Payroll
/
Egypt
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
EGP £ (Egyptian Pound)
Employer contributions
~26% employer NOSI (18.75% pension + 3% sickness + 2% work injury + others)
Minimum wage
EGP 6,000/month (2026, increased Jan 2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Cairo
Timezone
EET (GMT+2)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~EGP 25,200 total
/month
For a gross salary of
EGP 20,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~26% employer NOSI (18.75% pension + 3% sickness + 2% work injury + others)
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - NOSI by 15th - ETA withholding - annual return March
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
+
Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~EGP 25,200 total
Example gross salary
EGP 20,000 gross/month
~EGP 13,200 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~EGP 5,200 employer NOSI
Employer contributions on that salary
Employer contributions
~26% employer NOSI (18.75% pension + 3% sickness + 2% work injury + others)
Employee contributions
~14% employee NOSI
Total cost above gross
~26% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~EGP 10,000
Per month
Cairo
EGP 15,000 - 40,000
~40%
Alexandria
EGP 12,000 - 30,000
~15%
Monthly gross. National average salary per year:
~EGP 120,000
Minimum wage
EGP 6,000/month (2026, increased Jan 2026)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary; profit-sharing bonus mandated in some sectors
End of year
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to EGP 40,000 / 10% / 15% / 20% / 22.5% / 25%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 15th
Social security payments
March 31 (annual income tax return)
Income tax
End of January
Employee tax certificate
Annual Tax Certificate (Form 41)
March 31
Annual return
Annual Income Tax Return
Late payment penalties
Late NOSI: 1% monthly + 2% penalty; late income tax: 1.5% monthly
Who collects what
Egyptian Tax Authority (ETA)
Income tax
NOSI
Social insurance
Ministry of Manpower
Labor law and inspection
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
21 days (under 10 yrs) / 30 days (over 10 yrs or over 50 yrs of age)
Public holidays
~15 public holidays
Sick leave
Sick Leave
75-85% from NOSI from day 1 (hospital case) or day 4 (non-hospital)
Maternity leave
13 weeks (90 days) maternity
Full pay from employer; NOSI reimburses up to 3 times
The contracts you can use, and what ending an employment relationship costs.
Permanent
Aqd Amal Ghair Mohadad Al-Modda (Permanent)
Fixed term
Aqd Amal Mohadad Al-Modda (Fixed Term)
Independent contractor
Aqd Mostaqel
Collective agreements
No general CBA (public sector has wage scales)
Ending employment
End-of-Service Pension / Indemnity
How it is calculated
Via NOSI pension system; private sector: per Labor Law Article 120
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
NOSI Base Underreporting (Shadow Wages)
Risk Level: HIGH
Egyptian employers commonly declare the minimum wage on NOSI forms while paying actual market salaries off-book. NOSI auditors cross-reference bank transfers and court payroll records. Retroactive contributions plus 1% monthly penalty can exceed the original contribution amount over several years.
Form 4 Annual Profit-Sharing Non-Compliance
Risk Level: MEDIUM
Egyptian Labour Law Article 41 requires companies with more than 50 employees to distribute a portion of annual profits to workers. Many international employers are unaware this applies to Egyptian subsidiaries. The Ministry of Manpower conducts audits and can impose fines for non-distribution.
1 of 6
Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
+
Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
+
Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
+
Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
+
Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
+
Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
+
When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
+
Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.