Table of content
Building a remote team?
Hiring remotely in Egypt can be a game changer for your business. You get access to a diverse talent marketplace, potentially lower operational costs, and the flexibility to scale up or down as needed. However, managing a remote team across borders can be tricky. Different time zones, cultures, and especially the local labor laws and regulations can be tough to navigate. That's where EOR services become your best solution.
Employer of Record in Egypt
An Employer of Record in Egypt can be a lifesaver for businesses looking to expand there. They act as your local partner, taking care of all the legal and HR aspects of employing staff in Egypt. This means they handle everything from employment contracts to payroll, taxes, and compliance with local labor laws. Essentially, they're your back office in Egypt, so you can focus on running your business without sweating the small stuff.
Egypt at a glance
Before we delve deeper into the nuances of Employer of Record services, let's take a quick look at what Egypt offers in the business landscape. With its rich history, vibrant culture, and strategic location, Egypt has emerged as an enticing destination for businesses looking to expand their global footprint.
Capital: Cairo
Population: Over 104 million (2023 estimate)
Currency: Egyptian Pound (E£)
Language: Arabic (Official), English, and French are widely understood in business circles
GDP: Approximately USD 400 billion (2023 estimate)
One platform to grow your global team
Our EOR services in Egypt offer a single platform to manage and grow your global team efficiently. With their expertise, you can easily navigate the complexities of hiring and managing employees in Egypt. They ensure that your business stays compliant with local laws and regulations, minimizing risks and letting you focus on what you do best - growing your business. Whether you're looking to hire a small remote team or establish a larger presence in Egypt, our EOR services provide the support you need to make it happen.
Gegidze is your perfect partner when you're ready to take your tech business to the next level and expand your team globally. We're all about making things easier for you with our top-notch staff augmentation, employer-of-record services, and the latest digital solutions. Whether you're a startup or a mid-size business, we've got a whole toolbox of services. We're talking payroll management, hiring freelance pros, and putting together killer development teams just for you.
We're totally committed to top-notch quality in every bit of team-building. Looking to hire remote developers? Need dedicated web designers or ace PHP programmers? Gegidze is your one-stop shop
Employment in Egypt
Location Advantage - Egypt is in a great spot between Africa and the Middle East. This makes it an important place for trade and business. Being close to big markets and shipping routes is a plus for companies that want to grow globally.
Rich Culture - the country has a lot of history and cool things like the Pyramids of Giza and the Nile River. The way people work is also influenced by this rich history. Building good relationships and working hard are seen as important.
Economic Changes - recently, Egypt has made some big changes to help businesses. They've made things simpler, attracted foreign investments, and supported new businesses.
Tech Growth - Egypt's technology sector is growing fast. It's becoming a hub for IT and software development. The young and tech-savvy workforce there is a big plus for businesses looking for skilled professionals in tech.
Language Mix - Arabic is the main language, but English and French are also used in business. This mix makes it easy for international collaborations. Egypt is open to businesses from different language backgrounds.
Currency stability - the Egyptian Pound (E£) is the official currency, and the country has maintained a relatively stable currency environment. This stability provides a favorable economic climate for businesses operating in or expanding into Egypt.
The minimum wage in Egypt
The current minimum wage in Egypt is EGP 3,500.00 per month in 2024. It became valid on January 1, 2024. This amount reflects the minimum compensation mandated by the government to ensure fair pay for employees in various sectors. Employers are required to adhere to this minimum wage to promote equitable employment practices and uphold the welfare of the workforce.
Working hours
As per the Labor Law, the maximum working hours are 8 per day or 48 per week for a six-day workweek. Flexibility exists for occasional additional hours due to specific requirements, allowing companies to meet demands effectively.
Overtime compensation
Obtaining explicit consent is crucial, and total daily working hours should not exceed 10, according to Article 85 of the Labor Law. This implies the employee is only eligible for two hours of extra compensation in most cases. The Labor Law establishes minimum overtime compensation rates and distinguishes between daytime and nighttime overtime pay.
