Hiring at a Glance

Egypt is one of the largest labor markets in the Middle East/North Africa. Its workforce is young (median age ~25) and literate, with growing private-sector opportunities in telecom, energy, and finance. The economy has expanded service and tech sectors (e.g. Cairo’s startup scene). Arabic is the official language for business, although English is common in multinational firms. Employers must navigate strong pro-employee labor laws; for example, written contracts in Arabic are the norm, and stringent rules apply to working hours, overtime, and benefits.

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Key characteristics of talent market

• Large, diverse workforce: Over 100 million people, with a high proportion of youth. Major cities (Cairo, Alexandria) concentrate educated talent.
  
• Government commitment to growth: Recent reforms and infrastructure projects have boosted demand for engineers, accountants, and managers.
  
• Language considerations: Arabic contracts and communications are essential by law, though many skilled professionals speak fluent English.
  
• Regional hiring hub: Egypt’s stable corporate sector (banking, oil & gas, telecom) and relatively low labor costs attract foreign investment, especially in finance and back-office roles.
  
  

Most In-Demand Skills in 2026

Skills in demand reflect Egypt’s growing industries: software and IT (especially mobile/web developers, network engineers), cybersecurity, data analytics, and automation for its maturing tech sector. Healthcare IT and biotech skills are rising due to a focus on medical services. In business services, accounting, financial analysis, and insurance/risk management professionals are sought. Also, customer support and BPO roles (English and Arabic) continue to be important for regional markets.

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Top Universities Supplying Talent

Egypt’s top universities include Cairo University, American University in Cairo (AUC), Ain Shams University, Alexandria University, and Helwan University. AUC’s computer science and business graduates are popular with international employers, while Cairo University is known for engineering and IT programs. These institutions, among others, produce many of Egypt’s professionals in engineering, business, and healthcare fields.

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Salary Benchmarks for Roles

Egyptian salaries are generally lower in local currency than in Western markets, but skilled professionals can earn competitive rates. Indicative annual salaries (2026) for mid-career roles: software engineer ~EGP 300,000–500,000; data engineer ~EGP 350,000–600,000; finance/accounting manager ~EGP 300,000–600,000. (These ranges can be higher in multinational firms.) Egypt has no legal requirement for a 13th-month salary bonus, but many employers pay performance bonuses or “Eid bonuses” seasonally. Other mandates: after one year, 21 days paid vacation (increasing to 30 days with tenure), paid public holidays, and standard 120 days paid maternity leave.

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Employer of Record vs Legal Entity Setup in Egypt

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To legally hire employees, a company must

• Establish a local legal entity: Register with the General Authority for Investment (GAFI) and the Commercial Registry. Obtain a tax card (TIN) from the Egyptian Tax Authority.
  
• Social insurance registration: Register each employee with the National Organization for Social Insurance (NOSI). Both employer and employee make social insurance contributions (11% employee, 18.75% employer of salary up to a cap). Employers must also contribute to the social solidarity fund and accident insurance as required by law.
  
• Issue Arabic contracts: Employment contracts must be in Arabic and drawn in triplicate (one copy to the Social Insurance office). French or English translations may accompany them, but the Arabic version is binding.
  
• Maintain Arabic payroll records: Submit a copy of each contract to the local social security office and keep detailed payroll ledgers and attendance records.
  
• Work permits for expats: Foreign employees need a valid Egyptian work permit and residence visa; the employer usually arranges this through the Ministry of Manpower.
  

Legal hiring in Egypt is compliance-intensive: for instance, the Social Insurance Law requires registering workers immediately and paying social contributions monthly, or face fines.

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Cost of Entity Setup

Incorporating in Egypt involves moderate costs. Government fees and notary charges are relatively low, but businesses should budget for legal assistance (Arabic documentation) and minimum capital requirements (~EGP 50,000–100,000 for a private company). The process (company registration, obtaining tax card, bank account setup) can take 6–8 weeks. In practice, many foreign firms use EORs to avoid these setup delays and the ongoing tasks of local corporate maintenance.

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What Hiring Through an EOR Means in Egypt

An Employer of Record (EOR) in Egypt becomes the legal employer registered with the Egyptian Tax Authority, Social Insurance Authority, and Ministry of Manpower, while the employee works exclusively for your company. You manage day-to-day work and performance; the EOR carries all statutory employer responsibility.

