NOSI. ETA. HIA. New Labour Law. Egypt payroll, owned.
Egypt’s payroll is not a configuration exercise. It demands a live NOSI social insurance engine with an annually revised insured-wage ceiling (EGP 16,700/month from Jan 2026), progressive income tax withheld monthly via ETA Form 4, Health Insurance Authority contributions phasing in governorate by governorate, and the entirely new Labour Law No. 14 of 2025 in force since September 2025. Most providers handle withholding. Mercans handles all agencies — on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Income Tax — 0% band
- 0% up to EGP 40,000/yr
- Income Tax top rate
- 27.5% above EGP 1,200,000/yr
- Personal Exemption
- EGP 20,000/yr
- NOSI Employer (2025–26)
- 18.75% of insured wage
- NOSI Employee
- 11% of insured wage
- NOSI Max Insured Wage (2026)
- EGP 16,700/mo
- NOSI Min Insured Wage (2026)
- EGP 2,700/mo
- HIA Employer (covered govs)
- 3.25% of insurable salary
- HIA Employee (covered govs)
- 1% of insurable salary
- ETA Form 4 Deadline
- 15th of following month
- Annual Payroll Return
- 31 January (employer reconciliation)
- Minimum Wage (Mar 2025)
- EGP 7,000/month
- Minimum Wage (Jul 2026)
- EGP 8,000/month
- New Labour Law in force
- Law 14/2025 from 1 Sep 2025
Getting Egypt payroll “mostly right” is the most expensive mistake
Egypt’s payroll authorities don’t grade on a curve. ETA holds employers strictly liable for every pound of under-withheld income tax. NOSI’s ceiling rises 15% every January — payroll systems that aren’t updated on gazette date under-contribute for every employee above the old ceiling. Labour Law No. 14 of 2025 is in force from September 2025 with new overtime, leave, and gratuity rules that have no grace period. None of these failures announce themselves — they accumulate silently until an audit makes them very visible.
ETA strict employer liability for under-withholding
Under Income Tax Law No. 91/2005 and Tax Procedures Law No. 206/2020, employers are strictly liable for income tax they were required to withhold but failed to deduct. A 25% surcharge applies to the shortfall plus 2% monthly delayed-payment interest. Non-cash benefits and allowances included in the taxable base are frequently mis-classified as non-taxable.
NOSI ceiling updated 15% every January — delayed system update
Law 148/2019 mandates a 15% annual increase to minimum and maximum insurable wages each January through 2028. The ceiling rose from EGP 14,500 (2025) to EGP 16,700 (January 2026). Employers whose payroll system is not updated on the gazette effective date under-contribute for every month until corrected, triggering retroactive assessments with interest.
New Labour Law No. 14/2025 — unimplemented changes from Sep 2025
Labour Law 14/2025 (effective 1 September 2025) changes overtime pay formulas, extends maternity leave from 90 to 120 days, introduces paternity leave, raises casual leave from 6 to 7 days, and revises end-of-service gratuity tiers. Employers still running Law 12/2003 logic after September 2025 are systematically under-paying entitlements and exposed to labour court claims.
HIA regional rollout — mixed-system compliance gap
Health Insurance Authority contributions under Law 2/2018 are being introduced governorate by governorate. Multi-location employers must run two different health contribution regimes simultaneously for covered and uncovered governorates. Failing to register employees when their governorate goes live triggers retroactive contribution liability plus registration fines.
The three types of providers who struggle with Egypt
Global Aggregator Platforms
Aggregator platforms operate through a partner network in Egypt — they don’t own the entity, don’t directly manage ETA Form 4, and don’t control the compliance relationship. When the NOSI ceiling changes in January or a new Labour Law takes effect in September, the update instruction travels: platform → partner → your payroll.
- ×No direct ETA e-filing relationship — partner bureau handles Form 4
- ×NOSI ceiling update delay risk after each January decree
- ×Labour Law 14/2025 transition unsupported or partner-dependent
- ×HIA governorate rollout tracking typically excluded
Large Global Payroll Incumbents
Incumbents have Egypt coverage — in name. In practice, their MENA coverage is often delivered through regional partners or legacy systems not built for Egypt’s Law 148/2019 total-wage concept, the 15% annual ceiling escalation, or the HIA mixed-system complexity.
