PEO in Egypt - A New Road to Expansion | INS Global
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PEO in Egypt

Hire Globally, Pay Locally, Expand Effortlessly

INS Global provides innovative PEO (Professional Employer Organization) and EOR (Employer of Record) solutions to companies worldwide who need to outsource their HR functions and expand their operations while staying efficient, secure, and successful.

A PEO in Egypt acts as a local partner in the target market, providing HR services for your employees. This allows you to operate safely in Egypt without going through lengthy and complicated steps to form your own separate entity in the country.
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PEO in Egypt - Summary

What are the Advantages of Using a Professional Employer Organization (PEO) in Egypt?

Stay Compliant with Local Regulations at All Times

INS Global provides expert legal advice from counselors with over 15 years of experience in international and local regulatory compliance

Save On All Unnecessary Spending

Cut down on setup fees, staff, space rental, and lost time

Prioritize Your Company Growth Goals

Focus on what matters to your success in Egypt while INS Global’s teams of experts take care of all your HR needs

Accelerate Your Market Entry Plans

Why spend months planning and organizing your entry into Egypt when everything can be arranged in a matter of days?

Minimize Your Company Structure

Fulfill all your HR requirements in Egypt through a single point of contact that is available to offer support and guidance at any time

What Kind of Advantages Does a PEO Bring Over Company Incorporation in Egypt?

Company incorporation in a foreign country can be a costly and messy process, often requiring months of setup time. In contrast, partnering with a PEO in Egypt can have you up and running in a matter of days, all while covering the needs of your employees that would otherwise require an entire team or department of HR professionals to manage.

A PEO:
  • Gives you access to otherwise inaccessible local networks and resources
  • Eliminiates potentially costly legal mistakes
  • Saves you money on setup costs and overheads
  • Gets you set up and working in Egypt in less than a week
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testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How does a PEO in Egypt Work with You?

INS Global’s Egypt PEO satisfies your HR requirements and gets you started in the market through 4 simple steps:

  1. You meet with one of our advisors to discuss your situation and needs. They provide you with a tailored service plan.
  2. Our PEO structure in Egypt provides a legal entity for your employees to be hired or transferred into the country.
  3. Our HR outsourcing specialists take on the responsibility for all HR functions your employees in Egypt require
  4. You and your employees begin operations in Egypt on schedule while we manage the rest

How Do International PEOs (Professional Employer Organization) and Global EORs (Employer of Record) Differ in Egypt?

To choose a service type that will most efficiently meet your needs, it’s useful to understand the differences between how PEOs and EORs perform HR functions for your employees.

  • A PEO is a third-party company that provides HR functions for your employees in Egypt. In this case, the service agreement is made between your company and INS Global.
  • An EOR is a different kind of third-party company that hires your employees in Egypt on your behalf and provides HR functions for them as they would to their own employees. In this case, the EOR service provider makes a contract directly with the employee as directed by you.

INS Global offers both PEO and EOR solutions in Egypt according to whichever one is best for your needs.

Labor Law in Egypt

Employment Contracts in Egypt

Contracts in Egypt must be made in writing, in the Arabic language, with 3 copies (with one copy sent to the Social Insurance Office).

Contracts in Egypt can be either definite or indefinite, with special stipulations for canceling definite contracts if they continue for longer than 5 years.

Egypt has a minimum monthly wage which is currently 2,400 Egyptian pounds but is expected to be raised in 2022.

Working Hours and Overtime in Egypt

The maximum number of hours that an employee can work is 48 hours per week in a 6-day week. Including breaks, an employee cannot work for longer than 10 hours in a single day (except in the case of seasonal work).

In special cases where overtime is permitted, employees must be remunerated at 135% standard salary (or 170% for nighttime overtime hours).

Holidays and Annual Leave in Egypt

There are 13 days of annual public holiday in Egypt.

Work hours on a public holiday must be remunerated at 200% standard salary.

Workers in Egypt are entitled to a standard 21 days of annual paid leave. After 10 years with a company, this is raised to 30 days.

Sick leave in Egypt

Employees who can provide medical proof of sickness are entitled to 75% of their salary for the first 90 days, and 85% for the next 90 days.

Maternity/Paternity Leave in Egypt

Maternity leave in Egypt is 3 months. During this time, female employees may receive 75% of their salary through maternity benefits.

There is no mandated paternity leave in Egypt.

Employers are not required to provide specific parental leave. However, mothers in large companies are entitled to take unpaid leave during the first 2 years of their child’s life.

Tax Law and Social Contributions in Egypt

The corporate tax rate in Egypt is 22.5%.

Personal income in Egypt is taxed progressively at 2.5-25% on amounts between EGP15,000 to EGP400,000.

Both employees and employers in Egypt are expected to contribute toward employee Social Insurance. This is calculated at 11% (Employee) and 18.75% (Employer) based on the employee’s standard salary.

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.