Egypt’s employment system is governed by:

• Labour Law No. 12 of 2003 (and amendments)
  
• Social Insurance Law
  
• Income Tax Law
  
• Minimum wage decrees
  
• Union and labour-court framework
  

Foreign companies cannot legally employ staff in Egypt without:

• An Egyptian employing entity
  
• Tax Authority registration
  
• Social insurance registration
  
• Labour office registration
  

An EOR provides this entire employer infrastructure without requiring you to establish an Egyptian company.

An EOR in Egypt handles:

• Egypt-law compliant employment contracts
  
• Payroll processing in EGP
  
• Income tax withholding and filing
  
• Social insurance contributions
  
• Military service status checks (for male employees)
  
• Statutory leave and public holidays
  
• Termination and labour-court handling
  
• Immigration and work permits
  

This model is ideal for companies that want to hire in Egypt without managing tax registration, social insurance, and labour-court exposure directly.

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Risk Involved in Both Models

Egypt’s labour system is documentation-driven and court-enforced.

Key characteristics:

• Written contracts required
  
• Mandatory social insurance
  
• Minimum wage enforcement
  
• Strong labour-court protection
  

Compliance failures can result in:

• Back payment of wages
  
• Tax penalties
  
• Social insurance penalties
  
• Court-ordered compensation or reinstatement
  

In Egypt, payroll under-reporting and improper termination are the biggest employer risks.

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EOR Vs. Entity: When to use What?

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Why an EOR Is the Most Efficient Way to Hire in Egypt

Egypt offers strong talent in engineering, operations, finance, and support but employment is governed by social insurance systems and strict termination law.

An EOR is not just payroll. It is the legal employer recognised by Egyptian authorities, responsible for:

• Labour Law compliance
  
• Tax and social insurance filings
  
• Payroll execution
  
• Termination handling
  

This allows foreign companies to operate in Egypt without inheriting labour-court and inspection exposure.

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#1. EOR Manages Social Insurance and Payroll Risk

Employment cost in Egypt includes:

• Social insurance
  
• Income tax
  
• Stamp and payroll levies

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#2. EOR Controls Termination and Court Risk

Egyptian law requires:

• Valid grounds
  
• Proper notice
  
• Compensation for unfair dismissal

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#3. EOR Manages Minimum Wage and Classification

Egypt enforces national minimum wages by decree.

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#4. EOR Avoids Entity & Admin Burden

Entity setup requires:

• Company registration
  
• Tax and insurance registration
  
• Payroll and inspections

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EOR vs. PEO in Egypt: How to Decide the Right Hiring Model?

A PEO in Egypt cannot legally employ workers. An Egyptian employing entity is required.

• PEO: HR/payroll support only
  
• EOR: Legal employer

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Payroll, Taxes, and Monthly Compliance

Egyptian payroll is handled monthly. Key points:

• Income tax withholding: Employers deduct salary tax at progressive rates (0%–25%) and remit it monthly. Salaries are taxed via withholding (Form 4), with the employer responsible for payment. Tax on salaries must be paid to the Tax Authority by the 15th of each month for the previous month’s payroll.
  
• Social insurance contributions: Employers withhold 11% of gross salary (capped at the “social insurance ceiling,” currently EGP 14,500/month) from the employee, and pay an additional 18.75% themselves. These cover pensions, healthcare, and unemployment support. Employers deposit both shares by the end of each month.
  
• No 13th salary: Egypt does not mandate a 13th-month bonus, though discretionary bonuses are common.
  
• Withhold and file: Each month, employers calculate each employee’s net pay (gross minus tax and social insurance) and make bank transfers. They then submit the monthly “Salary Tax Declaration” and pay the withheld tax via the electronic tax portal by the 15th.
  
• Recordkeeping: Employers must keep payroll records, contracts, and tax filings for audits. Egyptian law requires preserving payslips, tax payment proofs, and social insurance files (usually 4–5 years).
  
  

Salary Structure: Where Most Compliance Issues Begin

Egyptian law is clear that all regular wage components (basic salary, allowances, bonuses) count as “subject to social insurance,” but there is some flexibility in how employers structure compensation. Common pitfalls include: failing to incorporate all allowances into the “insurable wage,” and misunderstanding overtime rules. For example, law mandates overtime at 135% pay beyond a 48-hour week. Underestimating this or misclassifying overtime hours can lead to underpayment claims. Furthermore, fringe benefits (like employer-provided housing or company car) may be taxable or require social insurance on imputed value. Careful structuring and documentation of salary and benefits is essential to avoid disputes.

