Hiring in Egypt

The terms set out role, salary in EGP, working hours, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Arabic is mandatory and prevails in a dispute, with a translation for employees who do not speak it. The contract is drawn up in four copies, including one each for the social insurance office and the labour office.

Fixed-term contracts are permitted, but they become indefinite if work continues after expiry without a new written contract, and most EORs default to indefinite terms.

Set probation from day one. It cannot run past three months or be restarted, including on a new contract with the same employer.

Three months is short for senior roles, and the EOR, not you, carries the dismissal risk once it ends. Agree review points before you confirm a start date.

Work on a weekly rest day or public holiday earns double pay or a substitute day off, and total daily hours are capped.

Many companies contract a 40-hour, five-day week by agreement. Spell out in writing whether hours between 40 and 48 attract the overtime premium.

Leave rises to 30 days after 10 years of service. The government often adds extra days around the Eid holidays and moves some midweek holidays to a Thursday, so plan on more days off than the official count.

Paid sick leave runs on a tiered pay scale, largely funded through social insurance. Maternity leave is 4 months, available from day one and up to three times, and is partly covered by social insurance, so confirm which side the EOR carries.

Either side may end an indefinite contract on 3 months' written notice, but the employer still needs a legitimate reason. Unjustified dismissal costs at least two months' wage per year of service, and misconduct cases generally go through the specialised labour courts. Ending a fixed-term contract early costs one month's wage per year of service.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Mutual termination on the Ministry of Labour's standard form is often the cleanest exit. Where that is not possible, keep a documented reason.

Private medical cover and group life are standard for professional roles even though they are not mandatory. Universal Health Insurance adds a separate employer contribution in governorates where the scheme is already live.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer social insurance adds 18.75% on top of gross salary, up to an insurable wage cap of EGP 16,700 a month in 2026. That is before the EOR fee, and the cap rises every January.

The annual increment is the trap. The new labour law requires a raise of at least 3% of the insurable wage every year, so build it into your second-year budget.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the quota is counted against the sponsor's headcount, not yours. Security clearance adds to the timeline.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a licence or permit from the Personal Data Protection Centre, not just a lawful basis.

The executive regulations were issued in November 2025 with a one-year compliance window, so ask about the EOR's licensing status. Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation runs through GAFI, the investment authority, but the running cost is the point: audited accounts, tax and social insurance filings, labour office registration and payroll software set an annual floor. The 10% foreign-worker quota also leaves a small new entity little room to sponsor expatriates.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.