Employer of Record (EOR) services in Egypt

An Employer of Record in Egypt is a local partner that legally employs workers on your behalf. The EOR manages contracts, payroll, benefits, and compliance with Egyptian labor and tax laws, while you retain full control over the employee’s day-to-day tasks. This enables fast, compliant hiring in Egypt without setting up your own entity.

With an EOR, foreign companies can hire employees under the provider’s registered Egyptian entity. The EOR handles employment contracts, payroll processing, and compliance obligations, allowing you to legally employ staff without the cost or delays of establishing a subsidiary.

An EOR ensures compliance by managing:​

- Drafting and registering compliant labor contracts
- Processing payroll and filing monthly tax returns
- Withholding and paying personal income tax
- Social insurance contributions for employers and employees
- robation, termination, and severance rules
- Paid leave and official holiday entitlements

The EOR calculates salaries in Egyptian Pounds (EGP), withholds the required income tax (progressive rates from 0% to 27.5%), and pays employer and employee social insurance contributions. Statutory benefits include paid leave, maternity leave, and sick leave. Additional benefits such as private health insurance, stipends, or equipment can be added at your request.

EOR services typically involve two costs: the employee’s salary and the provider’s service fee. Fees vary by provider and are usually a flat monthly rate or a percentage of payroll. Using an EOR is significantly more cost-efficient than setting up and running your own legal entity.

Most EOR providers can onboard new hires in 1–3 weeks, depending on the speed of documentation. This includes preparing contracts, registering employees with authorities, and setting up payroll.

Yes. An EOR can support visa and work permit applications for expatriate employees, ensuring compliance with Egyptian immigration rules and helping you avoid administrative delays.

- EOR services: The provider becomes the legal employer, covering contracts, compliance, payroll, and benefits.
- Payroll outsourcing: The provider only processes payroll, but you still need a legal entity in Egypt.

For companies without an entity, EOR is the only option for compliant hiring.

The EOR assumes responsibility for compliance with labor laws, tax regulations, and social insurance obligations. This protects your business from risks such as employee misclassification, payroll errors, or wrongful termination claims.

Yes. If you later establish your own entity in Egypt, employees can be smoothly transferred from the EOR to your company. The EOR coordinates the transition to ensure compliance and continuity of employment.