Employer of Record in Egypt

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
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Why companies build teams in Egypt

Lundi's Egyptian base — Cairo for technology, BPO, and English-fluent back-office; Alexandria as a secondary hub. Built for companies needing English-fluent talent serving European or US customers at meaningfully lower cost than Eastern Europe — accepting currency volatility and Arabic-language requirements for some roles.

Languages

Modern Standard Arabic

Payroll Frequency

Monthly

Currency

EGP

Capital City

Cairo

Employer Tax Rate

27.00%

Egypt has built a credible English-language services and technology sector concentrated in Cairo — particularly for back-office, BPO, customer success, and growing software development serving European, Middle Eastern, and US customers. Cairo professional English among university-educated Egyptians is reliably strong. Employer costs run ~26% above gross (social insurance). Senior English-fluent roles run 50–70% below Polish or Portuguese equivalents. Strong fit for English-language operations needing European time-zone alignment at substantially lower cost than Eastern Europe. For companies building teams of 10+, not individual hires.

Why companies build teams here

Egypt has built a credible English-language services and technology sector — Cairo concentrates the senior English-fluent professional talent. Cairo's tech sector has grown substantially over the past 15 years (Fawry, MNT-Halan, plus international tech presence — IBM, Microsoft, Vodafone, Orange).

Two primary hubs.

Cairo (Greater Cairo, including New Cairo, Smart Village, and Maadi) concentrates virtually all professional employment. Smart Village (Sheikh Zayed) and New Cairo are the technology and corporate concentration areas. Strong fit for software development, BPO, customer success, finance operations, and back-office serving European, Middle Eastern, and US customers.

Alexandria is the secondary hub — historically commercial/shipping but with growing technology presence. Lower cost than Cairo (typically 10–20% below).

Operating context. Egypt is on EET (UTC+2, with DST observed since 2023 — EEST UTC+3 in summer). Full European working-hours overlap; early-morning overlap with US East Coast. English proficiency among Cairo university-educated professionals (particularly AUC — American University in Cairo, GUC — German University in Cairo alumni) is strong; general operations and customer-facing roles vary. Arabic is required for most local-market and customer-facing-MENA roles. Egypt vs Philippines: Philippines wins on English fluency average and US time-zone overlap; Egypt wins on European time-zone alignment and lower cost. Egypt vs Poland: Egypt offers significantly lower cost (~60% cheaper at senior tier); Poland wins on engineering ecosystem maturity and EU compliance.

Employer cost reality. Employer social insurance contributions run ~26% above gross (covering pension, health, and various social programs combined). Mandatory: 21 days annual leave after 1 year service, paid sick leave, and various statutory benefits. All-in employer cost typically lands ~30–35% above gross. Mid-level software engineers in Cairo run EGP 25,000–60,000/month gross ($500–$1,200); senior engineers EGP 50,000–120,000 ($1,000–$2,400); engineering leads EGP 90,000–200,000 ($1,800–$4,000) — exceptional cost for English-fluent engineering quality.

Employment Structure: EOR, Entity, or Build–Operate–Transfer

Egyptian employment is governed by the Labour Law (Law No. 12/2003) and recent updates including the Investment Law (Law No. 72/2017). The system is moderately protective with structured termination procedures.

EOR works well up to 20–30 headcount. Lundi's Egyptian employment infrastructure handles social insurance registration (~26% employer contribution covering pension, health, and social insurance combined), Egyptian Tax Authority withholding, statutory leave administration (21 days annual leave minimum after 1 year), and labour law compliance. Egypt's standardized employment framework supports relatively high EOR ceilings.

Local entity (LLC or branch) makes sense at scale or for free zone / investment law structures. Egyptian LLC setup is workable (~2–3 months). Lundi's BOT pathway can guide entity establishment.

Investment Law (Law 72/2017) incentives. Qualifying investments in specific sectors and geographic zones (Free Zones, Special Economic Zones, investment zones) receive significant incentives: CIT reductions, customs duty exemptions, fast-track licensing, and other benefits. For technology services and BPO operations, these structures meaningfully improve unit economics.

Free Zones (Public and Private). Egyptian Free Zones (particularly Cairo, Suez, and various technology zones) offer full CIT exemption, customs benefits, and 100% foreign ownership for qualifying operations. Particularly relevant for export-services and technology operations serving non-Egyptian customers.

Currency considerations. The Egyptian pound (EGP) has historically been managed but has experienced significant devaluations (~50% in 2022–2024). International employers typically structure USD-pegged or USD-equivalent compensation for senior roles to manage attrition. Lundi handles structuring guidance.

Why HRBP infrastructure matters in Egypt. Performance management, social insurance compliance, and termination procedures benefit from Arabic-fluent, locally-literate operators. Every Lundi Egypt team includes a named HRBP from day one.

Cost of Employment in Egypt

In Egypt, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in Egypt below.

Talk to us about Egypt

Employer Tax Costs in Egypt

Employers in Egypt can pay up to 27% in social contributions.

Employee Income Taxes in Egypt

Employees in Egypt pay 0% to 25% in taxes depending on their income bracket. Employees also pay 14% in social security contributions.

Employee Probation in Egypt

The probationary period in Egypt is three months.

Employee Overtime in Egypt

Employees in Egypt work eight hours per day, 48 hours per week. Overtime work is paid at the rate of 135% of an employee’s regular pay during daytime hours.If working on a rest day, an employee is entitled to 200% of their regular pay and an additional day of rest in lieu of the working day. If working on an official holiday, the employee is entitled to 300% of their regular pay.

Employee Notice in Egypt

The notice period in Egypt depends on the length of the employee's service. If an employee has less than 10 years of service, two months notice is required. If an employee has been with a company for more than 10 years, three months notice is required. 

Termination in Egypt

In Egypt, it’s difficult for employers to terminate an employment contract before the end of the contract. This is considered wrongful termination unless any of the reasons below are met:A “fundamental breach” of contract (The employer does not pay any compensation)Poor performance that is documented (The employer does not pay any compensation)Redundancy (The employer pays a reduced compensation to the employee)For termination without a justified cause, there are two scenarios:Fixed-term contracts: Employers must pay the employee an amount equal to what they would have received if they would have fulfilled their employment contractIndefinite contracts: An amount no less than two months' salary for each year that the employee was with the employer

How Lundi works in Egypt

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.