Egypt is in northeast Africa, borders the Mediterranean Sea and the Red Sea, and controls the Suez Canal. With so many rich exports such as oil, chemicals, agricultural products, livestock, and textiles, Egypt is an attractive location for companies looking to expand to Africa and beyond.
You have to consider a variety of factors once you decide to expand, including payroll. Companies have four different Egypt payroll options to choose from depending on their needs. Once you pick the one that works best, you have to set up your Egypt payroll so that you can stay compliant. G-P can help through Egypt payroll outsourcing. We’ll take on the risk of compliance so that you can instead focus on growing your company.
Taxation Rules in Egypt
Both employees and employers have to contribute to social security, which provides pensions, disability payments, sickness payments, maternity leave, death allowances, and unemployment insurance. For salaries up to LE 1,670, employers contribute 26%, and employees contribute 14%. Salaries over 1,400 Egyptian pounds (EGP) and up to 9,400 EGP require employer contributions of 18.75% and employee contributions of 11%. The max and the minimum salaries increase by 15% every year in January.
Egypt Payroll Options for Companies
Your company can choose from different Egyptian payroll options, including:
- Remote: Companies can choose remote payroll through their parent company if they want to add the subsidiary’s employees to that existing payroll. However, your employees from each country will have separate regulations and laws.
- Internal: If you feel committed to Egypt and want to stay long-term, you can set up an internal payroll in your subsidiary to pay employees, but you’ll need a larger budget to hire HR staff.
- Egypt payroll processing company: You can also opt to work with a local Egypt payroll processing company to outsource your payroll. If you do, remember that you’ll still be held compliant for your payroll.
- Egypt payroll outsourcing: Finally, companies can choose Egypt payroll outsourcing services with G-P. Doing so is the only option that will outsource your payroll and allow somebody else to take on compliance, so you’ll truly have nothing to worry about.
How to Set Up a Payroll in Egypt
If you decide to set up your own payroll in Egypt, you have to establish a subsidiary in the country before you can run payroll. However, it can take weeks or months to incorporate, leading talented candidates to find new jobs before you get a chance to hire them and add them to your payroll.
G-P offers a better alternative with our Egypt payroll outsourcing services. We’ll set up your payroll so that it’s compliant with all of Egypt’s employment compliance laws, and we’ll hire employees to work on your behalf. You won’t have to go through the Egypt subsidiary setup process when you’re working with us since we’ll use our existing subsidiary to help you work faster.
Entitlement/Termination Terms
Entitlement and termination terms are often tricky in other countries, including Egypt. We recommend including this information in an employment contract before choosing an Egypt payroll option. Employers have to go before a committee with judicial powers at the Ministry of Manpower and Migration to terminate an employee. Notice periods depend on how long the employee has worked for your company.
Payroll Processing Company in Egypt
If you’re ready to expand to Egypt, we can help. Contact us today to learn more about Egypt payroll outsourcing.