What Is an Employer of Record in Egypt?
An Employer of Record (EOR) in Egypt is a locally registered company that becomes
the legal employer of your Egyptian workforce. It lets companies based anywhere
hire people in Cairo, Giza, Alexandria, or anywhere else in the country without
registering a company with GAFI, opening an Egyptian bank account, or establishing
a Labor Office file.
The EOR takes on the statutory employer duties, including Arabic employment
contracts, monthly EGP payroll, salary tax withholding, social insurance
registration and contributions, statutory leave, the mandatory annual increase,
internal work regulations, and lawful termination. You keep full control of the
employee's role, priorities, and performance.
This Model Works Especially Well When:
- You want to build an engineering, support, or shared services team in Egypt without a local subsidiary.
- You already have contractors in Egypt who look like employees and need converting before the exposure crystallizes.
- You are testing the Egyptian market and do not want a three to eight week incorporation on the critical path.
- You need Arabic-language delivery capability for MENA customers and want the team employed properly.
- You want the cost, notice, and termination position modeled accurately before you make offers.
Komp delivers this as part of a single workforce platform, so your Egyptian
employees sit alongside contractors, EOR workers, and direct employees in other
countries, governed by the same data, workflows, and controls.
How Komp’s Employer of Record Works in Egypt
Komp becomes the legal employer for your Egyptian team members and takes on their
statutory liabilities, while you run the work. Here is what that looks like in practice.
Skip the GAFI incorporation file, apostilled and translated parent-company
documents, capital deposit certificate, commercial register extract, tax card,
social insurance establishment file, and Labor Office registration. Komp's
existing Egyptian infrastructure lets you make offers as soon as you find the
right person.
Komp Activate runs onboarding, Arabic contracts, statutory registrations, and
benefits; Komp PayOps runs EGP payroll with PAYE and social insurance; Komp
TimeOps tracks working time and leave; and compliant offboarding, including
notice, settlement, and deregistration, closes the loop in one flow.
Komp Workforce gives HR, Finance, and Legal a single source of truth for Egyptian
and global headcount, covering payroll status, fully loaded employer costs, leave
balances, contract types, statutory increase dates, and compliance alerts, with
audit trails built in.
See How It Works →
What Komp Handles Under EOR in Egypt
Komp manages every part of the Egyptian employment relationship so your team can
focus on the work, not the paperwork.
Compliant Arabic employment contracts
We issue contracts in Arabic that meet Labor Law No. 14 of 2025 and are executed
in the required counterparts, setting job title, wage, working hours, probation,
notice, and leave. Under the new law an indefinite term is the statutory default,
and an unwritten contract or work continuing past expiry converts to indefinite,
so getting the contract right at the outset materially changes your position later.
Labor Office and social insurance registration
We maintain the establishment file and register each employee with the National
Organization for Social Insurance on hire, and file the annual employee list with
the Labor Office. Registration at an understated wage is a common Egyptian
practice and a direct source of penalties and pension claims; Komp registers on
actual pay.
EGP payroll and non-cash disbursement
Komp PayOps calculates monthly EGP payroll and pays employees by
bank transfer. Egypt requires non-cash salary payment for employers above defined
size and payroll thresholds, with penalties calculated on the amount paid in cash,
so this is a compliance requirement rather than a convenience.
Salary tax withholding and filings
We withhold salary tax monthly under the progressive resident bands, remit it on
the statutory deadline, file quarterly salary tax statements, and file the annual
reconciliation, applying the personal exemption and the deduction for the
employee's own social insurance contribution.
Social insurance contributions at the correct base
We apply the employer and employee rates to the insurable wage up to the statutory
minimum and maximum, which are indexed upward every January. Because the ceiling
applies, the employer contribution becomes a fixed monthly amount above a certain
salary, which Komp shows explicitly in your cost model.
The statutory annual increase
Egyptian law entitles every covered employee to an annual periodic allowance of
not less than a set percentage of the insurable wage, with a monetary floor. Komp
schedules and applies it, so it appears in your forecast rather than arriving as
a surprise cost line.
Internal work regulations and HR policy
Employers with ten or more staff must hold internal work regulations ratified
through the Labor Directorate, covering performance measures, pay equity, leave,
remote and hybrid working, anti-harassment, non-discrimination, and disciplinary
grounds. Komp maintains a compliant regulation for the employing entity so your
team is covered from day one.
Offboarding and termination
We manage exits with the correct three-month notice, the documented justification
the law requires, union consultation and objective selection criteria where a role
is being reduced, and full settlement. Where a dismissal is disciplinary, we
advise on the court-supervised route rather than acting unilaterally.