Annual leave
Employees are entitled to a minimum of 21 days of paid annual leave after one year of service. Extended leave allowances apply for those with ten years of service or aged 50 and above.
Paid official holidays in Egypt
Employees are entitled to the following holidays in Egypt.
Date | Day | Name |
7 Jan | Sunday | Coptic Christmas Day |
25 Jan | Thursday | Revolution Day January 25 |
10 Apr | Wednesday | Eid el Fitr (Tentative Date) |
11 Apr | Thursday | Eid el Fitr Holiday (Tentative Date) |
12 Apr | Friday | Eid el Fitr Holiday (Tentative Date) |
25 Apr | Thursday | Sinai Liberation Day |
1 May | Wednesday | Labor Day |
6 May | Monday | Spring Festival |
16 Jun | Sunday | Arafat Day (Tentative Date) |
17 Jun | Monday | Eid al-Adha (Tentative Date) |
18 Jun | Tuesday | Eid al-Adha Holiday (Tentative Date) |
19 Jun | Wednesday | Eid al-Adha Holiday (Tentative Date) |
30 Jun | Sunday | June 30 Revolution |
4 Jul | Thursday | Day off for June 30 Revolution |
8 Jul | Monday | Muharram (Tentative Date) |
23 Jul | Tuesday | Revolution Day July 23 |
25 Jul | Thursday | Day off for Revolution Day July 23 |
16 Sep | Monday | Prophet Mohamed's Birthday (Tentative Date) |
6 Oct | Sunday | Armed Forces Day |
10 Oct | Thursday | Day off for Armed Forces Day |
Medical/sick leave
Sick leave entitlements are granted based on medical authority reports, with compensation rates at 75% for the first 90 days and 85% for the subsequent 90 days.
Maternity leave
Female employees are entitled to 90 days of fully paid maternity leave, with nursing breaks available for up to 24 months after childbirth.
Special leaves
Additional special leaves, including study leave, pilgrimage leave for employees with five years of service, and casual leave, contribute to a comprehensive employee support system.
Employee health benefits in Egypt
Private companies in Egypt must provide health insurance, ensuring coverage for old age, illness, death, disability, and unemployment. Employers and employees contribute to social insurance, guaranteeing a comprehensive health benefit.
Employees' data protection rights
Egyptian labor laws safeguard employees' data protection rights, emphasizing the responsible handling and confidentiality of personal information.
Employees' anti-discrimination rights
Article 35 of the Labor Law prohibits workplace discrimination based on gender, ethnicity, language, religion, or beliefs. Legal bodies, including the Ministry of Manpower and Immigration, ensure the enforcement of anti-discrimination rights.
Employee Entitlements in Egypt
Labor Protections in Egypt
Before engaging workers in Egypt, it's crucial to comprehend local labor laws for full compliance and to evade potential penalties. The Egyptian Labor Law of 2003 provides robust labor protections, ensuring:
Mandated Raises: A minimum of 7% per year.
Equal Opportunity: Protections to prevent discrimination based on sex, origin, language, religion, or creed.
Prohibition on Discrimination: Employers cannot discriminate in hiring based on various factors.
Minimum Wage: Guaranteed, even for workers on commission or output.
Vacation Entitlement: Every worker has the right to 21 days of vacation per year.
Workday and Work Week Limits: A maximum of 8 hours per day and 48 hours per week.
Breaks: A one-hour break for workdays lasting five hours or more.
Compensation for Termination: If an employee is terminated without legitimate justification, compensation is required.
Termination of Contract: Open-ended contracts can be terminated by either party with notice, varying based on the duration of employment.
Statutory and common Egypt benefits
Egypt's labor laws mandate certain benefits for full-time employees, including:
Minimum Wage and Overtime: Ensuring fair pay and compensation for additional hours worked.
Leave Allowances: Providing annual leave based on the duration of employment.
Health Insurance and Social Security: Mandatory for private companies, covering old age, illness, death, disability, and unemployment.
Maternity Leave: Offering paid maternity leave as a statutory benefit.
Disability Insurance: Providing benefits in case of work-related injuries or disabilities.
