Employer of Record (EOR) in Egypt 2025: The Complete Hiring Guide
- Gegidze • გეგიძე | Marketing
- Apr 22
- 15 min read
Table of Contents
Why Egypt is a 2025 hiring opportunity
Still stuck trying to “get payroll set up” while your top candidate signs with someone faster?
You’re not alone.
Startups lose great hires every week, not because of budget, not because of culture fit, but because they couldn’t move fast enough.
The team was ready. The offer was drafted. But legal? Payroll? Local contracts? “We’re still figuring that out.”
Meanwhile, your competitor just closed a full support team in Cairo for the cost of one senior hire in Berlin.
That’s Egypt in 2025. Quietly becoming the go-to hub for cost-effective, remote-ready talent in tech, ops, finance, and customer support.
Here’s what makes it a magnet for global hiring:
Fluent, educated, tech-savvy workforce - trained for export markets.
Monthly salaries are up to 70% lower than in Europe or the Gulf.
Time zone overlaps with Europe, MENA, and the UK.
Bilingual Arabic/English teams that know global tools and workflows.
And it’s not just BPO giants hiring here anymore. It’s startups. Remote-first scaleups. High-growth product teams who need lean, fast execution and smart people who can own outcomes.
If you’re serious about building globally in 2025, Egypt isn’t a backup plan. It’s the move.
What Is an Employer of Record (EOR) and How It Works in Egypt
Your legal setup in Egypt is just… nonexistent.
Now you’re scrambling for solutions while your competition is already onboarding.
This is where an Employer of Record (EOR) saves the deal.
An EOR is a company that hires local talent on your behalf. You stay in control of the day-to-day work, while the EOR takes on the legal burden: contracts, payroll, tax registration, social insurance, labor law compliance all of it.
Here’s how it works with TeamUp:
1. You pick the talent.
We don’t touch your hiring decisions. Whether you’ve got a developer in Alexandria or a sales lead in Cairo, you recruit. We just make it legal.
2. We hire them compliantly on your behalf.
We issue a locally compliant contract (Arabic + English), register your employee for social insurance, and manage onboarding fast.
3. You manage their work, we handle the rest.
They report to you, use your tools, and follow your roadmap. We’re invisible in the day-to-day, just handling the legal side behind the scenes.
Payroll in Egyptian Pounds (EGP)
Income tax and social insurance contributions
Paid time off, holidays, and sick leave tracking
Maternity and paternity leave administration
Offboarding, severance, and end-of-service documentation
4. You receive one monthly invoice.
No paperwork, no local filings, no hidden costs. Just a single, consolidated invoice covering salary, taxes, and our flat EOR fee.
Hiring in Egypt shouldn’t cost you the right candidate or months of red tape. With TeamUp as your EOR, you can hire legally in days, not quarters.
Why Hiring in Egypt Without an EOR Is Complicated
You’ve got a hire lined up in Cairo. Maybe a backend engineer. Maybe your first Arabic-speaking support lead.
But you’re not hiring… yet.
Why? Because the infrastructure isn’t there. And Egypt makes sure you feel that.
Let’s break it down.
You can’t legally hire without local infrastructure
If you don’t have a registered company in Egypt, you can’t employ full-time staff. That’s not a loophole. That’s the law.
No registered tax ID?
No local bank account in EGP?
No enrollment with Egypt’s Social Insurance Authority?
Then you can’t issue a legal contract, withhold taxes, or pay your employee properly. So while your competitor gets their new hire started next week, you’re still Googling how GAFI registration works.
Payroll in Egypt is paperwork-heavy and penalty-prone
This isn’t a plug-and-play Stripe integration.
You’ll need to:
File income tax withholdings across tiered brackets (up to 25%)
Register and pay employer social insurance (~18.75%)
Handle Arabic payslips and monthly reports
Stay compliant with government-mandated bonuses, allowances, and severance
Miss one deadline? Your payroll gets flagged.
Miss one deduction? You’re looking at fines.
Employment law isn’t just formalities, it’s enforced
Labor contracts in Egypt must be:
Written in Arabic (bilingual OK, but Arabic version rules)
Structured with the right probation, notice, and termination clauses
Registered with the Ministry of Manpower when needed
Employees in Egypt know their rights. And if you mess up a termination or skip out on entitlements? They’ll take it to court and they’ll win.