See How It Works →
Employer of Record vs Entity Setup in Egypt
| Criteria |
Employer of Record (Komp) |
Own Egyptian Entity |
| Best suited for |
Market entry, delivery and engineering pods,
contractor conversion, small to mid-sized headcount
|
Large permanent operations, regulated activity,
or a delivery center at real scale
|
| Time to hire |
As soon as the candidate accepts |
Typically three to eight weeks to incorporate,
longer for regulated sectors, before any hire
|
| Upfront cost |
No setup cost; predictable per-employee fee |
Incorporation, document legalization and translation,
capital deposit, bank account, and local advisers
|
| Statutory filings |
Handled by Komp in Arabic |
Monthly payroll tax and social insurance,
quarterly tax statements, annual reconciliation
and employee list
|
| Internal work regulations |
Held and maintained by Komp's entity |
Your obligation once you reach ten employees,
ratified through the Labor Directorate
|
| Compliance ownership |
Managed by Komp with AI-assisted monitoring
and human review
|
Your responsibility, including labor, social
insurance, tax, and non-cash payment rules
|
| Exit |
Offboard employees and stop |
Liquidation, plus the full termination exposure
for every employee
|
| Workforce visibility |
Egyptian data unified with your global workforce
in one platform
|
Often a separate local payroll bureau and
a separate HR system
|
Employer of Record Cost in Egypt
EOR pricing in Egypt varies by provider, service scope, and team size. The
comparison worth running is not the fee alone. It is the fee against the
incorporation, local accounting, payroll bureau, and legal costs of running your
own Egyptian entity, plus the termination exposure that sits behind every
indefinite contract.
Komp pricing is built around your actual workforce model. You pay a clear,
predictable fee that covers employment administration, Arabic contracts, EGP
payroll, salary tax and social insurance, statutory filings, compliance
monitoring, and support. There are no hidden charges, no FX markups on payroll,
and no need to coordinate a separate payroll bureau, tax adviser, and employment
lawyer.
What Shapes Your Price
-
Number and type of workers:
employees, contractors, and EOR hires across your footprint.
-
Salary level relative to the insurance ceiling:
employer social insurance becomes a fixed monthly amount above the cap,
which changes the cost curve for senior hires.
-
Contract type:
indefinite is now the statutory default, and it carries a different
termination profile from a fixed term.
-
Benefits scope:
private medical cover, life insurance, and transport or allowance structures
beyond the statutory minimum.
-
Integrations and reporting:
HRIS, ERP, and finance system connections.
Why EOR Delivers Strong ROI
-
Faster revenue:
your Egyptian hire starts contributing weeks before an entity could have
been incorporated.
-
Lower overhead:
no registration, office lease, local accountant, payroll bureau, or
in-country HR staff.
-
Lower risk:
no misclassified contractors, no understated insurable wage, and no
unratified work regulations.
-
Less admin:
one platform, one invoice, one partner for Egyptian employment.
Request Your Custom Egypt Pricing →
Who Should Use an EOR in Egypt?
Technology and engineering teams
Build a development, QA, data, or platform pod in Cairo or Alexandria at a cost
base that is a fraction of Western Europe or the Gulf, without the overhead of a
subsidiary supporting ten or twenty people.
Global business services and offshoring
Stand up finance, procurement, customer operations, or shared services delivery
in one of the fastest-growing offshoring destinations in the region, with Arabic,
English, and French capability in the same labor market.
Companies with contractors already in Egypt
If people have been invoicing you monthly for a year, working your hours, and
using your systems, the arrangement is employment in substance. Converting
through an EOR closes the exposure on a controlled timeline.
Companies serving MENA customers
Place Arabic-speaking commercial, support, and delivery staff in the region's
largest talent pool, in a time zone that covers Europe, the Gulf, and Africa
within a single working day.
Companies testing the market
Hire a small team, prove the operating model, and decide on an entity with
evidence rather than a forecast. Komp supports the transition when the case is made.
HR and Finance leaders
Get predictable costs, consolidated invoicing, visible statutory increase
obligations, and audit-ready records for every Egyptian hire.
Why Komp Is Different from Generic EOR Providers
Many providers can put an Egyptian employee on payroll. Komp is built as workforce
infrastructure, combining AI intelligence, owned payment rails, and human
governance so you can grow in Egypt with confidence.