- ×NOSI ceiling hardcoded — not dynamically updated on gazette
- ×Law 148/2019 total-wage concept not natively modelled
- ×Labour Law 14/2025 changes require manual configuration update
- ×Long implementation timelines — Egypt not a core market
Local Egyptian Firms
Local Egyptian payroll firms know the market — but they can’t scale with you. No proprietary payroll technology, no HCM integration, no multi-country consolidation, and no data security certifications that multinationals require.
- ×No proprietary payroll technology — manual or spreadsheet-based
- ×No HCM connector — Workday, SAP, Oracle feeds require custom work
- ×No data security certifications (SOC 1/2, ISO 27701, BCR)
- ×No MENA consolidation — cannot report across Egypt + other entities
The only provider that closes every gap
Mercans is the only Egypt payroll provider that combines a proprietary payroll technology stack, full-time in-country compliance teams, direct ETA and NOSI relationships, and enterprise-grade data security — simultaneously, on one contract, with no intermediaries.
The only engine built for Egypt’s actual payroll architecture
G2N Nova™ natively models Egypt’s NOSI contribution structure under Law 148/2019 — 18.75% employer plus 11% employee on total insured wages — and auto-updates the insured wage ceiling each January from the official gazette. It withholds income tax monthly on the progressive 0–27.5% schedule via ETA Form 4, applies Labour Law No. 14/2025 overtime, leave, and gratuity rules, and manages HIA contributions across covered governorates. This isn’t configuration. It’s engineering.
Full-time Egypt team — not a partner you phone when things break
Mercans employs full-time payroll and compliance professionals in Egypt. They maintain active relationships with the Egyptian Tax Authority, NOSI, and the Health Insurance Authority — not through a contact directory, but through ongoing regulatory engagement. When ETA updates e-filing schemas, when NOSI announces the January ceiling revision, when the new Labour Law takes effect — our engine is updated before your next payroll run.
The security posture multinationals require — and Egypt’s PDPL now mandates
Egypt’s Personal Data Protection Law No. 151 of 2020 places explicit obligations on payroll processors handling employee personal data (national ID — رقم قومي, NOSI numbers, salary data). Mercans holds BCR approval, ISO 27701 certification, SOC 1 & 2, and ISO 27017/27018. Zero security breaches since inception.
Where Mercans wins on every Egypt-specific capability
Each row is an Egypt-specific capability. Each cell shows native coverage as a fill bar — full = native in-platform, half = partial / manual workaround, empty = gap.
Egypt Capability Coverage · 10 dimensions
15th deadline · 0–27.5% progressive · strict employer liability
18.75% ER + 11% EE · all components · EGP ceiling
Annual gazette update · EGP 16,700 cap (2026)
OT 135%/170% · maternity 120d · tiered gratuity · Sep 2025
Law 2/2018 · 3.25% ER + 1% EE · mixed system
Egypt-source income · DTA clearance · NOSI treaty
CBE authorisation · FX records · free zone
Law 14/2025 · IAS 19 accrual · scenario-based
31 January deadline · ETA e-Audit cross-match
Law 151/2020 · national ID · cross-border transfer
Every rate. Every cap. Every obligation.
Egypt payroll operates on exact numbers with hard deadlines. Mercans builds every figure below into G2N Nova™ and monitors them proactively — so you’re never discovering a rate change from a penalty notice.
Egypt · Rate & Compliance Dashboard
Live 2025–26Income Tax — 7 Progressive Brackets + EGP 20,000 Exemption
Egypt’s employment income tax is assessed on annual chargeable income: gross annual salary minus the EGP 20,000 personal exemption (both residents and non-residents, effective 21 February 2024), minus the employee’s NOSI contribution. The seven brackets: 0% (≤EGP 40,000) · 10% (EGP 40,001–55,000) · 15% (EGP 55,001–70,000) · 20% (EGP 70,001–200,000) · 22.5% (EGP 200,001–400,000) · 25% (EGP 400,001–1,200,000) · 27.5% (above EGP 1,200,000). The 27.5% top band was added effective 21 February 2024. Monthly withholding annualises gross, applies the annual tax, then divides by 12.
