Economic Overview, Cairo Silicon Hub & Global BPO Gateway
Egypt offers an enormous, young, and technically proficient STEM talent pool, competitive developer salaries, and prime time zone alignment with Europe and the GCC.
Key Economic Sectors
- Software Engineering & Tech Startups: Leading MENA startup hub for fintech, healthtech, e-commerce, and AI engineering (Cairo & Alexandria).
- Multilingual BPO & Shared Services: World-class contact centers providing customer experience and IT support in English, German, French, and Italian.
- Energy, Logistics & Suez Canal: Maritime logistics, natural gas exports (Zohr gas field), and massive green hydrogen and solar energy initiatives.
Employment Contracts, Labour Law 12/2003 & Probation
Regulated by the Egyptian Labour Law (Law No. 12/2003).
- Mandatory Arabic Contracts: Contracts must be executed in triplicate in Arabic (bilingual Arabic/English is standard).
- Probation Period: Maximum statutory probation is 3 months. An employee cannot be subjected to more than one probation period with the same employer.
Working Hours, Overtime & Ramadan Adjustments
- Standard Hours: 40 to 48 hours per week (8 hours/day over 5 or 6 days). Reduced working hours typically apply during the holy month of Ramadan.
- Overtime Surcharges: Minimum 135% (35% premium) for daytime overtime; 170% (70% premium) for night overtime (sunset to sunrise); 200% (double time) on weekly rest days and official public holidays.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: 21 calendar days per year (increases to 30 calendar days after 10 years of service or upon reaching age 50).
- Public Holidays: ~15 to 18 official national public holidays.
- Maternity Leave: 90 to 120 calendar days fully paid maternity leave (under Labour Law and Child Law). Female employees enjoy strict dismissal protection during pregnancy and maternity leave.
Social Insurance (NOSI Law 148), Emergency Fund & ETA Tax
| Statutory Scheme | Employer Share | Employee Share | Description |
|---|---|---|---|
| Social Insurance (NOSI - Law 148/2019) | 18.75% | 11.00% | Pensions, disability, health & unemployment (capped base) |
| Emergency Fund (*Sandouq al-Tawari*) | 1.00% | 0.00% | Calculated on basic salary |
| Martyrs' Families Tribute Fund | 0.05% | 0.05% | National solidarity tribute levy |
| Total Statutory Payroll Burden | ~19.80% | 11.05% | Plus progressive ETA salary income tax (0%–27.5%) |
Termination, Labor Court & Severance Indemnity
- Termination by Employer: Unilateral dismissal requires petitioning the competent Labor Court; direct arbitrary dismissal requires compensation of at least 2 months' total salary per year of service.
- Notice Periods: 2 months (tenure < 10 yrs) or 3 months (tenure > 10 yrs).
Why Use an Employer of Record (EOR) in Egypt
- Immediate Nearshore Tech Hiring: Onboard software engineers and customer support agents in Cairo in days.
- NOSI & ETA Tax Management: Flawless compliance with Law 148/2019 social insurance, Emergency Funds, and monthly tax filings.
- Ministry of Manpower Quota Compliance: EOR manages 90/10 workforce ratio requirements and expatriate work permits.
Hiring in Egypt? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