AI Agent Swarms with human control
Autonomous agents continuously check payroll, classification, contracts,
statutory increase dates, and regulatory change. Recommendations are surfaced
for review before anything is executed: autonomous intelligence, human control.
Current with Labor Law No. 14 of 2025
The law replaced a statute that had stood since 2003, changed the default contract
type, unified notice at three months, capped probation at three months used once,
and routed disciplinary dismissal through specialized courts. Templates written
for the old law are still circulating. Komp works from the current one.
Internal work regulations already in place
The model internal work regulation became mandatory for establishments with ten
or more employees in August 2026, with a ratification process through the Labor
Directorate and the union. It is the freshest compliance gap in the market, and
one most employers have not yet closed. Komp's entity holds a ratified regulation.
Cost modeled against the insurance ceiling
Quoting Egyptian employer cost as a flat percentage overstates it for mid and
senior salaries and understates the effect of the annual January indexation.
Komp models the actual contribution against the current ceiling and shows the
fully loaded figure.
AES-256 encryption, SOC 2 Type II, ISO 27001, GDPR compliance, role-based access
control, and AWS hosting with multi-region redundancy protect your Egyptian
employee data.
Komp Activate, Komp Workforce, Komp TimeOps, and Komp PayOps connect hiring,
workforce records, time, and pay across Egypt and 150+ countries.
Why Use an Employer of Record in Egypt?
Egypt offers the largest and youngest labor pool in the Arab world, a
government-backed offshoring strategy, and a cost base that has become markedly
more competitive in dollar terms. It also carries a formal, Arabic-language
employment regime that was rewritten in 2025 and is still bedding in. An EOR
makes entering it faster, safer, and lighter on overhead.
Hire before an entity exists
Incorporation in Egypt is a document-legalization exercise before it is a filing
exercise, and realistic timelines run to several weeks. An EOR removes it from
the critical path entirely.
Employ foreign nationals lawfully
A work permit can only be sponsored by a licensed Egyptian establishment, and
foreign staff are capped as a proportion of the workforce. A company with no
Egyptian presence cannot sponsor anyone, whatever the candidate's willingness.
Handle termination before it becomes a dispute
There is no at-will employment, notice is three months either way, disciplinary
dismissal requires a court ruling, and unlawful termination of an indefinite
contract carries compensation of not less than two months' pay per year of
service. Planning for that before hiring is considerably cheaper than discovering
it afterward.
See the real cost of an Egyptian hire
Gross salary is only part of it. Employer social insurance, the mandatory annual
increase, statutory leave, and the notice and termination profile all belong in
the model. Komp makes the fully loaded number visible before you make an offer.
See Egyptian headcount, contract types, and compliance in the same platform as
the rest of your global workforce. No separate vendor, no data silos.
Start Hiring in Egypt →
Egyptian Employment Compliance: What Global Employers Must Manage
Egyptian employers answer to the Ministry of Labor for contracts, work
regulations, and permits, to the National Organization for Social Insurance for
contributions, and to the Egyptian Tax Authority for salary tax. These are the
areas that matter most, and how Komp covers them.
Labor Law No. 14 of 2025
The new labor law entered into force on 1 September 2025, replacing Law No. 12
of 2003, and specialized labor courts began hearing cases from October 2025 with
a tighter disposal period and a mandatory reconciliation stage beforehand.
Employers still operating on templates and assumptions drawn from the old law
are the ones most exposed.
Employment contracts in Arabic
Contracts must be in Arabic and executed in the statutory number of counterparts,
with the employee's own language added for foreign nationals. An indefinite term
is now the default; a fixed term exists only where reasonably agreed in writing,
and work continuing past expiry without renewal converts the contract to indefinite.
Probation and notice
Probation is capped at three months and may be imposed only once for the same
employee. Notice is unified at three months for either party regardless of length
of service, which is longer than most global employers assume and must be built
into workforce planning.
Termination and dismissal
Disciplinary dismissal requires a court ruling rather than an internal decision.
Non-disciplinary termination requires written justification, a financial
settlement, union consultation, and transparent, objective selection criteria
where roles are being reduced. Pre-agreed or undated resignations are void, and
a resignation must be ratified with a withdrawal window for the employee.
Internal work regulations
Every private establishment with ten or more employees must hold internal work
regulations ratified through the Labor Directorate and the union, covering
performance measures, pay equity, leave, remote and hybrid work, anti-harassment,
non-discrimination, and disciplinary grounds. This obligation took effect in
August 2026 and is the newest live compliance requirement in the market.
