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How to hire remote employees in
Hiring in Egypt? That’s excellent. But if your company’s HQ isn’t already in Egypt, things can get complicated—though they don’t need to. Here’s the deal: You can hire your talent as employees, or you can hire them as contractors. Because of Egypt’s labor law structure, there are benefits and disadvantages to each approach.
If you want to successfully hire in
Egypt
, you have two options:
Laws about hiring contractors are significantly more simple in
Egypt
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Egypt
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Egypt
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Egypt
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Egypt
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Egypt than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Egypt.
In Egypt, annual leave is 21 days. Entitlement begins after 6 months of service.
If the employee has been employed for over 10 years, annual leave is 30 days.
Employees over the age of 50 are entitled to 30 days of leave.
There are 13 public holidays.
An employee is able to claim up to 6 months of paid sick leave and must provide a certificate of sickness.
Female employees that have been contributing to social insurance to the past 10 months are entitled to up to 3 months’ maternity leave for each child up to three children and are entitled to 75% of the last salary.
Upon return to the workplace, the woman is entitled to 2- half-hour nursing breaks or a combined hour each day for 24 months after the date of birth.
For workplaces with more than 100 employees, it is mandatory that the employer provide an in-house nursery or is responsible for placing the child in nursery care until the age of schooling.
There are no provisions in the law regarding paternity leave.
If there are more than 50 employees in the company, the mother is entitled to 24 months of unpaid leave for each child.
For employees who have dependents, the ability to work flexible hours is not mandatory, however, in many cases, will be stipulated in the employment contract.
Work-related injury leave: For temporary disability, 100% of the wage is paid from the first day of injury until the employer is cleared to return to work or is declared permanently disabled.
None.
None.
It is very difficult to terminate an employment contract before the expiry date of the contract and is generally considered wrongful termination unless the dismissal is based on a “fundamental breach” of contract which is outlined as follows:
Termination for a definite employment contract without a justified cause: The employer must pay the employee what they would have received if they would have fulfilled their employment contract.
Termination of employment of an indefinite contact without a justified clause: Employer is obligated to pay compensation of no less than 2 month’s salary for each year that the employee served.
In the case of unfair dismissal, compensation shall be agreed upon, however, cannot be less than 2 months’ salaries.
The length of the notice period depends on how long the employee has been in service:
Severance payment is not mandatory in Egypt unless outlined in the employment contract.
Up to 3 months.
A full workday in Egypt is 8 hours.
Overtime is paid at the rate of 135% of the normal pay during daytime hours and 170% during night hours.
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