Cost of an employee in Egypt (2026)
What an employee really costs an employer in Egypt: gross salary plus mandatory employer social contributions.
On a gross salary of EGP 30,000 per month in Egypt, an employer pays about EGP 35,625 in total once mandatory employer social contributions of 18.8% on top of the gross are included.
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How salary is taxed in Egypt
Income tax in Egypt is progressive: marginal rates rise from 10% to 27.5% as income grows.
Employees also pay social contributions of around 11% of gross salary.
A tax-free allowance of about EGP 20,000 per year is deducted before income tax.
The standard VAT rate is 14%.
| Annual taxable income | Tax rate |
|---|---|
| Up to EGP 40,000 | 0% |
| Up to EGP 55,000 | 10% |
| Up to EGP 70,000 | 15% |
| Up to EGP 200,000 | 20% |
| Up to EGP 400,000 | 22.5% |
| Up to EGP 1,200,000 | 25% |
| EGP 1,200,000 and above | 27.5% |
Frequently asked questions
What does it cost to employ someone in Egypt?
On top of the gross salary, an employer in Egypt pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026