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ComplianceMay 24, 2026 11 min read

Hiring in Egypt: the rising nearshore hub for Europe and MEA.

A 100-million-person market, deep multilingual talent (Arabic, English, French, German, Italian), favorable time zones for Europe, and a labour code mid-modernization.

PJ
Pawan Joshi
Global HR & Operations
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Egypt has quietly become one of the most interesting nearshore hubs for European, