Egypt is a rapidly growing hub in the MENA region, offering a strategic location between Europe, Asia, and Africa, a large, educated workforce, and a favorable cost of living. With strong infrastructure in urban centers like Cairo and Alexandria and a rising tech and service economy, Egypt is becoming an increasingly attractive destination for international hiring.

However, Egypt’s labor laws are highly structured, and employers must comply with specific rules around contracts, benefits, tax withholdings, and termination procedures. Understanding these nuances is key to hiring employees in Egypt successfully and compliantly.

This guide walks you through everything you need to know about hiring in Egypt. from choosing the right employment model to understanding statutory benefits, public holidays, and offboarding. 

Whether you’re testing the Egyptian market or building a long-term team, this guide will help you navigate employment with confidence.

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How to Hire Employees in Egypt

Before hiring in Egypt, you’ll need to choose the right employment model. This will determine your legal exposure, time to hire, and the complexity of compliance. In Egypt, global employers can hire talent in one of the following three ways:

Setting Up a Local Entity

Setting up a legal entity in Egypt allows your company to hire employees directly and build a local presence. This is ideal for organizations with long-term expansion plans or a strategic investment in the region.

However, this route is administrative-heavy. You’ll need to register with the General Authority for Investment and Free Zones (GAFI), open a local bank account, appoint a legal representative, and enroll in Egypt’s social insurance and tax systems. It can take several weeks or months to become fully operational, and local legal counsel is essential to ensure compliance.

Working with an Employer of Record (EOR)

An Employer of Record (EOR) acts as the legal employer on your behalf. They manage employment contracts, payroll, benefits administration, and ensure compliance with Egyptian labor laws, while you retain control over day-to-day tasks and performance management.

This model is ideal for fast, compliant hiring in Egypt without needing to set up a local entity. It’s particularly helpful for companies building remote teams, testing the Egyptian market, or looking for operational agility without legal exposure.

Hiring Independent Contractors

Independent contractors can be a flexible and cost-effective solution for short-term projects or niche roles. Contractors handle their own taxes and social contributions, and employers are not obligated to provide statutory benefits.

That said, Egyptian authorities are vigilant about worker misclassification. If a contractor is working under the control and direction of your team, performing core business functions, or working long-term, they may be reclassified as an employee. This can lead to penalties and retroactive benefit obligations.

With the right contracts and oversight, compliant contractor hiring is possible. At RemotePeople, we help you engage independent contractors safely and legally in Egypt.

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Using an Employer of Record in Egypt

An EOR in Egypt streamlines the hiring process and ensures full compliance with local labor regulations. The EOR becomes the legal employer on record, managing administrative and legal responsibilities while you focus on your business goals.

Diagram illustrating the responsibilities of an Employer of Record (EOR) in Egypt
Simplify global expansion with an Egypt Employer of Record (EOR)

In Egypt, an EOR typically handles:

  • Employment Contracts: The EOR drafts compliant, bilingual (Arabic and English) employment contracts in accordance with Egypt’s Labor Law No. 12 of 2003. These contracts outline working hours, job descriptions, salaries, benefits, probation terms, and termination clauses.
  • Payroll and Salary Payments: Egyptian payroll must follow local standards regarding net vs. gross salary structures, mandatory deductions, and salary timelines. The EOR ensures accurate payroll in Egyptian Pounds (EGP), issues payslips, and handles local remittances, including tax and social insurance contributions.
  • Tax and Social Security Compliance: The EOR withholds and remits income tax (up to 25% depending on income brackets) and employer/employee social insurance contributions. This includes contributions to pension, unemployment, and medical insurance schemes, as mandated by law.
  • Benefits Administration: The EOR manages all statutory employee benefits, including social insurance registration, medical coverage, and annual bonuses if applicable. They can also help offer additional benefits like supplemental health insurance, internet stipends, or education allowances based on competitive benchmarks.
  • Onboarding and Documentation: From identity verification to registration with Egypt’s Social Insurance Authority and Tax Authority, the EOR handles all necessary onboarding paperwork. This ensures the employee is fully compliant from day one.
  • Offboarding and Terminations: When an employment relationship ends, the EOR handles notice calculations, severance pay, documentation, and deregistration from relevant authorities. This minimizes legal risks and ensures proper recordkeeping under Egyptian law.

Time Off and Leave in Egypt

Mandatory Leave Entitlement

Employees who have completed one year of continuous service with the same employer are entitled to a minimum of 21 working days of paid annual leave per year. This leave entitlement increases to 30 working days for employees who have completed more than 10 years of service or who are aged 50 or above. Annual leave is calculated based on working days, typically excluding Fridays and official holidays.

During the first year of employment, leave is generally prorated based on the number of months worked. For example, an employee who has worked for six months would be entitled to roughly half of the annual leave entitlement. Employers may also offer additional leave days as part of competitive benefit packages, especially in multinational companies or sectors with talent shortages, such as technology, finance, and oil and gas.

