The Arab Republic of Egypt is located in the northeastern corner of Africa bordering the Red Sea and the Mediterranean Sea. Its neighboring countries are Libya, the Gaza Strip, and Sudan. Egypt stretches over a million square kilometers, although only about 7.7% of the country is inhabited with the rest being a desert. The population is concentrated in the plains of the Nile Valley and Delta, and the coasts of the Mediterranean and the Red Sea.
The economy is dependent on agriculture, tourism, and cash remittances from Egyptians working in the Gulf countries mainly in Saudi Arabia, and abroad. The country’s largest employers are the government, the garment and textile industries, and tourism.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Egypt.
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Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Egypt
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The Arab Republic of Egypt is located in the northeastern corner of Africa bordering the Red Sea and the Mediterranean Sea. Its neighboring countries are Libya, the Gaza Strip, and Sudan. Egypt stretches over a million square kilometers, although only about 7.7% of the country is inhabited with the rest being a desert. The population is concentrated in the plains of the Nile Valley and Delta, and the coasts of the Mediterranean and the Red Sea.
The economy is dependent on agriculture, tourism, and cash remittances from Egyptians working in the Gulf countries mainly in Saudi Arabia, and abroad. The country’s largest employers are the government, the garment and textile industries, and tourism.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Egypt.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Egypt planning:
The national holidays mentioned below are valid for the year 2026.
The Egyptian Ministry of Labour has announced additional national holidays applicable to Coptic Orthodox employees in Egypt, as listed below:
| January 7 | Coptic Christmas Day | Movable - As per Orthodox Calendar |
| January 25 | Revolution and National Police Day | |
| March 19 - March 23 | Eid Al-Fitr | Movable - As per Islamic Lunar Calendar |
| April 13 | Sham El-Nessim | |
| April 24 | Sinai Liberation Day | |
| May 7 | Labour Day | In lieu of May 1 |
| May 26 | Arafat | Movable - As per Islamic Lunar Calendar |
| May 27 - 29 | Eid Al-Adha | Movable - As per Islamic Lunar Calendar |
| June 16 | Islamic New Year | Movable - As per Islamic Lunar Calendar |
| June 30 | 30th of June Revolution | |
| July 23 | Revolution Day | |
| August 25 | Prophet Muhammad's Birthday | Movable - As per the Islamic Lunar Calendar |
| October 6 | Armed Forces Day |
The approximate time for sharing the contract with an employee in Egypt is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Social security includes provisions for old age, disability, death, work injuries, sickness, and unemployment.
The employer contributes a total of 18.75% to the social security, while the employee contributes 11%, broken down as follows:
| Social Security Scheme | Employer Contributions | Employee Contributions |
| Pension: Old Age, Disability, and Survivor | 12%* | 9%* |
| End of Service Bonus | 1% | 1% |
| Sickness | 3.25% | 1% |
| Work Injuries | 1.5% | – |
| Unemployment | 1% | – |
| Total | 18.75% | 11% |
*NOTE: The pension contribution rates increase by 0.5 percentage points every seven years until the combined employer and employee contribution rates reach 26% by 2055.
The standard working week consists of eight hours a day, over five days (40 hours a week), or over six days (48 hours per week), excluding meal and rest periods.
Employees are entitled to one-day rest after a maximum of six days of work.
An employee must not exceed 10 working hours per day.
Overtime premium is 35% of the normal pay for work performed during daylight, 70% for work performed at night time, and 100% for work performed on days off and holidays.
The probation period is as stated in an employment contract but may not exceed three months and may not be extended.
A worker may not serve more than one probation with the same employer.
The notice period depends on an employee’s uninterrupted length of service with an employer.
| Length of Service | Applicable Notice Period |
| Less than 10 years | 2 months |
| More than 10 years | 3 months |
A worker is required to give a legitimate and adequate cause related to health, social, or economic conditions for terminating the contract. The notice period begins from the date it is received.
The standard working week consists of eight hours a day, over five days (40 hours a week), or over six days (48 hours per week), excluding meal and rest periods.
Employees are entitled to one-day rest after a maximum of six days of work.
An employee must not exceed 10 working hours per day.
Overtime premium is 35% of the normal pay for work performed during daylight, 70% for work performed at night time, and 100% for work performed on days off and holidays.
The probation period is as stated in an employment contract but may not exceed three months and may not be extended.
A worker may not serve more than one probation with the same employer.
The notice period depends on an employee’s uninterrupted length of service with an employer.
| Length of Service | Applicable Notice Period |
| Less than 10 years | 2 months |
| More than 10 years | 3 months |
A worker is required to give a legitimate and adequate cause related to health, social, or economic conditions for terminating the contract. The notice period begins from the date it is received.