The risk? It’s all on you
You’re liable for everything.
No legal buffer. No shared responsibility. No room for error.
So if you’re still thinking, “We’ll just make it work with a local accountant…”
You’re already behind.
What an Employer of Record (EOR) in Egypt actually handles
Hiring in Egypt is simple… only if you already know how to navigate Arabic contracts, payroll in EGP, local insurance systems, and the 18.75% employer tax rate.
If you don’t, you need a partner who does.
That’s exactly what an Employer of Record (EOR) like Team Up handles. We’re the legal employer on paper, so you can focus on the actual job, not the admin.
Here’s what’s on our side of the table:
Locally compliant employment contracts in Egypt
Egyptian labor law requires every full-time employee to have a written employment contract in Arabic. We prepare and sign these contracts based on:
Job title, gross salary (in Egyptian Pounds)
Working hours (usually 40–48 hours/week)
Probation periods (up to 3 months allowed)
Local termination rules and severance terms
Everything is built for compliance and signed under our local structure.
Monthly payroll in EGP
We run monthly payroll in Egyptian Pounds, with full tax deductions and local filings.
Here’s what’s handled automatically:
Income tax (bracketed up to 25%)
Social insurance (18.75% employer, 11% employee)
Payslips in Arabic and English
Monthly filings with Egyptian tax and social insurance authorities
No need for local accountants. No risk of late payments or missed forms.
Government registration & local compliance
We register every hire with the Social Insurance Authority and make sure they’re:
Fully onboarded under the law
Enrolled in the right benefits
Protected under Egypt’s Labor Code, this includes leave, notice, and sick pay tracking, all covered.
Local employee benefits (that actually matter in Egypt)
Want to attract top Egyptian talent? Base salary alone won’t cut it.
We help you offer localized, payroll-compliant perks:
Private health insurance (widely expected in tech and ops roles)
Ramadan bonuses and holiday pay
Transport or home office stipends
Coworking space access in Cairo, Alexandria, or remote options
All of it processed through payroll. Fully legal. Fully appreciated by candidates.
Local support in Arabic & English
We don’t just run backend systems. We support your team like a real employer should.
HR support in Arabic and English
Leave requests, pay questions, contracts, all handled locally
Exit processes, severance, and documentation done right
Labor law, tax & compliance in Egypt
Hiring in Egypt comes with real opportunity but also real rules.
From mandatory Arabic contracts to rigid payroll obligations and social insurance laws that change more often than Cairo traffic patterns, it’s not a market where you can afford to wing it. If you’re hiring in Egypt without a strong local compliance strategy, you’re one payroll slip away from fines, or worse, legal headaches.
That’s why companies using an Employer of Record in Egypt don’t just move faster, they stay safer.
Here’s what actually matters when it comes to Egyptian labor law, taxes, and compliance in 2025:
Mandatory employment contracts
Language: All employment contracts must be written in Arabic. Bilingual versions are allowed, but the Arabic version is legally binding.
Form: Contracts must be issued in triplicate (employee, employer, and Labor Office copy).
Contents must include:
Job title and description
Work location
Gross salary in Egyptian Pounds (EGP)
Working hours and rest periods
Probation period (up to 3 months)
Duration of employment (fixed or indefinite)
Notice periods and termination terms
Non-compliant or missing contracts can lead to labor inspection violations or employee claims.
Working hours, leave & holidays
Standard working hours:
Maximum: 8 hours/day or 48 hours/week
Employees must receive at least 1 full day off per week
Paid annual leave:
Minimum 21 working days/year
Increases to:
30 days after 10 years of service
Or 5 years if the employee is over age 50
Sick leave:
Requires a medical certificate
Compensation is paid through the Social Insurance Authority
Paid at:
75% of the salary for the first 90 days
85% for the next 90 days
Public Holidays:
Egypt observes official 14 public holidays annually, including:
January 1 (New Year)
April 25 (Sinai Liberation Day)
May 1 (Labor Day)
June 30 (Revolution Day)
July 23 (National Day)
October 6 (Armed Forces Day)
Eid al-Fitr (3 days)
Eid al-Adha (4 days)
Islamic New Year
Prophet’s Birthday
Maternity Leave:
90 days paid, with at least 45 days post-birth
Available after 10 months of prior social insurance contributions
Employer pays wages, reimbursed partially through social insurance
Women are entitled to up to 2 maternity leaves during their career with the same employer
Paternity Leave:
Not currently mandatory under Egyptian law
Some companies offer 3–5 days of paid or unpaid leave
Payroll tax & social contributions
Income tax (PAYE):
Egypt uses a progressive income tax system, which means employees don’t get taxed at one flat rate; each slice of their salary falls into a bracket. The more they earn, the more they contribute.
