> Egypt’s new labour law took effect on 1 September 2025. The 2026 rules on contracts, leave, social insurance and salary tax, and how foreign companies employ. > > Web page: https://www.growaxis.net/insights/employing-people-in-egypt-2026 [Insights](https://www.growaxis.net/insights) Employer of record (EOR) in Egypt # Employing people in Egypt in 2026: what a foreign company needs to know Egypt’s new labour law took effect on 1 September 2025\. These are the rules that shape an employment in 2026, from contracts, probation and leave to social insurance, salary tax and ending a contract, and the three ways a foreign company can employ people there. By GrowAxis team · 27 October 2026 · 4 min read A foreign company can employ people in Egypt in three ways: set up its own Egyptian company, use an employer of record (EOR) that employs people on its behalf, or work with a provider such as GrowAxis that employs and manages an embedded team. Whichever it chooses, the employment follows Egypt’s Labour Law 14 of 2025, in force since 1 September 2025, and the social insurance and tax rules below. ## Three ways to employ in Egypt - Your own company: full control, but you set up an entity, register with the tax and social insurance authorities and run payroll yourself. - An employer of record: the EOR is the legal employer and runs payroll and compliance, while you find and manage the person. Global platforms list fees from about $599 a person a month. - An embedded team: the provider finds, employs, equips and manages the people, who work inside your team. GrowAxis works this way from Cairo. ## Contracts and probation - Contracts are in writing, in four copies: for the employer, the employee, the social insurance office and the labour office. - A contract is presumed permanent unless there is a reason to fix its term. - Probation lasts up to three months, and only once with the same employer. - A resignation letter signed in advance is invalid. ## Hours, overtime and leave - Up to 8 hours a day and 48 a week, with at least an hour of rest a day and a paid weekly rest day. - Overtime is paid at 35% extra by day and 70% by night. - Annual leave is 15 days in the first year (after six months of service), 21 days from the second year, and 30 days after ten years or from age 50. - There are 13 paid public holidays a year; the Islamic holidays move with the moon. - Remote, part-time and flexible work are recognised, with the same basic protections as office work. ## Pay - The private-sector minimum wage is EGP 7,000 a month, in force since 1 March 2025; a 2026 decree requires the National Wages Council to review it at least once a year. - Employers must give a yearly raise of at least 3% of the insurable wage. - Pay is often discussed as net, take-home pay, so agree in writing whether a figure is net or gross. ## Social insurance and salary tax - Social insurance is 18.75% for the employer and 11% for the employee, on an insurable wage held between EGP 2,700 and EGP 16,700 a month in 2026. - Salary tax runs from 0% to 27.5% on yearly pay after employee social insurance and an EGP 20,000 exemption; above EGP 600,000 a year the lower bands fall away. - The employee also pays 0.05% of gross pay to the martyrs’ fund. - Example: EGP 20,000 gross pays EGP 1,837 of social insurance, EGP 2,445 of tax and EGP 10 to the martyrs’ fund, leaving EGP 15,708 net. The employer adds EGP 3,131.25 of social insurance, for a monthly cost of EGP 23,131. ## Ending an employment - Three months’ notice applies to a permanent contract, from either side. - A resignation must be confirmed with the labour authorities. - Dismissal for misconduct needs a labour court decision. - Termination without misconduct is compensated at two months’ wages per year of service. ## Data protection Egypt’s Personal Data Protection Law (Law 151 of 2020) applies to personal data processed in Egypt. If your company is in the EU, data accessed from Egypt also needs a transfer basis under the GDPR, such as the EU’s standard contractual clauses. ## What to check before you start 1. Net or gross: agree which figure an offer means. 2. Who the legal employer is, and which contract the person signs. 3. Equipment, data access and where work is stored. 4. How pay is reviewed when the pound moves. 5. The notice and probation terms in the contract. ## How GrowAxis helps GrowAxis is the employer of its embedded experts in Egypt: it finds them with you, runs contracts, payroll, social insurance and equipment, and reviews performance with you, while the people work inside your team. The employer of record page compares it with an EOR and costs both. ## About this guide Sources: Labour Law 14 of 2025 and the summaries by Andersen Egypt, EY and ZenHR; Clyde & Co on remote work; the 2026 social insurance limits set by NOSI; the salary tax bands in PwC’s Worldwide Tax Summaries; the 2026 gross-to-net steps published by Tawzef; and reporting on the minimum wage of 26 October 2026\. Checked by the GrowAxis team on 27 October 2026\. A summary for planning, not legal advice: check with an Egyptian employment lawyer before you hire. [Related serviceEmployer of record (EOR) in EgyptEmployer of record in Egypt, 2026: the cost (18.75% social insurance, fees of $199 to $599 a month), the labour and data laws, and GrowAxis as your EOR.See how it works](https://www.growaxis.net/services/employer-of-record-egypt) Where is your growth stuck? 30 minutes with our team. We map it, and tell you which engine to install first. No pitch. ## Find out which engine you need first. 30 minutes with our team. We map where your growth is stuck, which engine to install first and what installing it looks like with your team. No pitch. 30 minutes · Free · No pitch You leave with 1. The engine to start with, and why 2. What it would install: process, tools, AI and people 3. The path from signature to live within 30 days --- ## Contact GrowAxis - Email: contact@growaxis.net - Phone: +32 492 41 3612, +20 106 168 3566 - Offices: Uxbridge, United Kingdom & Cairo, Egypt - Profiles: https://www.linkedin.com/company/growaxis, https://www.instagram.com/growaxiss/, https://clutch.co/profile/growaxis, https://www.goodfirms.co/company/growaxis, https://www.sortlist.com/agency/growaxis, https://www.trustpilot.com/review/growaxis.net - The first step is a free 30-minute growth assessment: https://www.growaxis.net/#assessment