Social security includes provisions for old age, disability, death, work injuries, sickness, and unemployment.
The employer contributes a total of 18.75% to the social security, while the employee contributes 11%, broken down as follows:
| Social Security Scheme | Employer Contributions | Employee Contributions |
| Pension: Old Age, Disability, and Survivor | 12%* | 9%* |
| End of Service Bonus | 1% | 1% |
| Sickness | 3.25% | 1% |
| Work Injuries | 1.5% | – |
| Unemployment | 1% | – |
| Total | 18.75% | 11% |
*NOTE: The pension contribution rates increase by 0.5 percentage points every seven years until the combined employer and employee contribution rates reach 26% by 2055.
WorkMotion operates through its own entity in Egypt, which means every step below is handled directly – no third-party intermediaries, no gaps in accountability.
WorkMotion generates an employment contract aligned with Egypt’s Labour Law No. 14 of 2025, which replaced the previous 2003 framework effective September 2025.
Contracts must be in Arabic, with bilingual versions permitted, and must include the employee’s job description, salary, working hours, probation terms, and termination conditions.
WorkMotion produces this documentation automatically, so your new hire receives a legally sound contract without your team drafting a single clause.
Proper registration with the Egyptian Tax Authority and National Organization for Social Insurance is required within 15 days of hiring employees.
WorkMotion handles both registrations on behalf of your new hire – collecting the required documentation, submitting to the relevant authorities, and confirming enrollment before payroll begins.
Missing this window creates legal exposure; WorkMotion ensures it never does.
The EOR runs monthly payroll in local currency, calculates gross-to-net pay, withholds progressive income tax, and produces the required pay slip for each employee.
WorkMotion configures payroll in Egyptian Pounds (EGP) from day one, applying the correct income tax brackets and ensuring that the employee’s net salary accurately reflects all statutory deductions.
The EOR registers every employee with ESIO within the statutory timeframe, calculates:
And, crucially, remits everything by the monthly deadline.
WorkMotion also administers leave entitlements. This includes the four-month maternity leave introduced under the 2025 Labour Law, and any other ancillary employee benefits relevant to the role.
Employers must submit monthly social insurance contributions by the 15th of the following month, annual tax clearance forms for departing employees, and provide required tax documentation.
WorkMotion handles every monthly submission on schedule, including:
Egypt’s employment law landscape is actively evolving.
The 2025 Labour Law introduced a statutory annual salary increment of at least 3% of the social insured salary, and expanded the definition of employment relationships to include:
On top of that, social insurance salary caps will be adjusted by 15% annually through 2027.
WorkMotion monitors these changes and updates employment terms, contribution calculations, and contract conditions automatically – so your team stays compliant without tracking Egyptian regulatory updates in-house.
Using an employer of record in Egypt is not the right fit for every situation – but for most companies making their first hires in the country, the comparison is straightforward.
| WorkMotion EOR | Own Egypt Entity | |
|---|---|---|
| Setup cost | No entity setup cost — per-employee monthly fee only | Estimated EGP 10,000–15,000 in registration fees, plus legal and accounting costs |
| Time to first hire | Days from signed contract to payroll enrollment | Typically 4–6 weeks for entity registration across multiple government bodies |
| Ongoing legal exposure | WorkMotion holds legal employer liability and manages compliance | Your entity carries full legal employer liability under Egyptian labor law |
| Ongoing admin burden | WorkMotion handles payroll, social insurance, tax filings, and compliance monitoring | Internal team or local advisors required for monthly filings, annual reconciliations, and regulatory updates |
| Exit flexibility | Scale down or exit without entity dissolution costs or procedures | Entity wind-down requires formal legal process and can take months |
An EOR in Egypt is well-suited to companies that need to hire one or more employees quickly without committing to the overhead of a permanent legal presence.
If you’re planning to build a large, long-term operation in Egypt with dozens of employees and significant local infrastructure, entity setup may be worth evaluating alongside the EOR model.
Egypt’s employment framework has changed significantly as recently as September 2025.
Foreign employers relying on outdated guidance – or assuming Egyptian labour law mirrors European or US norms – quickly run into compliance problems. Here are the rules that catch teams off guard most often.
Employment contracts in Egypt must be in Arabic, with bilingual versions allowed.
Foreign employers who issue English-only contracts are not in compliance with Egyptian labour law — and those contracts may not be enforceable in a dispute.
WorkMotion generates Arabic-language contracts as standard, with bilingual versions available where needed.
Proper registration with the Egyptian Tax Authority and the National Organization for Social Insurance is required within 15 days of hiring employees.
Many foreign employers treat this as an administrative formality and miss the window. Late registration creates back-contribution liability and potential penalties.
WorkMotion initiates registration in parallel with contract signing, so the deadline is never at risk.