2025 personal income tax brackets in Egypt:
TeamUp handles income tax withholding, remittance, and monthly returns under Egyptian law.
Annual income (egp) | Monthly equivalent (egp) | Rate |
up to 15,000 | up to 1,250 | 0% (exempt) |
15,001 – 30,000 | 1,251 – 2,500 | 2.50% |
30,001 – 45,000 | 2,501 – 3,750 | 10% |
45,001 – 60,000 | 3,751 – 5,000 | 15% |
60,001 – 200,000 | 5,001 – 16,667 | 20% |
200,001 – 400,000 | 16,668 – 33,333 | 22.50% |
over 400,000 | over 33,333 | 25% |
What this looks like in real life
Let’s say your employee earns EGP 300,000 annually.
Here’s a breakdown of how their income is taxed:
First EGP 15,000 – Exempt
Next EGP 15,000 (15,001–30,000) – taxed at 2.5%
Next EGP 15,000 (30,001–45,000) – taxed at 10%
Next EGP 15,000 (45,001–60,000) – taxed at 15%
Next EGP 140,000 (60,001–200,000) – taxed at 20%
Remaining EGP 100,000 (200,001–300,000) – taxed at 22.5%
This gets automatically deducted and filed monthly by the EOR without guessing or fines.
Social Insurance (Mandatory):
Managed through Egypt’s National Social Insurance Authority
Employer Contributions:
Approx. 18.75% of base salary
Includes pension, unemployment, and accident insurance
Employee Contributions:
11% of gross salary (withheld at source)
Wage Cap (2025):
Variable limits apply depending on fixed/variable salary breakdowns, typically up to:
EGP 10,900 (basic)
EGP 4,040 (variable)
Social insurance applies to all full-time employees, with monthly declarations and payments required by the 15th of each month.
End of employment: termination rules in Egypt
Letting someone go? Here’s what the law requires:
Notice Periods:
2 months for employees with <10 years of service
3 months for employees with ≥10 years
Severance:
Not explicitly required under the law for regular termination
However, end-of-service gratuity may be owed depending on contract terms or labor court outcomes
Termination for Cause:
Must be documented and proven (fraud, performance, misconduct)
Failure to follow due process can lead to legal liability or reinstatement orders
An EOR manages the termination process, ensures all calculations (leave payout, social insurance updates, final salary) are accurate, and keeps your business protected.
Labor inspections & compliance enforcement
Egypt has strict enforcement of:
Labor law compliance
Social insurance participation
Proper contracts and working conditions
Companies that fail to comply face:
Audits from the Labor and Social Insurance authorities
Fines
Court action or injunctions
TeamUp keeps your employment operations in Egypt fully compliant, avoiding paperwork risks, audit headaches, or unexpected legal issues.
How much does it cost to use an EOR in Egypt?
Hiring in egypt isn’t just affordable, that’s right. But it’s one of the smartest ways to grow a remote team without burning budget or getting buried in bureaucracy too.
Let’s be specific.
Your monthly cost per employee through an EOR breaks down into three parts:
1. Gross salary
Market salaries vary by role, but here are real benchmarks for 2025:
Mid-level backend developer: egp 30,000/month
Senior product designer: egp 40,000/month
Customer support lead: egp 20,000/month
These are full-time roles based in Cairo, Alexandria, or remotely across Egypt.
2. Employer contributions
When you use Team Up, we handle all local compliance, including:
Social insurance: approx. 18.75% of gross salary
Vocational training levy: 1%
Stamp tax and minor fees: varies (minimal)
So on a EGP 30,000/month salary, expect around EGP 6,000–6,200 in employer-side obligations.
