Payroll Outsourcing in Egypt
Egyptian Pound (EGP)
Arabic & English
Working Days
Saturday to Thursday
Working Hours
48 hours/week
Types of Employment Contracts
Fixed-Term & Open-Ended Contracts
Probation Period
60 days
Payroll Cycle
Monthly
Payroll Tax
0% - 20%
Hire and pay employees across the globe
- Save costs with an expert outsourced HR Team
- Stay competent in the Egyptian business market
- Remain compliant with Egypt’s tax laws and labor regulations
Reliable And Efficient Payroll Outsourcing Provider In Egypt
It is often a hassle for most companies to set up a payroll management structure that is both efficient and cost-effective. Setting up a core HR team and handing over the payroll processing work does not make sense for small and medium-sized companies. Instead, they should focus on allocating resources to build a competent core team that will help them expand further.
At Edge, we take care of your payroll processing in compliance with Egyptian regulations. We help you easily navigate the complex rules surrounding payroll and income taxes.
Why Choose Edge’s Payroll Solution?
We aim to help businesses gain access to the Egyptian market and seamlessly manage their payroll functions. We offer a cost-effective, secure, and flexible option for aspiring businesses to process their payroll as per Egyptian laws.
Minimum Hassle, Maximum Savings
Compared to setting up in-house payroll operations, outsourcing payroll functions can help you save a lot of money and resources. The saved resources can be used to expand your foothold in newer regions and excel at your core offerings. In addition, our team will work as an extension of your core business team to manage payroll processing personalized to your needs.
Legal Matters, Handled With Ease
Our team constantly monitors Egypt’s changing labor laws and payroll incentive regulations. We carefully analyze the guidelines for regulatory compliance and see if your business adheres to them. If not, we will help you with a strategy to help you remain compliant with all legal requirements for expanding your business in the territory.
Flexibility As You Demand
Often, small businesses have a small payroll processing requirement that might involve a lot of seasonal or freelance employees. On the other hand, medium to large companies might have many employees to pay every month. Regardless of your needs, we have a payroll outsourcing solution for you!
Get in touch with our team to discuss the best payroll outsourcing model for your organization.
Data Security Is Our Priority
Are you anxious about compromising the security of your company’s internal data?
Leveraging our state-of-the-art payroll software and other protocols, our technical team ensures the safety of your business data and company records. All the data is safely stored and encrypted on our servers, and we never share any information with any third parties. So, rest assured, your data and privacy are safe in our hands!
Our Payroll Processing Expertise
Payroll as a whole involves several nitty-gritty tasks that should be handled carefully to avoid legal troubles. Furthermore, late payments and errors in payslips can leave your employees frustrated and less productive.
At Edge, our payroll professionals handle your payroll responsibilities as our own. From calculating the salaries accurately to applying deductions, generating monthly reports, transferring payments, and filing tax reports, we do everything payroll-related for your business.
Make Edge Your Payroll Outsourcing Partner In Egypt
By leveraging a strategic approach, we will efficiently run your payroll operations in the background so you can focus on growing your business. We guarantee on-time compensation and accurate deductions every single time. That’s a “win-win situation” for you, your employees, and us!
Everything You Should Know When Outsourcing Payroll In Egypt
Depending on the business size, type, and industry, there are many laws a business has to abide by in Egypt.
Egypt Minimum Salary Requirements
Egyptian employees are entitled to a salary equivalent to at least the minimum wage decided by Federal law.
- The minimum wage in the public sector is 2,700 EGP.
- Employees working in the private sector have a minimum wage limit of 2,400 EGP.
Companies recruiting in Egyptian cities should abide by these basic pay scales according to the sector and business category.
Article 174 Of The Companies Law
According to this law, the aggregate salaries of all foreign employees shouldn’t exceed 20% of the aggregate salaries of all the employees working in the organization. This is to ensure that employment opportunities for the local workforce do not dry up.
Egypt Employment And Work Hour Laws
Compliance laws limit working up to 48 hours a week and eight hours a day for employees in Egypt. In general, Egyptians work 40 hours from Sunday to Thursday. Any form of overtime compensation needs to be drafted and mentioned in the employment contract. It is also important to be aware of trade unions or Collective Bargaining Agreements (CBAs) in your sector, which might change the employment regulations applicable to you.
