Employer of Record
in Egypt
You choose the person and direct the work.
We become their legal employer and look after them every month.
You lead the work. We take care of the rest.
An Employer of Record is the legal employer of someone who works for you. We employ your people in Egypt directly, with no middleman, so you don't need a company there.
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You choose the person and set their goals
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You manage their work day to day
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We handle the contract, payroll in US dollars (USD), social insurance and tax
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We take care of HR, leave and offboarding
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We check in every month, with you and with them
Law 14/2025
The work
Employment
Everything it takes to employ someone in Egypt, done for you
All of this comes with every person we employ for you. You get one invoice a month, and each person gets a proper employer in Egypt.
Employment contract
A written contract under Egypt's 2025 Labour Law, reviewed by an international lawyer.
Monthly payroll in USD
We pay their salary every month, in USD.
Social insurance
We register them and pay the monthly contributions, so they're covered.
Income tax
We withhold income tax through payroll and pay it to the tax authority.
Leave and public holidays
Annual leave, maternity leave and public holidays as set by law, tracked for you.
An HR contact
One person at Progwarts your team can go to with any question.
Offboarding
Resignations and terminations handled properly, under the law.
Benefits
Agreed with you. We suggest what's worth adding and push for more.
Monthly check-ins
We ask you about each person's work and ask them what they need.
We stay involved after the hire
Every month we check in with you and with your people, and we act on what we hear. For you, that means problems caught early and people who want to stay.
Monthly feedback, both ways
Every month we ask you how each person is doing, and we ask them what they need. Then we act on both.
Team outings
We organize outings so your people get to know each other and enjoy where they work.
A healthy place to work
We look after the environment your people work in, so they feel safe and appreciated.
Benefits we negotiate for them
Benefits are agreed with you. We suggest what's worth adding and push for a better package for your people.
Move your freelancers
onto proper employment
Many companies start with freelancers in Egypt. But whether someone counts as an employee depends on how the work is done, not on what the contract says. If they work like employees, we can employ them properly.
Same people, a proper contract
They keep working with you as they do now. We become their legal employer, with no middleman.
Paperwork that matches the work
Their contract reflects how they really work for you, and it assigns their work and IP to you.
A better deal for them
Social insurance, paid leave, a salary in USD, and someone who checks in every month.
Employing in Egypt: the essentials
Last reviewed: October 2026
The law: Labour Law No. 14 of 2025
Egypt's new Labour Law was published on 3 May 2025 and has been in force since 1 September 2025. It replaces Law No. 12 of 2003, which older guides still quote. Specialized labor courts have heard employment cases since 1 October 2025, and the implementing decrees are still being issued.
Contracts
Employment contracts must be in writing and in Arabic, in four copies. If a contract also exists in another language, the Arabic text prevails (Art. 89).
Probation
Probation can last up to three months, and an employer can use it only once with the same employee (Art. 90).
Work week and hours
Egypt's weekend is Friday and Saturday. Working hours are agreed with you: your hours, Egypt's, or a mix. Egypt uses daylight saving time, so it's UTC+2 in winter and UTC+3 from late April to late October.
Annual leave
Paid annual leave grows with service (Art. 124):
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15 days in the first year
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21 days from the second year
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30 days after 10 years of service, or from age 50
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45 days for employees with disabilities
Employees can also take up to seven days of casual leave a year, deducted from their annual leave (Art. 128).
Maternity and paternity leave
Maternity leave is four months, up to three times during a person's employment. The new law also gives fathers paternity leave.
Social insurance
Employers pay 18.75% and employees 11% of the insurable wage (Law No. 148 of 2019). The insurable wage has a floor and a cap: from 1 January 2026 it runs from EGP 2,700 to EGP 16,700 a month, so the employer's share is at most about EGP 3,131 a month.
