Looking to hire in Egypt

Employees accrue paid sick leave on an anniversary-year basis, with no carry-over of unused sick leave to the next leave year. A medical certificate is required from the first day of sick leave.

Employees in Egypt must submit current-year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior-year expenses are only accepted up to February 1 of the following year.

Phone, internet, and coworking costs can be reimbursed tax-free when properly documented. For all of these, a tax invoice or receipt is required showing when and where the service was purchased, the amount, what it was for, and who provided it, along with the employee’s name where specified.

Work equipment and supplies are generally reimbursed on a non-taxable basis when supported by a tax invoice, receipt, or order confirmation with proof of payment. Documentation must show the date, amount, merchant or service provider, and a clear description of the item or service; for some items, the employee or client name must also appear (an email screenshot with a matching name is accepted where noted).

Most business travel costs can be reimbursed tax-free when backed by appropriate documentation such as tax invoices, receipts, tickets showing the amount, booking confirmations with visible payment, or bank statements where required. Records must show the date, amount, merchant or service provider, and a description of the service; for some items, the employee or employer name must also be visible. Mileage reimbursements are treated differently and are taxable even when documented.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed on a non-taxable basis. A tax invoice or receipt must show the date, amount, merchant, and a brief description of what was purchased.

A range of other business-related costs can also be reimbursed without triggering tax, provided they are supported by a proper tax invoice or receipt. Documentation must show the date, amount, merchant or service provider, and a clear description of the purchase; for some items, the employee’s name must be included.

Employees in Egypt may receive a per diem in the form of a daily meal allowance. The employer can freely set the amount, but it is fully taxable and treated as ordinary salary. Employees who receive a per diem are not entitled to claim separate reimbursement of meal expenses.

In Egypt, bonuses include both contractual and discretionary payments on top of base salary, such as incentives and commissions. These amounts are taxed as regular income and are subject to any applicable social security contributions, using the same progressive tax schedule as salary. Because bonuses are aggregated with salary for withholding, the effective withholding rate in a pay period that includes a bonus may be higher than in a normal period.