→ 7 brackets · 0% ≤EGP 40k · 27.5% >EGP 1.2m · EGP 20k exemption · ETA Form 4 monthly by 15thNOSI Law 148/2019 — Total Wage & 15%/Year Ceiling Escalation
Law 148/2019 shifted the NOSI contribution base from a basic/variable split to a single total wage concept: all salary components (basic, housing, transport, bonuses, commissions) aggregated and capped at the annual decree ceiling. The ceiling increases by 15% each January through 2028: EGP 14,500 (2025) → EGP 16,700 (January 2026). Minimum insurable wage: EGP 2,300 (2025) → EGP 2,700 (2026). Employer 18.75% + employee 11% = 29.75% total on insured wages.
→ NOSI: total wage concept · 18.75% ER + 11% EE · EGP 16,700 cap (2026) · 15%/yr escalation to 2028Labour Law No. 14/2025 — Payroll Impact Summary
Effective 1 September 2025, Law 14/2025 changed: Overtime — 135% daytime, 170% night/holiday. Maternity leave — 120 fully paid days, up to 3 times per service period (previously 90 days, 2 times). Paternity leave — 1 paid day per birth, up to 3 times. Casual leave — 7 days/year (was 6). Annual increment — minimum 3% of social insured wage mandatory. End-of-service gratuity — tiered: 0.5 month/yr for first 5 years + 1 month/yr thereafter.
→ Law 14/2025 from 1 Sep 2025 · OT 135%/170% · maternity 120d · gratuity tiered · increment 3%HIA — Regional Phased Implementation & Mixed-System Risk
Health Insurance Authority (Law 2/2018) employer contributions are 3.25% of insurable salary; employee 1%. An additional employer contribution of 0.25% of gross annual revenue (non-tax-deductible) applies. Employers in covered governorates must register via the NOSI ASSIST portal and remit monthly. Employees in uncovered governorates remain under legacy UHIO or private arrangements. HIA expansion is announced by ministerial decree with limited advance notice.
→ HIA: 3.25% ER + 1% EE covered govs · 0.25% revenue levy · UHIO legacy elsewhere · per-governorate rolloutSee your real Egypt payroll cost in real time
Switch employee type. Move the slider. NOSI social insurance contributions and ETA income tax withholding — calculated live on 2025–26 statutory rates.
Egypt Payroll Cost Calculator · Live
G2N Nova™ engineEight things only Egypt experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides — but appear in every ETA audit, NOSI inspection, and labour dispute we’ve encountered in Egypt over 20 years.
Form 4 Monthly Withholding — Employer Strict Liability
ETA Form 4 is due on the 15th of each following month. Employers are strictly liable for income tax they were required to withhold but failed to deduct — even if the employee was not underpaid. A 25% surcharge applies to the shortfall plus 2% monthly interest. Non-cash benefits, accommodation, and car allowances must be included in the taxable base at their market value.
NOSI Ceiling Rises 15% Every January — Until 2028
Law 148/2019 mandates a 15% annual increase to both the minimum (EGP 2,700 in 2026) and maximum (EGP 16,700 in 2026) insurable wages each January through 2028. Payroll systems not updated on the gazette effective date under-contribute for every month until corrected. The base is total wage (all salary components), not basic salary — a critical difference from the pre-2019 Law 79/1975 approach still used by some legacy systems.
New Labour Law No. 14/2025 — In Force September 2025
Labour Law No. 14 of 2025 replaced Law 12/2003 on 1 September 2025. Key payroll changes: overtime at 135% (daytime) and 170% (night or holiday); maternity leave extended from 90 to 120 days; paternity leave introduced (one paid day per birth, up to three times per service); casual leave raised to 7 days/year; mandatory annual salary increment at minimum 3% of social insured wage. All payroll systems must be reconfigured for the new formulas.