It is common practice for annual leave to be scheduled in coordination with the employer to ensure business continuity. Employees should provide reasonable notice when planning their leave, and employers cannot unreasonably deny requests, especially for statutory leave entitlements.

Public Holidays

Egypt observes a mixture of fixed-date and lunar-based public holidays, typically ranging between 12 to 14 days per year. The number and exact dates can fluctuate annually, especially for Islamic holidays, which follow the lunar calendar and shift approximately 10 days earlier each Gregorian year.

Key public holidays include:

  • New Year’s Day (January 1)
  • Sinai Liberation Day (April 25)
  • Labor Day (May 1)
  • Eid al-Fitr (End of Ramadan; date varies)
  • Revolution Day (June 30)
  • Eid al-Adha (Date varies)
  • Islamic New Year (Date varies)
  • Armed Forces Day (October 6)
  • Prophet Muhammad’s Birthday (Date varies)
  • Coptic Christmas (January 7)

Employees are entitled to take these days off with full pay. If an employee is required to work on a public holiday, they must be compensated either with additional pay typically at an overtime rate or time off in lieu. Overtime pay rates may be specified in employment contracts, collective agreements, or company policies, but Egyptian labor law generally favors higher compensation for work on official holidays.

Sick Leave

Egyptian labor law grants employees up to 180 days of sick leave per calendar year, subject to certification by a licensed medical practitioner recognized by the Social Insurance Authority. Sick leave is paid as follows:

PeriodWage Payment
First 90 daysEmployer must pay 75% of the employee’s regular wage
Remaining 90 daysEmployer must pay 85% of the employee’s regular wage

Employers may recover some or all of these payments from the Social Insurance Authority, provided they submit the appropriate medical certificates and documentation on time. Sick leave beyond 180 days may lead to disability claims or other social insurance benefits, depending on the severity and nature of the illness.

Employees are required to notify their employer promptly of any illness and provide medical documentation. Failure to provide valid medical proof can lead to the denial of sick pay or disciplinary action.

Parental and Family Leave

Maternity Leave

Female employees in Egypt are entitled to 90 days of paid maternity leave. By law, this leave must include at least 45 days following childbirth to allow for recovery and bonding with the newborn. To qualify, the employee must have been continuously employed by the same employer for at least 10 months prior to childbirth.

During maternity leave, the employee receives her full salary. Employers are legally prohibited from terminating the employment of women during pregnancy or maternity leave, offering strong job protection. Additionally, Egyptian labor law requires employers with 100 or more female employees to provide either an on-site childcare facility or childcare subsidies to support working mothers.

Some employers voluntarily provide enhanced maternity benefits, including extended unpaid leave or flexible working arrangements post-maternity leave, to promote retention and support work-life balance.

Paternity Leave

While Egyptian labor law does not currently mandate statutory paternity leave, many employers voluntarily offer between 3 to 5 days of paid paternity leave as part of company policies or under collective bargaining agreements. This leave allows new fathers or co-parents time to support the mother and bond with their child.

The growing recognition of paternal involvement is influencing companies to consider more family-friendly policies. Some multinational corporations have introduced enhanced parental leave policies exceeding the statutory requirements to attract and retain talent.

Other Types of Leave

  • Marriage Leave: Marriage leave is not mandated by Egyptian labor law. However, many employers grant 1 to 3 days of paid leave for employees getting married as a goodwill gesture or part of their benefits package. This leave is usually requested in advance and approved at the employer’s discretion.
  • Bereavement Leave: Bereavement or compassionate leave is also not explicitly stipulated in the law but is commonly provided by employers. The duration typically ranges from 1 to 5 days, depending on the employee’s relationship with the deceased. Some employers may extend leave for close family members, such as parents, spouses, or children.
  • Unpaid Leave: Employees may request unpaid leave for personal reasons such as further education, caregiving responsibilities, or extended travel. Approval is discretionary and dependent on operational needs. Extended unpaid leave is less common but can be an important retention tool in competitive industries.

Employers often enhance these leave types with additional days or flexibility to improve employee satisfaction, particularly in sectors where retaining skilled workers is critical.

Terminations and Severance in Egypt

Severance Pay

Severance is required only if the employee is dismissed without cause. In such cases, employees may be awarded two months’ gross salary for each year of service, as determined by labor courts.

Employees who resign or are terminated for cause are not automatically entitled to severance unless otherwise specified in their employment contract.

Expand into Egypt Easily with Remote People’s Employer of Record in Egypt

Egypt offers access to a large, skilled, and multilingual workforce, particularly in tech, finance, customer support, and engineering. Its strategic geographic location and cost-effective labor market make it an excellent destination for global hiring.

However, hiring in Egypt comes with strict labor compliance requirements, especially around employment contracts, payroll, benefits, and terminations. An Employer of Record (EOR) makes it easy to hire local talent quickly, compliantly, and without opening a local entity.

If you’re ready to hire in Egypt, RemotePeople can help. Our Employer of Record services handle everything from onboarding to payroll to offboarding, so you can focus on growing your team with confidence.

Get in touch with RemotePeople today to learn how we can support your expansion into Egypt and other global markets.