pilgrimage (Hajj) after five years of service
  • Paid sick leave as per doctor's recommendations
  • 90 days of paid maternity leave, with an additional 45 days of unpaid leave option
  • End of service gratuity upon employment termination
  • Overtime pay at a higher rate for work beyond regular hours

Optional Benefits

  • Profit-sharing schemes to incentivize high performance
  • Performance-based bonuses tied to individual or company goals
  • Meal allowances to offset lunch costs
  • Transportation allowances for commuting expenses
  • Life insurance for added financial protection
  • Disability insurance beyond the mandatory coverage
  • Subsidized gym memberships or on-site fitness programs
  • Flexible work arrangements, including remote work options
  • Childcare assistance through on-site facilities or financial aid
  • Extended paid parental leave beyond the legal minimum
  • Wellness programs offering stress-reduction techniques and health screenings
  • Company discounts on products or services
  • Educational assistance or tuition reimbursement for further studies

By offering a mix of mandatory and optional benefits, employers in Egypt can create attractive compensation packages that support employee well-being, boost morale, and enhance overall job satisfaction. As an EOR, Rivermate ensures seamless administration of these benefits, allowing companies to focus on their core business while providing employees with comprehensive and compliant benefits packages.


Termination & Offboarding

The process of termination and offboarding in Egypt is governed by specific regulations that protect both employers and employees. Understanding these procedures is crucial for companies operating in the country to ensure compliance and maintain positive relationships with their workforce.

Grounds for Termination

In Egypt, employers can terminate an employee's contract for various reasons. These include:

  1. Serious misconduct
  2. Economic difficulties
  3. Organizational restructuring

For misconduct, immediate termination is possible if the employee commits actions such as gross negligence, fraud, or repeated safety violations. However, for economic or organizational reasons, the employer must provide proper justification and adhere to notice requirements.

Notice Periods

The length of notice required depends on the type of contract and the employee's tenure:

  • For indefinite term contracts:

    • Less than 10 years of service: 2 months' notice
    • More than 10 years of service: 3 months' notice
  • For definite term contracts:

    • These typically end on a predetermined date
    • Early termination may result in compensation for the remaining term

Severance Pay

Egyptian law mandates severance pay in certain situations:

  • Termination for cause: Severance may not be required, depending on the severity of misconduct
  • Termination without cause: Employees are entitled to at least two months' wages for each year of service

Offboarding Process

While not explicitly outlined in Egyptian labor law, a proper offboarding process typically includes:

  1. Communicating the termination decision
  2. Providing required notice or compensation in lieu of notice
  3. Calculating and paying final wages and any severance due
  4. Retrieving company property
  5. Conducting an exit interview (optional but recommended)
  6. Updating internal records and systems

Dispute Resolution

In case of disagreements regarding termination, parties can seek resolution through:

  1. Negotiation between the employer and employee
  2. Filing a case with the Labor Courts in Egypt

By following these guidelines, companies can ensure a smooth and legally compliant termination and offboarding process in Egypt. It's always advisable to consult with local legal experts or an Employer of Record service like Rivermate to navigate the complexities of Egyptian labor law effectively.

Visa & Work Permits

Egypt's rich history and growing economy make it an attractive destination for foreign workers. However, navigating the visa and work permit requirements can be complex. Here's a concise overview of what foreign workers need to know about working legally in Egypt:

Work Visa Requirements

To work in Egypt, foreign nationals typically need:

  1. A valid passport with at least six months of validity
  2. A work visa obtained from an Egyptian embassy or consulate
  3. A work permit issued by the Ministry of Manpower and Immigration

Work Permit Process

The work permit process involves several steps:

  1. The Egyptian employer must obtain approval from the Ministry of Manpower and Immigration
  2. The employer submits necessary documents, including the employment contract and educational certificates
  3. Once approved, the foreign worker can apply for a work visa at an Egyptian embassy
  4. Upon arrival in Egypt, the worker must register with local authorities and obtain a residency permit

Important Considerations

  • Work permits are usually valid for one year and can be renewed
  • Certain professions may have additional requirements or restrictions
  • The process can be time-consuming, so it's advisable to start well in advance
  • Some nationalities may be subject to additional security clearances

Employer of Record Solution

For companies looking to hire foreign workers in Egypt without establishing a local entity, partnering with an Employer of Record (EOR) like Rivermate can simplify the process. An EOR can handle visa and work permit applications, ensuring compliance with local labor laws and regulations.

