Global PEO Services (GPS) helps companies hire employees in Egypt without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Egypt, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Egypt labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Egypt. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Egypt - Country Overview
The economy of Egypt is driven by petroleum products, tourism, natural gas, media, and agriculture. The country has developed a robust energy market based on natural gas, coal, and hydro power. Since 2000, the introduction of structural reforms including fiscal policies, taxation, new business legislations, and privatization have helped Egypt become a market-oriented economy and attract increased foreign investments. GDP growth is likely to average 3.5% during 2017-30, with labor productivity growth being a major contributor.
Alexandria, Giza, Port Said, Suez
Employment Contracts in Egypt
Employment contracts must be in writing and a copy must be given to employees, the employer, and the concerned labor office. The contracts must be in Arabic though bilingual contracts in both English and Arabic are allowed. The contracts in Arabic prevail in case of a dispute or conflict.
Employment contracts must contain the following data:
- Name of the employer and address of the workplace
- The employee’s name, qualifications, social insurance number, and other identifying information
- Job description
- Wages and benefits that have been agreed upon
- Method and time of payment
Probationary periods must not exceed 3 months. Employees cannot be asked to work under probation for more than once with the same employer.
Working Hours in Egypt
The Labor Law limits the work schedule to 8 hours per day and 48 hours in a week. Employees cannot be asked to work for more than 5 hours continuously and must be given a one-hour rest break during a day. Employees are also entitled to a 24-hour rest period after 6 working days.
Employees who work in excess of 8 hours in a day are paid at 35% premium over their regular pay for overtime during daylight hours while those who work overtime at night receive 70% premium over their regular pay. Employees cannot be asked to work overtime for more than 2 hours in a day. Employees who work on weekends receive twice their regular pay and get an additional day off. Even those who work during vacations also receive twice the regular pay.
Employee Leave in Egypt
The following national holidays are observed in Egypt:
- Islamic New Year
- Birthday of Prophet Mohammed
- Eid al Fitr (2 days)
- Eid al Adha (3 days)
- Eastern Christmas
- Revolution Day
- Sham El Nessim
- Sinai Liberation Day
- Labor Day
- Revolution Day
- Armed Forces Day
Employees can be requested to work on a national holiday if it is necessary and are provided twice their normal pay.
Employees with at least 1 year of continuous service receive 21 days of paid annual leave. The annual leave increases to 30 days for those who have worked for more than 10 years continuously or have reached the age of 50. The employer decides the dates for vacation based on the business requirements.
Pregnant employees who have worked for a minimum of 10 months are entitled to 90 days of maternity leave. Maternity leave is given only twice to working mothers during their service with an employer. They can’t be asked to work during the 45 days after childbirth and are also entitled to unpaid maternity leave not exceeding 2 years to care for their child.
The Labor Law of Egypt does not have provisions for paternity leave.
Employees with a medical certificate confirming their sickness are entitled to paid sick leave equal to 75% of their social insurance wage for 90 days, after which it is paid at 85%. Sick leave cannot exceed 180 days. Employees can use their annual leave for sick leave and can also convert their unused sick leave into annual leave.
Employees are entitled to 1 month of paid leave to visit Jerusalem or to perform the Hajj pilgrimage after 5 years of continuous service. This leave is given only once.
Employee Benefits in Egypt
Pensions and Social Security
Egyptian employees receive old age, pension, and survivor benefits under the Social Insurance Law. Foreign workers, except those whose countries have entered into treaties with Egypt for social insurance coverage, are not required to make social insurance contributions.
Employees who suffer an injury or contract an illness when at work and that prevents them from working satisfactorily receive full compensation during their absence from the Social Solidarity Ministry. Employees who wish to re-join work after an injury/illness are examined by a committee formed by the ministry. The committee decides whether the individual can be reassigned and checks if same/similar vacant positions are available.