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.
Currency: Egyptian Pound
Principal language: Arabic
Government: Semi-presidential System
Capital City: Cairo
Major Cities: Alexandria, Giza, Port Said, Suez
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.
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.
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.
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.
How GPS can Help
With our Global PEO/Employer of Record services, companies can expand into Egypt and hire their employees without having to establish a branch office or subsidiary in Egypt.
- Your candidate is hired via our Egypt PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
- Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll - all in full compliance with Egypt laws.
- Global PEO Services experts manage all day-to-day operational issues such as employee expenses, and severance/termination if required.
- With no contractor risks, pass on the compliance burden to Global PEO Services.
Spin Off/M&A Support
- Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.
24/7 Support in 100+ Countries
- Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
- We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.
Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.
Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.