Egypt's burgeoning talent pool of highly skilled graduates in technical and business fields makes it an appealing choice for companies seeking full-time and freelance remote employees.
Located in the northeast corner of Africa, Egypt is known for iconic landmarks like the Great Pyramid of Giza and the Nile River. The country also showcases impressive economic potential driven by an educated population with many of the in-demand professional skills sought by companies building global teams.
Key Takeaways:
- Egypt's economic potential and educated workforce make it attractive for companies seeking to hire employees worldwide.
- Strong employee protections under Egyptian labor law ensure fair treatment of workers.
- While a digital nomad visa isn't available, Egypt's affordability and culture attract global remote talent seeking unique, budget-friendly experiences.
Advantages of Hiring in Egypt
Many Egyptians are proficient in English, and a growing number of college graduates possess degrees in technical and business fields. As a result, Egypt is home to a highly educated population, many of whom are seeking remote employment opportunities.
Here are some quick facts about Egypt:
- Language: Arabic
- Currency: Egyptian Pound (EGP)
- Capital City: Cairo
- Population: 106.4 Million
- Cost of Living Rank: 126th
Investing in Egypt's Remote Work Infrastructure
As Egypt rolls out new incentives to promote entrepreneurship and facilitate remote work, companies worldwide are increasingly seeking skilled Egyptian professionals and contractors to enhance their global workforce.
Some common remote job sectors in Egypt include:
- UX Design
- Sales
- Copywriting
- Customer Service
- Software Development
- Virtual Assistance
Employment Laws: Hiring Compliantly in Egypt
Employment Contracts
There are three primary types of employment contracts in Egypt.
- Indefinite Term: With no predetermined end date, this type of contract is in effect until the employer or the employee decides to terminate it.
- Fixed Term: These contracts contain a specific end date agreed upon in advance by both parties, and there is no legally mandated minimum term.
- Performance of Specific Tasks: As the name implies, this contract type is utilized to complete a specific project or task, and the business relationship ends once the work is complete.
Working Hours & Pay
Although it may vary, Egypt's standard workweek is 40 hours, 8 hours per day. Any work performed beyond that is considered overtime, and employees are paid at a rate of 135% of their standard pay.
Nighttime overtime is paid at 170%, and employees receive double their standard wage if they work on an official holiday.
As of May 1, 2024, the monthly minimum wage is EGP 6,000.
Probation Periods
Probationary periods are optional and can last no longer than three months.
Employer Taxes
Employers pay 18.75% of each employee's gross salary in social security taxes and a 1% tax for unemployment benefits.
Termination Process & Severance Pay
Egyptian labor law provides strong protections for employees, making it challenging for employers to terminate employment contracts prematurely.
Terminating an employee before the end of their contract is considered wrongful dismissal unless it's justified by specific circumstances, such as:
- Documented poor performance: If an employee consistently underperforms and this is properly recorded, the employer may terminate the contract without compensation.
- Redundancy: If a role is no longer needed, the employer can terminate the contract, but reduced compensation is typically required.
If an employer terminates a contract without a justifiable cause, they may be legally obligated to provide severance pay, which is calculated based on the type of contract:
- Fixed-term contracts: The employee is entitled to the full salary and benefits they would have earned had the contract run its course.
- Indefinite contracts: Employees are entitled to at least two months' salary for every year they were employed.
Paid Leave Laws in Egypt
Vacation and Holiday
Full-time employees receive 21 days of paid annual leave after one year of service.
Employees who have worked for the company for at least six months but less than one year are entitled to a pro-rated amount of leave.
If the employee is over 50 or has 10+ years of service with a company, they are eligible for 30 days of paid annual leave.
There are several paid public holidays in Egypt, including:
- Sinai Liberation Day
- Revolution Day
- Islamic New Year
- Sham El Nessim
- National Day
Sick Leave
Employees in Egypt are entitled to 180 days of paid sick leave each year, paid at 75% of the regular salary for the first 90 days and 85% for the remainder.
Maternity Leave
Pregnant female employees receive 90 days of paid maternity leave. Mothers can also take up to two years of unpaid leave for each child.
Paternity Leave
Paternity leave is not mandatory in Egypt.
Why Digital Nomads Love Egypt
Egypt doesn't offer a digital nomad visa. However, digital nomads can explore options like the 5-year multiple-entry visa for temporary stays.
Egypt's allure for remote talent lies in its unique blend of affordability and cultural experiences. The cost of living is significantly lower than in many Western countries, allowing for a comfortable lifestyle on a freelancer's budget.
Cairo, the capital, boasts a dynamic cultural scene, historical landmarks, and strong internet connectivity, making it a practical choice for digital nomads. Dahab, a small coastal town on the Sinai Peninsula, attracts those seeking a more laid-back atmosphere with natural beauty, watersports, and a close-knit community of expats.
How to Pay Remote Workers in Egypt
There are several options for paying remote talent in Egypt, with pros and cons to each.
Bank wire transfers, while reliable, can involve high fees and slow processing times. Services like Wise offer faster transfers and more favorable exchange rates but may have limitations on transferable amounts.
Emerging options like cryptocurrency provide advantages such as faster transactions and lower costs but also come with challenges, such as market volatility and regulatory uncertainty.
For businesses seeking a streamlined approach to global payroll, partnering with an EOR can alleviate the complexities of managing international payments and ensure compliance with local labor laws.
Hire in Egypt with RemoFirst
As an Employer of Record (EOR), RemoFirst helps companies employ top talent in more than 180+ countries, including Egypt.
EORs act as the legal employer for your international remote workers, allowing you to hire employees globally without the need to establish a local entity or learn complicated local laws.
By partnering with an EOR, you can:
- Simplify the hiring process and reduce administrative burdens
- Ensure compliance with local labor laws and regulations
- Manage payroll and benefits more efficiently
- Reduce costs and risks associated with global employment
- Improve employee engagement and retention
Book a demo today to learn more.