Unemployment Compensation: Offering financial support for involuntary unemployment.
Termination Rules: Outlining rules for termination, including notice periods and severance pay.
Contractors vs. Full-time Employees
Temporary Work Contract
Temporary work contracts in Egypt provide a flexible arrangement for a specific duration. They are suitable for short-term projects or seasonal work. Renewal terms and conditions are typically outlined in the contract.
Full-time Employment Contract/Indefinite Contract
Full-time employment contracts, also known as indefinite contracts, establish a long-term relationship between the employer and employee. They lack a specific expiration date and can only be terminated with adequate cause, requiring written notice.
Part-time Employment Contract
Part-time employment contracts are designed for individuals working fewer hours than full-time employees. They offer flexibility but still provide certain labor rights and benefits based on the part-time employee's working hours.
On-call Job and Project-based Employment
On-call and project-based employment involves hiring individuals as needed for specific tasks or projects. It offers flexibility but may not guarantee regular working hours.
Aspect | Independent Contractors | Employees |
Legal Status | Considered separate entities | Formally employed by the company |
Flexibility | Typically have more flexible working arrangements | Generally subject to set working hours and location |
Taxation | Responsible for their own taxes | Employer is responsible for withholding and paying employee taxes |
Benefits | Typically do not receive company benefits | Eligible for company benefits like health insurance, leave, and more |
Labor Rights | Not entitled to labor rights like overtime pay, paid leave, and other protections | Protected by labor laws, entitled to various rights and benefits |
Termination Process | Can be terminated more easily based on contract terms | Termination often requires adherence to labor laws and may involve severance |
Legal Risks | Less legal risk for the employer in terms of labor disputes | Employers may face legal challenges if labor laws are not followed |
Administrative Responsibilities | Contractors handle their own administrative tasks | Employers manage HR tasks, payroll, and compliance |
Cost Control | Provides cost control and may be more cost-effective | Costs may be higher due to benefits and compliance requirements |
Compliance | Lower compliance and reporting requirements | Higher compliance responsibilities for the employer |
Relationship Nature | Typically more transactional and project-based | Ongoing, long-term relationship with the company |
Hiring in Egypt
Egypt's growing tech talent pool makes it an ideal place to hire remote developers. Whether you're looking for a dedicated PHP developer or a dedicated iOS developer, the job market can meet any needs.
Employment Agreement in Egypt
First things first, when you've found the right person for your team, you'll need an employment contract. In Egypt, this isn't just a formality. You need to write the contract in Arabic, make three copies (one for you, one for your employee, and one for the social insurance office), and ensure it's clear and detailed.
Job Portals in Egypt
Whether you want to hire remote dedicated PHP programmers, dedicated web designers, or a marketing team in Egypt, these platforms will help you
Probation & Termination
Probation Period
In Egypt, the probation period is like a brief trial run, lasting no more than 3 months. During this time, both the employer and the employee have the opportunity to assess if the employment arrangement is a good fit. It's a one-time deal for each hire, so it's important to make this period count.
Termination of Service
When it comes to ending employment in Egypt, the law requires fairness and adherence to specific procedures. Whether it's due to contract expiry or other reasons, employers must follow the legal guidelines. This might involve providing notice or severance pay, depending on the circumstances.
It's crucial to handle termination processes with a focus on equality and justice. Egyptian law mandates non-discrimination and equal treatment during termination, ensuring that all procedures are justifiable and transparent.
Visa Solutions in Egypt
Understanding Egypt's visa system is crucial for seamless business operations and travel.
Short-Term Visa
Ideal for brief visits, including business trips or short-term projects.
Egypt Tourism Visa
Designed for leisure travel, allowing travelers to explore Egypt's rich cultural heritage.
Egypt Education Visa
Tailored for students and academics pursuing education or research in Egypt.
Egypt Work Visa
Essential for expatriates and professionals employed in Egypt.
Egypt Transit Visa
Necessary for certain nationalities transiting through Egypt.
Other Visas
Catering to a range of specific travel needs, including business and diplomatic purposes.