3. TeamUp’s flat EOR fee
We charge a flat €199/month per employee (approx. € 6,700). This includes:
Compliant employment contracts in Arabic
Local payroll processing in EGP
Tax registration and monthly filings
Tocial insurance setup and payments
Onboarding, offboarding, and leave management
Bilingual employee support (English + Arabic)
Without hidden fees, FX markup, or invoice surprises.
Sample breakdown: mid-level developer at egp 30,000/month
Gross salary: EGP 30,000
Employer contributions: egp 6,000
Teamup fee: egp 6,700
Total monthly cost: egp 42,700
(approx. $1,375 USD, all-in)
What’s covered?
Locally compliant contracts
Payroll, taxes, and reporting
Social insurance contributions
Leave and holiday tracking
Direct support for your Egyptian team
What you can offer through an EOR in Egypt
You’re not just trying to hire in Egypt, you’re trying to compete. And to compete here, salary alone won’t cut it.
Top candidates, especially in engineering, design, operations, and support, expect more than a paycheck. They want legal employment, proper benefits, and a setup that feels structured and stable. That’s where an EOR changes everything.
With Team Up, you can legally hire in Egypt and offer a benefits package that’s fully localized, fully compliant, and actually competitive.
Here’s what your offer includes when you hire through our EOR:
Paid time off & public holidays
21 working days of paid annual leave after six months of service (mandatory by law)
14+ national public holidays, including religious and civil observances (e.g. Eid, Revolution Day, Sinai Liberation Day)
We track and manage all leave, ensuring full compliance with Egypt’s labor code
Maternity, paternity & sick leave
Maternity leave: 90 calendar days of paid leave (45 days must be after childbirth)
Paternity leave: Not legally required, but you can offer 5–7 days to stay competitive
Sick leave: Up to 180 days per year, with 75%–85% salary reimbursed via Egypt’s Social Insurance Authority
We handle documentation, reimbursement filing, and communication with your employee
Private health insurance
Not mandatory, but expected in white-collar and tech roles
We can help you offer standard or premium plans, processed through local payroll and tracked for compliance
Remote-friendly perks
Egyptian professionals, especially in tech, expect flexibility. We help you deliver it legally and efficiently:
Optional extras that boost retention
Learning & development budgets for courses, certifications, and workshops
Wellness perks like gym memberships, therapy stipends, or wellness apps
All structured through payroll with no gray areas, no compliance gaps
Local HR support in Arabic and English
Your employees get local support directly from us for:
Onboarding and documentation
Leave tracking and policy questions
Payroll and benefits issues
Compliant offboarding when needed
EOR vs payroll outsourcing in Egypt
Hiring in Egypt and stuck choosing between an Employer of Record (EOR) and payroll outsourcing?
Here’s the bottom line: if you don’t already have a legal entity in Egypt, payroll outsourcing won’t get you very far. It can’t make you compliant, it can only process salaries for employees you’re already legally allowed to hire.
Let’s break it down.
What payroll outsourcing actually does
Payroll outsourcing is great if you already have:
A registered Egyptian entity
A local bank account
A tax ID
Someone on your team who understands local labor law
It typically includes:
Calculating gross-to-net salaries
Withholding income tax and social insurance contributions
Submitting monthly reports to the Egyptian Tax Authority and Social Insurance Office
Generating pay slips
What it doesn’t include:
Drafting compliant contracts under Egyptian labor law
Handling onboarding, offboarding, and terminations
Managing legal benefits like sick leave, maternity, or paid time off
Providing local HR support in Arabic
Shielding you from compliance risk
You stay on the hook, legally and financially, for every employment decision.
What an EOR does instead
With an EOR like TeamUp, you don’t need a local entity at all. We become the legal employer, take on the liability, and manage everything locally.
You still manage the work, hiring, goals, and performance. But we handle:
Employment contracts (in Arabic, compliant with Egyptian labor law)
Monthly payroll in EGP
Tax filings and social security contributions
Benefits, paid leave, and public holidays
Onboarding, offboarding, and HR support
Full employment lifecycle compliance
No setup. No red tape. No legal gaps.
When to use each
Scenario | You Need |
You don’t have a legal entity in Egypt | EOR |
You want to hire in days, not months | EOR |
You already have a company in Egypt | Payroll Outsourcing |
You’re hiring 1–10 people to test the market | EOR |
You want full control and already have an internal HR | Payroll Outsourcing |
Payroll outsourcing is for companies that are already in the game. An EOR is for companies that want to get started fast, legally, and without the overhead.