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What Monthly Payroll Operations Actually Involve

Monthly payroll tasks in Egypt include:

• Salary calculation: Tally each employee’s gross wage (including any overtime, leave encashment, or bonuses), subtracting 11% (employee SI) and income tax.
  
• Payslip and payment: Issue a payslip in Arabic, transfer net salary to the employee’s bank account by month-end.
  
• Government remittances: Deposit withheld payroll taxes and insurance contributions via the Tax Authority’s online portal. As noted, taxes are remitted by the 15th of the following month. Social insurance payments are made through designated bank channels.
  
• Monthly declarations: File the “Salary Tax Declaration” electronically for all employees.
  
• Documentation: Maintain employee files, including a copy of the contract (which must have been sent to social insurance), attendance logs, and payment records. These will be needed for any labor inspection or tax audit.
  
  

Step-by-Step Onboarding Process With an EOR in Egypt

Hiring in Egypt is a registry-driven, insurance-heavy process. A compliant onboarding flow protects you from tax penalties and labour-court disputes.

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1. Confirm EOR Registration

Verify the EOR is registered with:

• Egyptian Tax Authority
  
• Social Insurance Authority
  
• Ministry of Manpower
  

Unregistered employers cannot legally pay salaries.

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2. Identify Governing Work Location

The EOR determines:

• Applicable labour office
  
• Insurance office jurisdiction
  
• Minimum wage decree coverage
  
  

3. Validate Role and Job Classification

EOR assesses:

• Permanent vs fixed-term
  
• Job grade
  
• Working time and overtime eligibility
  
  

4. Structure Salary and Tax Model

EOR validates:

• Gross salary in EGP
  
• Income tax bracket
  
• Insurance base
  
• Allowances and bonuses
  
  

5. Provide Full Cost-to-Company Breakdown

Includes:

• Gross salary
  
• Employer insurance
  
• Estimated tax
  
• EOR fee
  
  

6. Draft Egypt-Compliant Contract

Contract includes:

• Duties and title
  
• Salary and pay cycle
  
• Working hours
  
• Leave entitlements
  
• Disciplinary process
  
• Termination and notice
  
  

7. Register Employee

EOR registers with:

• Tax Authority payroll system
  
• Social Insurance
  
• Labour office
  
  

8. Set Up Workplace Policies

EOR issues:

• Code of conduct
  
• Leave and attendance policy
  
• Disciplinary process
  
  

9. Military Service and Immigration Checks

For male employees, EOR verifies:

• Military service status
  

For foreigners:

• Work permit
  
• Residence permit
  
  

10. First Payroll and Filings

EOR processes:

• Salary
  
• Tax and insurance remittance
  
• Payslip issuance
  
  

11. Ongoing Compliance and Termination

EOR manages:

• Salary changes
  
• Inspections
  
• Contract updates
  
• Termination process
  
• Labour-court representation
  

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Build Your Egypt Team with Bolto EOR

Expanding into Egypt is not just about hiring, it is about handling tax, insurance, and labour-court exposure correctly.

Bolto’s Employer of Record model absorbs:

• Labour Law complexity
  
• Tax and social insurance exposure
  
• Payroll risk
  
• Termination and court exposure
  

So you can scale in Egypt without becoming the legal employer.

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Full Legal Employer Coverage in Egypt

Bolto becomes the legal employer before:

• Tax Authority
  
• Social Insurance Authority
  
• Ministry of Manpower
  
• Labour courts
  

Bolto manages:

• Contracts and policies
  
• Payroll and statutory filings
  
• Leave and attendance
  
• Audit and inspection response
  
• Termination execution
  

You manage work, Bolto manages legal risk.

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Built for Fast Entry and Clean Exit

With Bolto EOR:

• Hire in weeks
  
• Avoid Egyptian company formation
  
• Skip tax and insurance registration
  
• Exit without liquidation
  
  

Transparent Cost Structure

Bolto provides:

• Salary and statutory breakdown
  
• Employer and employee contributions
  
• Fixed EOR fees
  
  

End-to-End Employee Lifecycle Management

Bolto manages:

• Contract drafting
  
• Payroll and tax
  
• Insurance contributions
  
• Leave and benefits
  
• Discipline and termination
  
• Labour-court defense
  

You never deal directly with Egyptian labour authorities.

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Designed for Risk-Controlled Growth in Egypt

Egypt penalizes:

• Late tax filings
  
• Missing insurance
  
• Invalid termination
  

Bolto enables growth without inheriting labour-court and inspection risk.