Get Live Quote 
Effective January 1, 2027, Egypt will increase the minimum monthly social insurance salary threshold from EGP 2,700 to EGP 3,200 and the maximum threshold from EGP 16,700 to EGP 19,300 — a 15% increase under Social Insurance and Pension Law No. 148 of 2019. While contribution rates remain unchanged at 18.75% (employer) and 11% (employee), the higher thresholds will increase contribution amounts for employees earning below the previous minimum or above the previous maximum. This is the final planned increase under the 2019 law.
Egypt raises social insurance contribution thresholds by 15% to EGP 3,200–19,300 effective January 1, 2027
Effective January 1, 2027, Egypt will increase the minimum monthly social insurance salary threshold from EGP 2,700 to EGP 3,200 and the maximum threshold from EGP 16,700 to EGP 19,300 — a 15% increase under Social Insurance and Pension Law No. 148 of 2019. While contribution rates remain unchanged at 18.75% for employers and 11% for employees, the higher thresholds will increase contribution amounts for employees earning below the previous minimum or above the previous maximum. This is the final planned increase under the 2019 law.
Who is affected
All employers and employees in Egypt subject to the social insurance system are affected. Employers will see increased contribution costs for employees whose salaries fall below the new EGP 3,200 minimum threshold or exceed the new EGP 19,300 maximum threshold. Employees in these salary bands will also see higher deductions from their gross pay.
What's changing
The minimum and maximum salary thresholds for calculating social insurance contributions are increasing by 15%. These thresholds set the range of income on which contributions are calculated — ensuring lower earners meet a baseline for coverage while capping the insured earnings used to determine benefits.
| Threshold | 2026 | 2027 | Change |
|---|---|---|---|
| Minimum Monthly Threshold | EGP 2,700 | EGP 3,200 | +EGP 500 (+15%) |
| Maximum Monthly Threshold | EGP 16,700 | EGP 19,300 | +EGP 2,600 (+15%) |
| Employer Contribution Rate | 18.75% | 18.75% | No change |
| Employee Contribution Rate | 11% | 11% | No change |
For employees earning below EGP 3,200, contributions will be calculated on the new minimum threshold. For employees earning above EGP 19,300, contributions will be calculated on the new maximum threshold. Employees earning between these thresholds will see contributions calculated on their actual salary.
What NEO partners and clients should do
- Update payroll systems to reflect the new EGP 3,200 minimum and EGP 19,300 maximum thresholds by January 1, 2027.
- Recalculate employer and employee contributions for affected employees using the new thresholds.
- Communicate changes to employees whose net pay will be affected by the higher contribution amounts.
- Review budget forecasts to account for increased employer contribution costs starting January 2027.