If you’re expanding into Egypt without a registered entity, EOR isn’t a workaround. It’s the only real option that works.
How to choose the right EOR in Egypt
Not all EORs can actually hire in Egypt, even if their website says otherwise.
Unfortunately, most don’t.
They sell “global reach” but skip the details: labor law, tax thresholds, social insurance, Arabic contracts, and how to keep your team compliant from day one.
Here’s how to spot a real partner.
1. They must understand Egyptian labor law and follow it
Hiring in Egypt isn’t just signing a contract. It means navigating Law No. 12 of 2003, managing probation periods, calculating leave balances, and handling offboarding the right way.
Ask:
Do you issue compliant contracts in Arabic?
How do you handle paid leave, sick leave, and social insurance?
What’s your process for employee terminations and severance?
If their answer sounds vague or overly “global,” keep looking.
2. End-to-end coverage, not just payroll
You need more than a payment processor. A real EOR will handle:
Employment contracts
Tax registration and social security filings
Payroll in EGP
Benefits and entitlements
HR support for your employees
Ask:
Do you manage both payroll and labor compliance?
Can employees get support in Arabic?
Do you help with onboarding, leave tracking, and offboarding?
If they only talk about salary disbursement, that’s a problem.
3. Pricing should be flat and fully transparent
No percentage-based pricing. No hidden FX markups. No surprise “add-ons.”
Ask:
What’s your flat fee per employee?
Are onboarding, offboarding, and reporting included?
Will I be billed separately for local compliance?
You should get one monthly invoice, all-in.
4. They must move at startup speed
Top talent in Egypt won’t wait weeks. A strong EOR gets employees onboarded, registered, and paid in under 10 business days.
Ask:
How fast can you onboard a new hire?
Do you support contractor-to-employee conversions?
Who do we talk to if something goes wrong?
Delays cost hires. You want a partner who keeps up.
Is an EOR the right move for you?
Not every company needs an EOR. But if you’re scaling into Egypt and don’t want to deal with paperwork, tax law, or long setup timelines, this is probably your best path forward.
Let’s make the decision easier.
Use an EOR in Egypt if you:
Want to hire fast, without opening a local company
Are building a remote or hybrid team in Cairo, Alexandria, or beyond
Need to stay fully compliant with labor law, tax, and social insurance
Want to test the market before investing in long-term infrastructure
Prefer one partner, one contract, and zero admin overhead
Don’t want to manage leave, maternity, or payroll filings manually
Care about offering real local benefits to attract serious talent
An EOR might not be for you if you:
Plan to open a full-scale office in Egypt in the next few months
Are hiring 50+ employees and want full legal ownership from day one
Already have a registered entity and local HR/legal team
Need custom employment structures for highly complex roles
For most startups and growth-stage teams, though, EOR is the smart move.
You get speed. You stay compliant. You focus on building your team, not learning Egyptian labor law.
If that sounds like your kind of setup, let’s make it happen.
Bottom Line
Egypt isn’t just an affordable market, it’s a fast-moving talent hub for engineering, support, product, and design roles. But hiring here legally? That’s a whole different game.
Setting up a local entity takes time. Payroll registration requires local know-how. And if you don’t get the compliance right, you’re one audit away from serious risk.
That’s why smart teams aren’t waiting around.
They’re using Employer of Record (EOR) services to:
Hire in weeks, not quarters
Stay compliant with Egyptian tax and labor laws
Skip entity setup and legal red tape
Offer real local benefits to attract top talent
Get one clean invoice without surprises or headaches
With TeamUp, you get all of that and more.
We handle the contracts, payroll, benefits, taxes, and offboarding. You focus on your product, your team, and your growth.
Ready to hire in Egypt without the setup, delays, or risk?
Let’s talk. Book a free consult and go live in under 10 business days.
Frequently asked questions (FAQs)
What is an Employer of Record (EOR) in Egypt?
An Employer of Record (EOR) in Egypt is a company that legally employs your team on your behalf, so you don’t have to set up a local entity. You control the day-to-day work, while the EOR handles employment contracts, payroll, taxes, and compliance with Egyptian labor law.