Employees in Egypt are now entitled to an annual bonus of at least 3% of their social insurance wage, payable after one year of service or one year following the last bonus payment.
Foreign employers who treat annual increases as optional risk non-compliance and potential labour court proceedings.
The 2025 Labour Law addresses a loophole that some employers previously exploited by re-hiring the same employee under a new contract to reset the probation clock.
The new law prohibits multiple probation periods with the same employer, limiting the probation term to a maximum of three months once per employee.
Attempting to extend probation through contract restructuring now carries legal risk. WorkMotion’s contracts are structured to comply with this restriction from the outset.
Under Egyptian labour law, employees cannot be terminated without just cause, including offences like professional incompetence, safety violations, and extended absences from work.
The 2025 Labour Law requires termination through judicial decision in certain circumstances. Foreign employers who attempt to terminate employees without following the correct procedural steps face compensation claims and exposure in the labour court.
German, Dutch, and UK-based B2B SaaS companies increasingly hire software engineers, product managers, and data specialists in Egypt to access a large, Arabic- and English-speaking technical workforce.
Egypt’s growing tech sector – concentrated in Cairo and Alexandria – offers mid-level to senior talent at competitive total employment costs.
WorkMotion handles the full employment relationship, from compliant onboarding to monthly payroll in EGP, so the European parent company can focus on the work without having to navigate Egyptian labour law.
E-commerce operators and digital service companies based in Europe or the US hire customer support leads, operations managers, and regional marketing specialists in Egypt to serve customers in the MENA region.
These roles require local market knowledge and Arabic-language capability.
WorkMotion’s employer of record Egypt service lets these companies bring on experienced local hires quickly, with contracts and benefits that reflect Egyptian statutory requirements rather than the employer’s home-country norms.
Companies with 50–300 employees that want to test the Egyptian market — hiring a country manager, a sales lead, or a business development specialist — before committing to entity setup.
For these teams, a six-week incorporation process is not viable when the hire needs to start next month.
WorkMotion’s EOR in Egypt establishes the employment relationship within days, with the option to transition to a direct employment model later if the market warrants a permanent presence.
Egypt’s employment law changed substantially in September 2025 – new labour courts, updated leave entitlements, mandatory annual increments, and stricter termination rules.
Getting these details right from the first hire matters. WorkMotion operates through its own entity in Egypt, which means your new hire’s contract, social insurance registration, and monthly payroll are handled directly. You get the compliance accountability of a locally established employer without the cost or timeline of setting one up yourself.
If you have a candidate in Egypt and need to move quickly, Book a Demo to see how WorkMotion’s employer of record service can help expand your team.
WorkMotion operates through its own entity in Egypt – not through a third-party intermediary.
This means your new hire’s employment contract, social insurance registration, and monthly payroll are handled directly by WorkMotion, with full legal employer accountability sitting with us rather than an unnamed local partner. For HR and legal teams evaluating EOR services in Egypt, this distinction matters. You know exactly who carries the compliance liability.
Typical onboarding through WorkMotion’s employer of record Egypt service takes days from signed contract to payroll enrollment – not the four to six weeks required to register a local entity.
WorkMotion initiates social insurance registration in parallel with contract signing, which is critical given Egypt’s 15-day statutory registration window with the National Organization for Social Insurance and the Egyptian Tax Authority.
Employers hiring in Egypt are required to contribute 18.75% of the employee’s social insurance wage, plus an additional 3.25% for health insurance, bringing the total employer contribution to 22% on top of gross salary.
Employees contribute 11% to pensions and 1% to health insurance. WorkMotion calculates and remits all contributions on the correct schedule, including the monthly deadline of the 15th of the following month, so your finance team never has to track Egyptian regulatory filing dates.
Egypt’s Labour Law No. 14 of 2025, effective September 2025, replaced the previous 2003 framework and introduced several mandatory changes that affect every new hire: maternity leave was expanded to four months, paternity leave was introduced, annual leave entitlements were increased, and a statutory annual salary increment of at least 3% of the social insurance wage became obligatory after one year of service.
Contracts that still reference the 2003 framework are non-compliant. WorkMotion generates contracts aligned with the 2025 law from day one, including all updated entitlements and the Arabic-language requirement.
Termination in Egypt requires documented just cause – including grounds such as professional incompetence, safety violations, or extended unauthorised absence – and the 2025 Labour Law requires judicial involvement in certain termination scenarios.
Foreign employers who attempt to end employment without following the correct procedural steps face compensation claims and labour court exposure.
Yes. Egypt’s 2025 Labor Law explicitly expanded the definition of recognized employment relationships to include remote work, part-time work, flexible work arrangements, and job sharing.
Therefore, these arrangements now carry the same statutory protections as traditional full-time employment.
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