End-of-Service Gratuity — New Tiered Formula Under Law 14/2025
Under Law 14/2025 (from 1 September 2025), end-of-service gratuity on retirement is: half a month’s wage for each of the first five years of service, plus one month’s wage for each subsequent year. For employer-initiated early termination of a fixed-term contract: one month’s wage per year. Calculated on last wage received. Monthly accrual tracking is essential for IAS 19 provisioning and is separate from NOSI pension entitlement.
HIA Mixed-System Risk — Covered vs. Uncovered Governorates
Health Insurance Authority (HIA) contributions under Law 2/2018 are being introduced region by region. Employer contribution is 3.25% of insurable salary; employee 1%. An additional 0.25% of gross annual revenue (non-tax-deductible) applies to covered employers. Multi-location employers must run two health contribution regimes simultaneously and switch employees when their governorate goes live. No comprehensive published go-live timetable exists.
Expatriate Taxation — Egypt-Source Income Basis
Egypt taxes employment income on a source basis: income from services performed in Egypt is taxable regardless of where salary is paid or the employee’s country of residence. DTA relief requires formal ETA clearance — not simply a DTA declaration. Non-Egyptian employees are generally enrolled in NOSI on Egypt-source remuneration unless a bilateral totalization agreement applies. CBE regulations govern foreign-currency salary payments.
Personal Data Protection Law No. 151/2020 — Payroll Data Obligations
Egypt’s PDPL classifies employee national ID numbers, NOSI registration data, salary records, and health information as sensitive personal data requiring documented processing agreements, technical and organisational safeguards, and cross-border transfer controls. The Personal Data Protection Centre (PDPC) began enforcement in 2023. Non-compliant payroll processors face fines and data transfer blocks.
Mandatory Annual Salary Increment — 3% of Social Insured Wage (Law 14/2025 Art. 12)
Article 12 of Labour Law No. 14/2025 requires every private-sector employer to award each employee an annual increment of at least 3% of the employee’s social insured wage, due one year from appointment or from the due date of the previous increment. The increment floor is EGP 250/month. Because the base is the insured wage (capped at EGP 16,700/month from January 2026), the statutory minimum increment for a high-earner is approximately EGP 501/month. Employers must track increment due dates individually per employee and reflect them in payroll — failure to pay is a wage arrear subject to labour court claims.
One workforce. Two entirely different compliance tracks.
Egyptian national employees on full NOSI, progressive income tax, HIA, and Labour Law 14/2025 obligations vs. expatriate employees on Egypt-source income withholding, limited NOSI, and CBE-regulated salary payment — two entirely different compliance tracks that must run simultaneously on every pay cycle.
Parallel Compliance Engines
(Resident Employees)
NOSI: 11% EE + 18.75% ER on total insured wage. All salary components included in NOSI base up to the annual ceiling (EGP 16,700/month from January 2026). Monthly contribution schedule filed with NOSI. Work injury, pension, disability, and unemployment covered.
ETA income tax at progressive 0–27.5%. Monthly withholding via Form 4 by 15th of the following month. Chargeable income = gross minus EGP 20,000 personal exemption minus NOSI employee contribution. Annual employer reconciliation return due 31 January.
HIA contributions in covered governorates. 3.25% employer + 1% employee on insurable salary where the employee’s governorate is HIA-live. Registration via NOSI ASSIST portal prerequisite. UHIO or private health elsewhere.
Labour Law No. 14/2025 entitlements from 1 September 2025. Minimum 21 days annual leave. Overtime at 135% daytime and 170% night/holiday. End-of-service gratuity tiered at 0.5 month/yr (first 5 years) and 1 month/yr (subsequent years). Mandatory annual increment of 3% of social insured wage.
(Work Permit Holders)
Egypt-source income tax at progressive 0–27.5%. Same brackets as Egyptian nationals. Taxable on Egypt-source components regardless of where salary is paid. DTA Article 15 exemption requires formal ETA clearance certificate — a DTA declaration alone is insufficient.