Income tax
Income tax is withheld every month through payroll. Annual rates under Law No. 7 of 2024, after a personal exemption of EGP 20,000:
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0% up to EGP 40,000
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10% from EGP 40,000 to 55,000
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15% from EGP 55,000 to 70,000
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20% from EGP 70,000 to 200,000
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22.5% from EGP 200,000 to 400,000
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25% from EGP 400,000 to 1.2 million
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27.5% above EGP 1.2 million
Ask us to work out the numbers for a specific salary.
Remote and hybrid work
The 2025 law formally recognizes remote and hybrid work. Remote employees have the same rights as office staff, including social insurance (Art. 96-99).
Notice
For contracts with no end date, the notice period is three months, however long the person has worked (Art. 156).
Ending employment
Dismissal without a valid reason costs at least two months' wages for each year of service (Art. 165). A resignation only counts once it's validated at the labor office, and the employee can withdraw it within 10 days.
How to use this summary
This page is a summary to help you plan, not legal advice. Our contracts are reviewed by an international lawyer, and we review this page when the law changes. Questions about a specific case? Talk to us.
Three ways to have people working for you in Egypt
At a glance
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Company in Egypt
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Legal employer
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Social insurance and leave
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Payroll, tax and HR
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Monthly check-ins
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Healthy work environment
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Best for
Freelance
Contractor
They invoice you directly
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Not needed
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Self-employed
- Not included
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They handle it
- Not included
- Not included
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Short projects
With Progwarts
Employer of Record
We employ them for you
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Not needed
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Progwarts
- Included
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We handle it
- Included
- Included
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Long-term hires and large teams
Your own entity
Own company
You set up in Egypt
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Required
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Your company
- Included
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You handle it
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Up to you
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Up to you
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A permanent base in Egypt
What employing someone in Egypt costs
Your monthly cost has four parts: the salary, employer social insurance, the benefits we agree with you, and our fee. We quote our fee per role after a short call.
Social insurance is where many estimates go wrong. The employer pays 18.75% of the insurable wage, and that wage is capped. In 2026 the cap is EGP 16,700 a month, so the employer's share is at most about EGP 3,131 a month, however high the salary. For senior people, that's far less than the 19-27% of salary some sites quote.
Salary, paid in USD
18.75% social insurance, capped
Benefits agreed with you
Our fee, quoted per role
Want your team
in one room?
We provide an office with your branding, like your own HQ, in a premium workspace such as Regus. Your team gets the same experience as your employees at home. It's optional.
Contracts that protect you and your team
Every contract is reviewed by an international lawyer who knows Egyptian and foreign company law. What your team creates for you belongs to you, and EU clients get a data processing agreement (DPA).
- Lawyer-reviewed contracts
- IP assigned to you
- Confidentiality and non-compete clauses
- A DPA for EU clients
Questions about employing in Egypt
Short answers to common questions from companies. For more, see our full FAQ.
No. Progwarts is the legal employer, so you don't need your own company in Egypt. We employ your people directly, with no middleman, and you direct their work.
Yes. An Employer of Record is often the simplest way to employ people in Egypt, even just one. Opening your own company there means setup and ongoing admin. With us, you can employ one person properly now and grow into a larger team when you're ready.
Yes. If people already work for you as freelancers in Egypt, we can employ them under a proper employment contract. They keep working with you as before, and they gain social insurance, paid leave and a monthly check-in with us.
You do. What your team creates for you belongs to you: the employment contract assigns it to you, and it includes confidentiality and non-compete clauses.
Yes. We pay salaries in USD. Benefits are agreed with you, and we push for more where we can.
It depends on the role. If you already know the person, we start on the contract as soon as you're ready. If you need us to find someone, we start the search once we have your brief and send you a shortlist of people we'd recommend.
We follow Egypt's Labour Law No. 14 of 2025. For contracts with no end date, the notice period is three months. If you want to end someone's employment, talk to us first and we'll handle it with you.
Hours are agreed with you: your hours, Egypt's, or a mix. Egypt's weekend is Friday and Saturday.
Know who you want to employ in Egypt? Let's talk.
Tell us about the person and the role. After a short call, we'll send you a quote.