Egyptian payroll in 2026: a guide for employers
What comes off an Egyptian salary each month, how income tax and social insurance are worked out, and what the employer pays on top, with a worked example.
The short answer
Each month an employer in Egypt deducts three things from the gross salary: the employee’s social insurance (11% of the insurable wage), the martyrs’ fund (0.05% of gross) and income tax. On top of the salary, the employer pays 18.75% social insurance.
Income tax is worked out on a yearly figure: gross salary minus employee insurance, times 12, minus the EGP 20,000 personal exemption. That amount is taxed in brackets from 0% to 27.5% and divided by 12 for the payslip.
Figures below are the rules keyt HR uses, last checked on 10 October 2026. Confirm them with your accountant before you pay salaries.
Social insurance
Under Social Insurance Law 148/2019, the employee pays 11% and the employer 18.75% of the insurable wage, the wage registered with social insurance. It is kept between a minimum and a maximum that usually rise every January.
For 2026 the insurable wage is between EGP 2,700 and EGP 16,700 a month. Above the maximum, insurance is capped: the employee pays at most EGP 1,837 a month, and the employer EGP 3,131.25.
Income tax brackets
Brackets apply to annual taxable income, after the personal exemption (Income Tax Law 91/2005 as amended by Law 7/2024).
| Annual taxable income (EGP) | Rate |
|---|---|
| 0 – 40,000 | 0% |
| 40,000 – 55,000 | 10% |
| 55,000 – 70,000 | 15% |
| 70,000 – 200,000 | 20% |
| 200,000 – 400,000 | 22.5% |
| 400,000 – 1,200,000 | 25% |
| Above 1,200,000 | 27.5% |
Higher earners lose the lower brackets. Above EGP 600,000 of annual taxable income the first brackets are taxed at a higher rate, step by step, and above EGP 1,200,000 everything up to 1,200,000 is taxed at 25% before the 27.5% bracket.
Worked example: EGP 10,000 a month
- Employee social insurance: 11% of 10,000 = EGP 1,100
- Monthly taxable income: 10,000 − 1,100 = EGP 8,900
- Annual taxable income: 8,900 × 12 − 20,000 = EGP 86,800
- Tax: 0% on the first 40,000, 10% on 15,000 (1,500), 15% on 15,000 (2,250), 20% on 16,800 (3,360) = EGP 7,110 a year, or EGP 592.50 a month
- Martyrs’ fund: 0.05% of 10,000 = EGP 5
- Net pay: EGP 8,302.50. Employer insurance: EGP 1,875, so the salary costs the employer EGP 11,875
What changes the taxable amount
- Overtime and taxable bonuses or allowances increase it
- Attendance and lateness deductions and taxable deductions reduce it
- Loan installments come off net pay; they do not change the tax
- People who join or leave mid-month are paid for the days they were employed
Monthly payroll checklist
- Update the insurable wage limits every January
- Close attendance and approve overtime before you run payroll
- Have a second person check and approve the run, then lock it
- Give every employee a payslip they can read, in Arabic if they prefer
- Pay through your banks’ transfer files, and keep a record of who changed what
Egyptian payroll, worked out for you every month
keyt HR calculates tax, insurance and the martyrs’ fund for every employee from their attendance, overtime and loans, with a second person approving the run.
keyt HR: HR, attendance and payrollSee it working