NOSI: enrolled unless a totalization treaty applies. Egypt has limited bilateral totalization agreements. Without an applicable treaty, non-Egyptian employees are enrolled in NOSI on Egypt-source remuneration up to the ceiling. Treaty exemption requires official certification from the home country authority.
Foreign-currency salary: CBE compliance required. Salaries in USD, EUR, or other foreign currencies require CBE-authorised payment channels. Free zone companies, petroleum concession companies, and employers with specific CBE approval may pay in foreign currency. FX conversion records required for NOSI and ETA purposes.
Departure: employer notification and tax clearance. Employer must notify ETA within 30 days of expatriate departure. Employer may withhold final salary pending ETA tax clearance for employees with potential arrears. Annual Form 11 issued confirming earnings and withholding.
Every obligation. Every authority. Mercans owns the calendar.
Egypt compliance runs across ETA, NOSI, HIA, and the Ministry of Manpower on monthly, annual, and event-triggered cadences. Mercans’ managed payroll absorbs every filing as standard scope — you don’t track deadlines. We do.
ETA Form 4 — Payroll Tax Withholding Return
Monthly income tax withheld on employment compensation must be remitted to ETA via Form 4 by the 15th of the following month. Late remittance triggers a 25% surcharge on the shortfall plus 2% monthly delayed-payment interest. Mandatory electronic filing via the ETA e-Tax portal.
NOSI Contribution Schedule
Monthly social insurance contributions for all employees filed and remitted to NOSI. Contributions on total insured wage (all salary components) up to the annual ceiling (EGP 16,700/month from January 2026). Employer 18.75% + employee 11% = 29.75% total on insured wages.
Annual Employer Payroll Tax Reconciliation Return
Annual reconciliation return filed with ETA by 31 January of the following year. Discloses aggregate remuneration paid, total income tax withheld, employee count, and reconciliation against monthly Form 4 submissions. Annual Form 11 (employee income certificate) issued to each employee.
NOSI Insured Wage Ceiling Update
The NOSI minimum and maximum insurable wages increase by 15% each January (effective through 2028 per Law 148/2019). The ceiling increased from EGP 14,500 (2025) to EGP 16,700 (January 2026). Payroll systems must be updated before the first payroll run of each new year.
NOSI Employee Registration / De-registration
New employees must be registered with NOSI before their first payroll run. De-registration on exit required. Late or missing registration blocks the employee’s social insurance entitlements and triggers employer penalties.
Minimum Wage Update — EGP 8,000 from July 2026
The minimum wage for private sector employees rises to EGP 8,000/month from July 1, 2026 (announced by the Egyptian Cabinet in April 2026). Mandatory annual salary increment of at least 3% of social insured wage under Law 14/2025 must also be applied.
End-of-Service Gratuity & Final Settlement
Final settlement applying Law 14/2025 tiered gratuity: 0.5 month per year for first 5 years + 1 month per year thereafter (on retirement). One month per year for employer-initiated early termination of fixed-term contracts. ETA notification required within 30 days for expatriate departures.
Annual Profit-Sharing Distribution to Employees
Companies Law No. 159/1981 requires joint-stock, partnership-limited-by-shares, and limited liability companies to distribute no less than 10% of annual net profits to employees, capped at the total annual wages paid. The distribution must be resolved at the Annual General Meeting and paid within 30 days of the AGM resolution. The payroll function must calculate individual employee entitlements, process the payment run, apply income tax withholding, and record the distribution for ETA audit purposes.
Egypt is one market.
Mercans covers all of MENA on one platform.
For companies running payroll across multiple MENA states, compliance complexity multiplies — not adds. Each MENA country runs its own tax authority, social insurance body, and filing mandate. Mercans covers all major markets on a single platform with country-specific compliance engines running in parallel.
covered
1 contract
consolidation
MENA
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that ETA, NOSI, HIA, and the Ministry of Manpower expect to receive — not formatted summaries that need reformatting before you can submit them.