Work Permits in Egypt
Permanent Work Permit in Egypt
For those planning to settle and work in Egypt long-term, the Permanent Work Permit is essential. It's typically granted to individuals who have already established a connection with Egypt, either through previous employment or family ties. Obtaining this permit is a significant step towards permanent residency and possibly citizenship.
Temporary Work Permit in Egypt
The Temporary Work Permit is designed for short-term employment in Egypt. It's ideal for specific projects, contractual work, or seasonal jobs. The duration and conditions of this permit are determined by the nature of the employment and the regulations set by Egyptian authorities.
Independent Work Permit in Egypt
For freelancers, entrepreneurs, or self-employed individuals, the Independent Work Permit offers flexibility and independence. Applicants need to demonstrate financial stability, a viable business plan, or unique skills that are in demand in Egypt.
Turquoise Cards in Egypt
The search did not yield specific information about "Turquoise Cards" in relation to Egyptian work permits. This term may refer to a unique category of work permits, but for accurate and detailed information, consulting with the Egyptian immigration authorities or legal experts is recommended.
EOR Solution in Egypt
Egypt, with its strategic location and growing economy, is a hot spot for businesses looking to grow. But, let's face it, navigating the legal and HR complexities in a new country can be a headache. This is where our best Employer of Record services come in. They offer a seamless way to hire and manage staff in Egypt without the hassle of setting up a legal entity.
For businesses not based in Egypt, using an Employer of Record (EOR) can simplify this process. An EOR essentially becomes the legal employer, handling contracts, compliance, and even payroll. This is especially useful if you're looking to hire remote developers or other specialists without establishing a legal entity in Egypt.
EOR vs. Traditional Employment: What's the Difference?
Traditional employment often involves setting up a legal entity in a new country, which can be time-consuming and costly. EOR solutions, on the other hand, let you bypass this step. They act as the legal employer for your staff in Egypt, handling everything from payroll to compliance. It's like having a local HR department but without the overheads.
Payroll in Egypt
Navigating payroll in Egypt can be a complex task, especially for businesses expanding globally. Gegidze, as your Employer of Record (EOR) in Egypt, simplifies this process, ensuring compliance with local labor laws for timely and accurate payments. This service is particularly beneficial for companies aiming to hire remote developers or engage in outstaffing.
Payroll Process in Egypt
The process encompasses pre-payroll preparation, accurate payroll calculations, and post-payroll activities. For businesses under an employer of record service like Gegidze, these steps are streamlined to align with Egyptian regulations.
Setting Up the Organization: Essential for businesses, especially those involved in startup MVP development or operating as a staff augmentation agency.
Leave Policy: Understanding local leave policies is crucial, especially for companies that hire a dedicated team or manage an in-house team.
Salary Components: Compliance with Egypt's minimum wage requirements is vital, particularly for businesses that hire dedicated developers or hire remote sales teams.
Taxes in Egypt
Personal Income Tax
Let's break down the tax rates so they're easy to get:
If you earn up to 21,000 EGP, guess what? You're in luck – no tax for you.
Earn between 21,000 and 30,000 EGP? You're looking at a tax rate of 2.5%.
For those making between 30,000 and 45,000 EGP, the rate bumps up to 10%.
Earning between 45,000 and 60,000 EGP? Your tax rate is 15%.
If you're in the 60,000 to 200,000 EGP range, it's a 20% tax rate.
Making between 200,000 and 400,000 EGP? You're taxed at 22.5%.
Over 400,000 EGP? Your rate is 25%.
And for the high rollers earning more than 1,200,000 EGP, the tax rate hits 27.5%.
Here's a little bonus info: both residents and non-residents get a break on the first 15,000 EGP they earn – it's tax-free.
Social Security Contributions
Employees contribute 11% of their total social insurance salary towards their contributions.
Both employers and employees have specific contribution requirements. Companies providing HR staffing services or those looking to hire freelance workers need to be aware of these obligations.
Corporate Tax
Understanding the corporate tax rate of 22.5% is crucial for businesses operating in Egypt, including those in the employer of record Europe and employer of record Caucasus regions.