By understanding these requirements and considering professional assistance, foreign workers and their employers can navigate Egypt's employment landscape more effectively.

Rivermate | EOR introduction

Why Rivermate

Rivermate stands out as an exceptional choice for Employer of Record (EOR) services in Egypt, offering a unique and human-centric approach that sets us apart from the competition. Instead of relying solely on a platform, we provide a comprehensive, full-service solution that supports you throughout your global expansion journey.

At Rivermate, we pride ourselves on being more than just an EOR provider – we're your dedicated global HR department. Our commitment to your success extends beyond basic services, as we also offer recruitment assistance to help you build the best team for your Egyptian operations.

Here's why Rivermate is the ideal partner for your business:

1. Personalized Attention

Unlike larger EOR providers who may treat you as just another number, we understand that smaller businesses require special care and attention. We're committed to helping you grow and succeed in the Egyptian market, providing tailored support that addresses your unique needs and challenges.

2. Human-Centric Approach

In an age of automation, we believe that HR and payroll services should maintain a human touch. That's why we've eschewed AI chatbots and automated emails in favor of real people who genuinely care about your success. Our team is available 24/7/365 to address your concerns and provide expert guidance.

3. Global Reach with Local Expertise

Our network of local experts spans over 135 countries, including Egypt. This allows us to offer you the perfect blend of global perspective and local knowledge. We'll help you navigate the intricacies of Egyptian labor laws and regulations, ensuring full compliance while optimizing your operations.

4. Unparalleled Flexibility

We understand that every business has unique requirements. Whether you need specific clauses in your employment contracts or have particular payroll preferences, we're here to accommodate your needs. Our 100% flexible approach means we can adapt our services to align perfectly with your business objectives.

By choosing Rivermate as your EOR partner in Egypt, you're not just getting a service provider – you're gaining a dedicated ally in your global expansion efforts. We're committed to your success and ready to support you every step of the way as you establish and grow your presence in the Egyptian market.

Frequently Asked Questions

user avatar

The Global EOR leader

Hear from 1000+ customers


Greg M.

CEO, Learnwise

What stands out most is their quick response time and the efficiency of their onboarding process. Their affordable pricing model is also a major plus, making it accessible for businesses of various sizes.

Hallman L.

Founder, Small-Business

Clients benefit from the fact that they can bring global expertise into the local environment. Rivermate allows me to manage my employees across different countries.

Perlin G.

Head of Sales, Small-Business

Lucas helped me set up an employee in Spain for our company. The whole process was explained very well by Lucas and it all went super smooth.

Leon B.

Founder, Grive

They are a rather small team, which is perfect for me. Before Rivermate, I worked with a bigger EOR and they did not care about me.

Senna V.

Coordinator, Mid-Market

Rivermate has recently completed several projects where we needed remote workers in different countries. I can definitely recommend the service they provide. From taxes to insurances to visas, everything is arranged through 1 convenient platform.


Used by the world's most average companies

Rivermate | abacus
Rivermate | crowdcube
Rivermate | boloo
Rivermate | clinicaloutcomes
Rivermate | ct
Rivermate | elvtr
Rivermate | generationsingapore
Rivermate | gomarkets
Rivermate | gotoinc
Rivermate | grive
Rivermate | oscarsfarm
Rivermate | procurementexpress
Rivermate | remodigital
Rivermate | rephine
Rivermate | royfort
Rivermate | tupu
Rivermate | v
Rivermate | vendere
Rivermate | zebrainsights
Rivermate | abacus
Rivermate | crowdcube
Rivermate | boloo
Rivermate | clinicaloutcomes
Rivermate | ct
Rivermate | elvtr
Rivermate | generationsingapore
Rivermate | gomarkets
Rivermate | gotoinc
Rivermate | grive
Rivermate | oscarsfarm
Rivermate | procurementexpress
Rivermate | remodigital
Rivermate | rephine
Rivermate | royfort
Rivermate | tupu
Rivermate | v
Rivermate | vendere
Rivermate | zebrainsights

Hire Your Employees Globally with Confidence

We're here to help you on your global hiring journey

Rivermate

Hire anyone, anywhere...

The HR platform for global teams. Why not hire anywhere? We have global coverage (150+ countries) with boots on the ground. Your talent pool just got infinite.