Africa Deployments provides Professional Employer Organisation (PEO) services in Egypt, offering a co-employment arrangement for international companies that want to manage an Egyptian team compliantly under Labour Law No. 12/2003 without running a full internal payroll function. As a PEO partner in Egypt, Africa Deployments manages NOSI social insurance contributions, ETA income tax withholding, Labour Law-compliant contracts in Arabic and English, and Egyptian pound payroll processing, while your business retains direct control of your Egypt-based workforce.
Quick facts: PEO Egypt at a glance
- Social insurance: 18.75% employer + 10.75% employee of monthly basic salary
- Income tax: Progressive 0% to 25% on annual net income
- Minimum wage: EGP 6,000/month (public sector; private sector varies)
- Annual leave: 21 working days per year (30 days for over-50s or 10+ years’ service)
- Maternity leave: 90 days; employer-funded
- Language: Arabic required for enforceable contracts
What Is PEO in Egypt?
A PEO in Egypt is a co-employment arrangement where Africa Deployments shares the statutory employer responsibilities for your Egyptian workforce. Africa Deployments manages monthly NOSI social insurance contribution calculation and payment, ETA income tax withholding and remittance, Arabic-language payslip generation, and Labour Law No. 12/2003-compliant contract administration. Africa Deployments’ PEO services in Egypt are designed for businesses that have or are building an Egyptian entity and want compliance managed by a specialist Africa employer partner.
Egypt Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Labour Law No. 12/2003; Social Insurance Law No. 148/2019 |
| Minimum wage | EGP 6,000/month (public sector from March 2024) |
| Social insurance | 18.75% employer + 10.75% employee of basic salary |
| Income tax | Progressive 0% to 25% on annual net income |
| Tax authority | Egyptian Tax Authority (ETA) |
| Annual leave | 21 working days (30 for over-50s or 10+ years) |
| Maternity leave | 90 days; employer-funded |
Payroll, Tax and Social Insurance Compliance in Egypt
Egypt employers file monthly income tax declarations with the Egyptian Tax Authority (ETA). Income tax is progressive from 0% on annual net income up to EGP 40,000 to 25% on income above EGP 1,200,000. Social insurance contributions of 18.75% employer and 10.75% employee are calculated on basic monthly salary and remitted to NOSI. The transition to new social insurance Law No. 148/2019 involves phase-in of updated contribution ceilings and rates over a multi-year period, requiring payroll systems to apply the correct transitional rate each year. Employment contracts must be in Arabic to be enforceable under Egyptian labour law – English translations may be produced alongside but the Arabic version controls in any dispute.
Why Companies Choose Africa Deployments for PEO in Egypt
- Labour Law No. 12/2003-compliant co-employment contracts in Arabic and English
- Monthly NOSI social insurance contribution management under the Law No. 148/2019 transition schedule
- ETA income tax withholding and monthly remittance
- Arabic-language payslip generation in Egyptian pound (EGP)
- Egypt PEO as part of Africa Deployments’ North Africa multi-country employer platform
Frequently Asked Questions
What is the social insurance rate in Egypt?
Social insurance contributions are 18.75% employer and 10.75% employee on basic monthly salary, remitted to NOSI. The combined rate of 29.5% makes social insurance a significant employer on-cost in Egypt.
What is the new Egyptian social insurance law?
Social Insurance Law No. 148/2019 is being phased in over multiple years, gradually updating contribution ceilings and rates. Businesses must apply the correct transitional rates each year – Africa Deployments tracks and applies the current phase-in schedule as part of the Egypt PEO service.
Do employment contracts need to be in Arabic in Egypt?
Yes. Employment contracts in Egypt must be in Arabic to be enforceable under Labour Law No. 12/2003. Africa Deployments produces bilingual Arabic-English contracts, with the Arabic version controlling in any employment dispute.
What maternity leave applies in Egypt?
Egyptian employees are entitled to 90 days of maternity leave under Labour Law No. 12/2003, funded by the employer. Maternity leave may be taken up to 3 times across the employee’s tenure with the same employer.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Egypt’s social insurance transition, progressive income tax system, Arabic contract requirements, and Labour Law No. 12/2003 obligations create a payroll compliance environment that demands current local knowledge. Africa Deployments’ PEO Egypt service provides the co-employment infrastructure, NOSI compliance management, and bilingual Arabic-English payroll administration that international businesses need to manage their Egyptian team compliantly.
Reviewed by: Africa Deployments Compliance Team