Employees are entitled to receive a payment equivalent to 135% of their regular salaries for working beyond their standard hours. If they work overtime during night hours, they qualify for compensation accounting for 170% of their regular salary.
Additionally, employees required to work during weekends or public holidays are eligible for overtime pay equivalent to twice their regular salary.
Holidays And Leaves For Employees In Egypt
Egyptian employees are entitled to the following days off:
- Public holidays – The government of Egypt has officially announced 16 public holidays. All businesses, irrespective of their sector, category, etc., must adhere to them.
- Paid leaves – Employees can take 21 paid leaves annually, given they have completed a year in their respective organization. The number of paid leaves increases by seven days if the employee is working under hazardous conditions or if the nature of work involves dangers. The number of paid leaves also increases with increasing age and years of service to the company.
- Sick and maternal leave provisions – Medical certificates are to be provided for sick leaves (up to 6 months, depending on the illness). A female employee can take maternity leave for up to 90 days. They can split these days between pre- and post-delivery. They become eligible for maternity leave after serving in a company for at least 10 months.
Social Insurance In Egypt
The total deductible amount for the employee’s contribution to the private insurance funds, the premiums of life and health insurance, and the insurance premiums for pension entitlement cannot exceed 15% of the net revenue or EGP 10,000, whichever is lower.
In the last few years, the government of Egypt has emphasized strengthening the social security system and is making robust changes to the societal benefits of work. In this direction, the Social Insurance and Pensions Law (Law 148 of 2019) came into force on the first of January 2020. It is a single law that now underlines the accessory payroll requirements for companies in different industries.
The Social Insurance Law prioritizes:
- Pension reform and providing adequate social insurance coverage to workers in the informal economy.
- Implementing the Universal Health Insurance law and reaching universal coverage by 2032.
- Extending social protection to workers across all sectors.
As is evident, getting the employees enrolled in the social insurance scheme and providing them with bank accounts and medical insurance are vital requirements in Egypt.
Our payroll outsourcing services ensure each employee working for your business adheres to all these legal requisites. At Edge, we aim to transform the employment and payroll outsourcing solutions landscape in Egypt.
Tax Regime In Egypt
Egypt follows a progressive model when it comes to acquiring taxes from salaried individuals, institutions, and businesses. Several schemes help employees and businesses stay at par with the prescribed tax slabs and understand their compliance with the regime.
Corporate Taxes In Egypt
In Egypt, companies pay a corporate income tax (CIT) rate of 22.5% on the profits they make after deductions. This rate applies to most businesses, except for oil exploration companies, which are taxed at a higher rate of 40.55%. Additionally, the profits earned by the Suez Canal Authority, the Egyptian Petroleum Authority, and the Central Bank of Egypt are taxed at 40%.
Individual Taxes In Egypt
The tax slabs are based on the earned income of both resident and non-resident employees in Egypt.
Earned income (EGP) | Tax rate on bracket (%) |
From 0 to 21,000 | 0 |
21,000 to 30,000 | 2.5 |
30,000 to 45,000 | 10.0 |
45,000 to 60,000 | 15.0 |
60,000 to 200,000 | 20.0 |
200,000 to 400,000 | 22.5 |
More than 400,000 | 25.0 |
More than 1,200,000 | 27.5 |
It is important to remember that residents and non-residents are exempted from tax collection from their earnings up to EGP 15,000 in this arrangement.
Hire the right way
Let our team handle all of the compliance and payroll on your behalf
Frequently Asked Questions
What is the process of payroll outsourcing in Egypt?
Payroll outsourcing refers to an external service provider handling the payroll processing, adhering to Egypt’s laws and regulations. This process involves calculating salaries, taxes, deductions, and other associated aspects of the payroll.
What is the foreign tax credit rule in Egypt?
According to the Foreign Tax Credit Rule, the tax paid by a resident company to foreign authorities on its overseas profits can be subtracted from the tax owed in Egypt. However, losses suffered abroad cannot be deducted.
How much does payroll outsourcing cost in Egypt?
How much you will be paying to have a third-party provider handle your payroll will depend on the size of your company, the industry, etc. Small businesses with minimal payroll needs will typically be spending less than how much it would take to build an in-house HR team.
Does social insurance come under payroll outsourcing services?
Yes! The payment outsourcing agency is responsible for integrating the company’s employees into the social security system in Egypt (including social insurance). All paperwork in this regard must be fulfilled and conducted by the outsourcing company.