Best Employer of Record in Egypt

Payroll runs monthly. The employer withholds salary income tax at progressive rates that climb by bracket to 27.5 percent at the top band, remits it to the Egyptian Tax Authority, deducts the employee’s 11 percent social-insurance share on the insurable wage, and adds its own 18.75 percent. Bracket thresholds have been adjusted repeatedly through the inflation years, so the exact bands are a moving target an EOR tracks for you; the top-rate figure has held while the thresholds shift. A 13th-month salary is not statutory. An annual raise is statutory, which is unusual globally: Egyptian law mandates a periodic yearly increment, historically set as a percentage of the wage, and the new Labour Law carries the obligation forward tied to the insured wage.

The pound is where Egyptian payroll differs most from a textbook market. The EGP has been through repeated step-devaluations and a move toward a more flexible exchange rate, losing most of its dollar value across the past few years, and that history sits inside every compensation conversation. Professional candidates increasingly benchmark salaries in dollars even when the contract must pay in pounds; employers respond with more frequent reviews, FX-linked adjustment clauses or simply higher headroom. This is routine for a provider who works the market daily, and it is a fair test question for any EOR you shortlist: how is the payroll conversion rate set, when does it reset, and what does the provider charge on the spread.

Mechanically, your invoice arrives in dollars: salary converted at the provider’s rate, the 18.75 percent employer contribution, the fee, and any benefits. The employee receives pounds in an Egyptian bank account with tax and social insurance already withheld and a payslip to show it. Where a candidate asks for split or offshore payment to hold dollars, treat it as a compliance question first: salary for Egyptian employment belongs on the Egyptian payroll, and a good EOR will say so.