Value-added Tax (VAT)
The standard VAT rate is 14% in Egypt, and the standard rate for value-added tax (VAT) is set at 14%. This tax applies to a wide range of taxable supplies, although there are notable exceptions. For instance, services like banking, as well as medicines and healthcare services, are exempt from VAT in Egypt.
Inheritance Tax and Gift Tax
In Egypt, when it comes to inheritance tax on property, there's none. That's right, if you inherit a property, you don't have to worry about paying any inheritance tax. But, there's a catch. If the property is passed on to more than one person, each person has to pay property tax on their share. It's like splitting the bill – everyone pays their part.
If you're thinking of gifting a property in Egypt, here's some good news: there's no gift tax. So, you can go ahead and gift a property without fretting about extra taxes.
Financial Year
Understanding the financial year in Egypt is crucial for all businesses, including those offering outsourcing vs outstaffing services and those looking to hire dedicated iOS developers or hire dedicated Android developers.
Partnering with an employer of record service like Gegidze eases the burden of managing payroll and taxes in Egypt, allowing businesses to focus on growth and development. Whether you're a top IT staff augmentation agency or a startup, understanding these aspects is key to successful operation in Egypt.
Understanding Outsourcing and Outstaffing in Egypt
When it comes to building a team in Egypt, you've got options: outsourcing and outstaffing. Both have their perks, but it's crucial to understand the difference.
Outsourcing vs. Outstaffing: Choosing What's Best for Your Business
Outsourcing means you hand over a part of your business processes to a third-party company. It's like saying, "You're the expert, you handle this." Outstaffing, however, is more like renting a team. You're still in charge, but the staff technically belongs to another company. For businesses not ready to dive into the complexities of Egyptian employment laws, these options can be a lifesaver.
The Role of Staff Augmentation Agencies
Top IT Staff Augmentation Agency and Staff Augmentation Agency play a crucial role in bridging the gap between businesses and specialized talent, such as Dedicated PHP Developers or Dedicated Web Designers.
Hiring Remote Teams in Egypt with Gegidze
The rise of digital technology has enabled businesses to Hire Remote Teams or Remote Development Teams with ease, a boon for tech companies seeking to leverage Egypt's growing tech talent pool.
Advantages of Remote Teams
Hiring a Dedicated Development Team in Egypt offers access to diverse talent, cost efficiency, and scalability, coupled with the flexibility of remote work arrangements.
Tech Expertise
In the fast-paced, technology-centric world, finding the right tech talent is more crucial than ever. Need someone to consult on your project? You can hire freelancers. Or maybe you need a whole team to work from somewhere else? We've got you sorted. For just 199€ a month, you can hire remote employees.
Imagine a one-click solution for all your tech recruitment needs – that's what we offer!
Incorporation: How to Set Up a Subsidiary in Egypt
Registration
Trade name clearance
Authorization certificate from Bank
Submitting documents
Notarizing the company contract
Get the chamber of commerce certificate
Notifying incorporation
Payroll Outsourcing through an Employer of Record in Egypt
At Gegidze, we're revolutionizing business expansion in Egypt with our Employer of Record (EOR) services. We understand the challenges of entering a new market, so we've tailored our services to make your expansion journey smooth and compliant with local laws.
Simplifying Expansion: We handle the complexities of legal compliance, payroll, and HR in Egypt, allowing you to focus on growing your business.
Payroll Outsourcing: Our team ensures your payroll is managed efficiently and in compliance with Egyptian laws, guaranteeing timely and correct payments.
HR Staffing Services: We help you find and onboard top local talent, providing ongoing support to ensure your team's success.
IT Staff Augmentation: Need tech talent? We connect you with skilled professionals like dedicated PHP developers and web designers, offering flexibility to scale your team as needed.
Remote Team Management: In today's digital world, we help you build and manage a remote team in Egypt, ensuring seamless collaboration and productivity.
With Gegidze, expanding your business into Egypt is hassle-free. We take care of the legal and administrative details, so you can concentrate on what you do best – growing your business. Welcome to streamlined, stress-free business expansion with Gegidze.