Most employees in Egypt are searching for a stable position with a competitive salary and benefits. When expanding into Egypt, your compensation and benefits plan will set you apart and encourage high retention rates.
However, it can be challenging to learn all of Egypt’s compensation laws while running a company in a new location. When you partner with G-P, you don’t have to worry about complicated compensation laws and hiring regulations. Our Employer of Record (EOR) solutions allow you to compliantly hire team members starting in just minutes, without setting up an entity
Egypt compensation laws
The minimum wage for the private sector is EGP 3,500. Employees who work more than 40 hours a week should receive overtime of 35% their normal pay during daylight hours and 70% for work at night. Any work on an employee’s day off or holidays should get compensated at 100%. In addition, employees are entitled to an additional day off in lieu of that day in the following week.
Guaranteed benefits in Egypt
Employees must receive certain guaranteed benefits in Egypt. For example, your Egypt benefits management plan must include time off for the country’s 12 national holidays and annual vacation time. Employees typically get 21 days of annual paid leave after working for 6 months. Once they work for 10 years or reach the age of 50, they get 1 month of paid leave.
Since Egypt is home to many practicing Muslims, employees who work for a company for 5 years consecutively are eligible for a 1-time, 1 month’s paid leave for a religious pilgrimage.
Egypt benefits management
The best way to encourage greater retention rates among employees is by offering supplemental benefits that aren’t required but are expected by employees. Annual bonuses are common in Egypt, so consider including them in your benefits management plan.
Private companies are also required to provide free healthcare to employees. This can be either private or through the Medical Insurance Plan of the Ministry of Social Insurance.
Companies can also consider offering a stipend that will cover additional medical costs.
Restrictions for benefits and compensation
If you follow the traditional model of expansion, you’ll need to incorporate in Egypt before you can disburse your benefits and compensation. However, doing so can take weeks or months and slow down your plans to start operating in the country.
As a global Employer of Record (EOR), G-P can make the process easier by hiring employees on your behalf. We understand Egypt’s compensation laws and can help make sure you stay compliant.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.