Social insurance
Social Insurance under Law No. 148 of 2019 is mandatory for Egyptian and foreign
employees alike, subject to bilateral treaty exemptions. The employer contributes
at a statutory percentage of the insurable wage, the employee at a lower one,
and both the minimum and maximum insurable wage are indexed upward every January
under a multi-year schedule. Registering staff at an understated wage attracts
substantial penalties and compounds into later pension and settlement claims.
Salary tax withholding
Salary tax is withheld monthly by the employer under progressive resident bands,
with an annual personal exemption and a deduction for the employee's own social
insurance contribution. Payment is due shortly after month end, with quarterly
salary tax statements and an annual reconciliation.
The mandatory annual increase
Every covered employee is entitled by statute to an annual periodic allowance of
not less than a set percentage of the insurable wage, subject to a monetary floor
set by the National Wages Council. This is a recurring, non-negotiable cost that
many foreign employers omit from their model entirely.
Non-cash salary payment
Private-sector employers above defined employee-count or monthly-payroll
thresholds must pay salaries by bank credit, transfer, card, or approved mobile
payment rather than cash, with penalties calculated as a percentage of any amount
paid in cash and the same penalty applied to splitting payments to stay under
the threshold.
Leave and working time
Annual leave runs from fifteen days in the first year to twenty-one days
thereafter and thirty days for employees with long service or above a defined
age, with additional entitlement for employees with disabilities. Maternity
leave is four months, usable up to three times during service. Sick leave is
certified and funded through the social insurance system rather than paid
directly by the employer, and an employee cannot be dismissed for illness until
the entitlement is exhausted.
Foreign worker permits and the local quota
Foreign nationals require a work permit issued by the Ministry of Labor, tied to
the named establishment, valid for a defined period and renewable only if filed
ahead of expiry. Foreign staff are limited to a defined proportion relative to
Egyptian employees, with variations for investment-law projects and free zones.
Employing without a permit attracts penalties multiplied by the number of workers
involved, and enforcement has been active through 2026.
Since August 2026, every Egyptian establishment with ten or more employees
must hold a ratified internal work regulation.
The model internal work regulations issued under the new labor law took
effect in mid-August 2026 and apply to every private establishment employing
ten or more people. The regulation must cover performance measures, pay
equity, leave, remote and hybrid working, anti-harassment, non-discrimination,
a principle preventing regression from existing entitlements, and the grounds
and procedure for discipline, and it must be ratified through the Labor
Directorate and the relevant union on a defined timetable.
Because the requirement is only months old, it is the single most common gap
in Egyptian employer compliance right now, and it sits alongside a
disciplinary process with short, absolute deadlines: investigations must
start and conclude within set windows, and a sanction imposed late is
unenforceable regardless of the merits. Hiring through Komp means this
obligation sits with an establishment that already holds a ratified
regulation, rather than with a business discovering the requirement after
its tenth hire.
Employer of Record Coverage Across Egypt
Egyptian professional hiring concentrates in the greater Cairo area and
Alexandria, with a deliberate government push to spread delivery work into the
wider governorates. Komp lets you hire compliantly anywhere in the country, with
the same contracts, payroll, and compliance workflows.
Employer of Record in Cairo
The commercial and administrative center, and the deepest talent market in the
country, spanning corporate headquarters, financial services, consulting, and
the largest concentration of technology and offshoring employers in Egypt.
Employer of Record in Giza and Smart Village
Smart Village and 6th of October City form Egypt's established technology cluster,
home to multinational delivery centers, telecoms, and software engineering teams,
with strong graduate supply from nearby universities.
Employer of Record in New Cairo and the New Administrative Capital
The eastern growth corridor, absorbing corporate relocations, government
functions, and new-build campuses, and increasingly the default location for
large delivery operations setting up today.
Employer of Record in Alexandria
The Mediterranean port city and second-largest urban economy, strong in
logistics, trade, petrochemicals, and increasingly the dual-city technology and
shared services base at lower cost than Cairo.
Employer of Record across the governorates
Egypt's offshoring strategy explicitly extends delivery capacity beyond Cairo
into cities such as Mansoura, Assiut, Aswan, and the Delta, widening the talent
pool and easing wage pressure for teams willing to hire remotely. Whether your
Egyptian team sits in a Cairo office, a Smart Village campus, or works remotely
from the governorates, Komp applies the labor law consistently, issues Arabic
contracts, runs EGP payroll with correct withholding, registers employees at
their actual wage, and tracks statutory obligations, so adding a new location
never adds new compliance work for you.
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