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Egyptian Pound is the official currency of the Egypt. Its currency symbol is EGP or LE.
Estimated at 18.75% of employees salary.
Araabic is the official language.
The population of the Egypt is 114.5 million.
Employees are paid monthly.
To start growing your team in Egypt, you must establish a local entity- including an account with a local bank, a local office and an address registered as a
subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in Egypt presents a range of advantages and challenges. On the positive side, Egypt offers a relatively large and young labour force, with a significant portion of the population being under 30 years old, which can be advantageous for companies seeking dynamic and tech-savvy employees. Additionally, labour costs in Egypt are generally lower compared to many other countries in the region, providing cost efficiencies for businesses. The country also has a growing emphasis on improving its business environment and infrastructure, with various economic reforms aimed at attracting foreign investment.
However, there are challenges to consider. Bureaucratic procedures and regulatory compliance can be complex, often requiring extensive documentation and navigating through a sometimes cumbersome legal system. The labour market may also face issues related to skills mismatch, as educational outcomes may not always align with industry needs. Moreover, there are regional disparities in the availability of skilled labour, with higher concentrations of talent in urban areas like Cairo and Alexandria, potentially making it harder to find qualified candidates in more remote regions. Additionally, employers must be mindful of inflation and currency fluctuations, which can impact both salary expectations and overall cost stability.
Hiring remotely in Egypt offers several compelling advantages for businesses. The cost of living is relatively low, meaning companies can access skilled talent at a fraction of the cost compared to Western regions. Egypt’s strong education system annually produces graduates in fields like engineering, IT, and business, providing a diverse and qualified talent pool. Additionally, many Egyptians are fluent in English and other languages like French and German, which is valuable for international operations. Egypt’s time zone aligns well with European and Middle Eastern markets, facilitating real-time collaboration. With government incentives promoting remote work, hiring in Egypt becomes even more attractive, especially for businesses targeting the MENA region.
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| Social Insurance Contributions: | 14%. |
| Pension Fund: | 12% of gross salary. |
| Health Insurance: | 1% of gross salary. |
| Other Social Insurance: | 1% of gross salary. |
| End of Service Benefits (Annualized): | 3%. |
| Training and Development Costs: | 0.5%. |
| Workplace Safety and Health Compliance: | 0.5%. |
| Administrative Costs: | 0.75%. |
Social Insurance.
End of Service Benefits (Gratuity).
Annual Leave.
Public Holidays.
Marriage Leave.
Funeral Leave.
Usually 3 months.
Emerald Technology can onboard employees in Egypt within 48 hours.
In Egypt, restrictive covenants in employment contracts are subject to specific legal and practical considerations. These covenants include non-compete clauses, non-solicitation clauses, non-disclosure agreements (NDAs), and non-poaching agreements.
1. Non-Compete Clauses
Purpose: Restrict employees from working for or starting a competing business within a certain geographic area and time frame after leaving the company.
Enforceability: Egyptian law requires non-compete clauses to be reasonable. This means the duration of the restriction should typically not exceed two years, and the geographic scope should be limited to areas where the company has a legitimate business interest. The restrictions must be necessary to protect the company’s trade secrets or proprietary information.
2. Non-Solicitation Clauses
Purpose: Prevent employees from soliciting or attempting to solicit the company’s clients, customers, or employees after their employment ends.
Enforceability: These clauses are enforceable if they are reasonable in scope and duration. The restrictions should clearly define the scope of prohibited solicitation and ensure they do not unduly restrict the employee’s ability to work or conduct business.
3. Non-Disclosure Agreements (NDAs)
Purpose: Protect confidential information and trade secrets from being disclosed to third parties.
Enforceability: NDAs are generally enforceable if they are specific about what constitutes confidential information and the obligations of the employee. The agreements must clearly outline the nature of the confidential information and the period during which the confidentiality must be maintained.
4. Non-Poaching Agreements
Purpose: Prevent employees from recruiting or hiring the company’s existing employees for another company or venture.
Enforceability: These agreements must be reasonable in their scope and duration to be enforceable. They should clearly specify whom the employee is restricted from poaching and for how long.
In Egypt, there are both public and private sectors within the healthcare system, providing a variety of options available to residents. The universal healthcare system is funded through the government, employee contributions and general taxation and it aims to provide comprehensive insurance to all citizens by covering numerous health services including preventive, curative and rehabilitative services. It is mandatory for citizens to enroll.
Social Security contributions are managed by the Egyptian Social Insurance Organisation in Egypt, and it covers pension benefits, health insurance, disability benefits and family benefits. Employees contribute approximately 11% of their gross monthly salary while employers contribute around 12% of the employee’s gross salary. It is compulsory for all employees in the formal sector to contribute to the system.
Female employees are entitled to 90 days of paid maternity leave, which includes 45 days before and 45 days after the birth. The leave can be extended under certain conditions if needed.
Male employees are entitled to 3 days of paid paternity leave following the birth of a child.
Employees are entitled to paid sick leave, which generally starts at 75% of the salary for the first 30 days, with the rate potentially decreasing for extended periods. After 180 days of sick leave, the employee may be eligible for additional benefits, depending on the situation.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Employee: Generally, 30 days. |
Employees are generally entitled to any unpaid salary and benefits accrued up to the termination date.
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance End of Service Benefits (Gratuity): | Typically calculated as one-third of the employee’s last salary for each year of service for the first five years, and half for each subsequent year. |
21 days after 1 year of service, increasing to 30 days after 5 years.
There is no fixed national minimum wage, it varies with sector and role.
The standard working week is 48 hours – 6 days of 8 hours. Employees cannot work more than 10 hours per day, and overtime payment must exceed an employee’s original salary amount. Original compensation plus 35 percent more for the day working hours Original compensation plus 70 percent more for the night working hours Double the amount of an employee’s original compensation plus another rest day if the employee works overtime on their scheduled day off.
Monthly.
13th month is common but not mandatory, unless specified in employee contract.
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