Salaries, contributions and employment cost in Egypt in 2026
Salaries, contributions, taxation, and top roles. Kernel data.
Employment cost in Egypt in 2026
In Egypt, employer cost is gross salary plus employer contributions, estimated at around 19% before ceilings. Net salary is gross pay less employee contributions and income tax, whose top bracket reaches 28%. Currency: Egyptian Pound (EGP).
Understanding a payslip in Egypt
A payslip moves from gross salary to net pay by applying contributions, taxable income and income tax. Ceilings, benefits, dependants and sector rules can change the result.
- 1
Gross salary
Pay before mandatory deductions in EGP.
- 2
Employee contributions
Pension, health and other applicable deductions, including any contribution ceilings.
- 3
Taxable income
The base after locally permitted deductions and allowances.
- 4
Income tax
The amount calculated under current brackets, credits and local tax rules.
- 5
Net salary
Pay after employee contributions and income tax, excluding contract-specific benefits or deductions.
Essential guide
Employing in Egypt
Labour Law No. 14 of 2025 has applied since 1 September 2025. It replaces the 2003 framework and strengthens requirements for contracts, resignations and termination. Costs use the active tax and social records.
Decision brief
High confidenceRecent reform requiring a compliance workstream. Update contract templates, resignation and termination procedures, digital records and foreign-worker rules.
Complete guide
Contracts and hiring+
The contract should comply with the 2025 Law and clearly define role, pay, location, duration and probation. Permanent employment remains the safest option for an ongoing need.
Working time+
Ordinary time is regulated around 8 hours per day and 48 hours per week, subject to breaks, weekly rest and sector rules.
Leave and absences+
The 2025 regime provides progressive entitlement, with a lower minimum in the first year, then 21 days, and enhanced rights based on service or age.
Termination+
Termination and resignation are highly formalised. Check the ground, procedure, notices, administrative ratification of resignation and labour-court jurisdiction.
Payroll and obligations+
Payroll should integrate salary, tax withholding, the social-insurance ceiling and benefits. Public calculations apply the active 2026 records.
International hiring+
Work permits, quotas or qualification conditions should be checked under the new framework before employment starts.
Employment law, verified sources
Reviewed on 16/09/2026. Official sources take priority.
- Official sourceMinistry of Labour, Labour Law No. 14 of 2025
- Intergovernmental sourceOIT NATLEX, Labour Law No. 14 of 2025
Implementing rules and administrative practice under the 2025 Law should be monitored as they settle.
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Income tax in Egypt
| Bracket | Lower bound | Upper bound | Rate |
|---|---|---|---|
| 1 | 0 | 40,000 | 0.0% |
| 2 | 40,000 | 55,000 | 10.0% |
| 3 | 55,000 | 70,000 | 15.0% |
| 4 | 70,000 | 200,000 | 20.0% |
| 5 | 200,000 | 400,000 | 22.5% |
| 6 | 400,000 | 1,200,000 | 25.0% |
| 7 | 1,200,000 | and above | 27.5% |
FAQ
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