Social Insurance Obligations for Employers in Egypt

Egypt's Social Insurance and Pensions Law No. 148 of 2019 (effective July 2020) overhauled the country's social security framework, merging three legacy laws into a unified system. For employers, compliance is not optional: failure to register workers, under-report wages, or remit contributions on time exposes businesses to significant financial penalties and potential criminal liability for management.

Contribution Rates Under Law 148/2019

The law introduced a phased schedule of contribution rates that will reach their final levels by 2027. As of the 2025/2026 fiscal year, the applicable rates are:

• Employer contribution: 18.75% of the insurable wage (rising to 26% by 2027).
• Employee contribution: 11% of the insurable wage (rising to 14% by 2027).
• Total current combined rate: 29.75% of the insurable wage.

The insurable wage is subject to minimum and maximum ceilings set annually by the National Organisation for Social Insurance (NOSI). For 2025, the minimum is EGP 1,400/month and the maximum is EGP 12,000/month for base wage calculations, with variable component ceilings adjusted separately.

Registration and Reporting Requirements

Employers must register their business with NOSI within one month of commencing operations. Each new employee must be enrolled within the first month of employment. Monthly contribution schedules (Form 2) must be filed and payments settled no later than the 15th of the following month. Late payment attracts a monthly surcharge of 1% of unpaid contributions, capped at the principal amount.

Treatment of Non-Egyptian Employees

Foreign nationals working under Egyptian employment contracts are subject to the same contribution obligations as Egyptian workers. However, foreign employees who are covered by a bilateral social security agreement between Egypt and their home country may be exempt from Egyptian contributions during a defined secondment period — provided the employer obtains a certificate of continued coverage from the home-country authority.

Penalties and Enforcement

NOSI has significantly strengthened enforcement over the past three years, cross-referencing its database with Egyptian Tax Authority payroll records and banking transaction data. Employers found to have under-declared wages face back contributions plus a 2% monthly surcharge from the date the underpayment began. Deliberate evasion can result in fines of between EGP 50,000 and EGP 200,000 per violation, and the responsible manager may face personal liability.

ETAF Office provides comprehensive payroll compliance services, including monthly NOSI filing, wage-ceiling monitoring, and audit representation before the Social Insurance courts. Reach out to schedule a compliance health-check for your workforce.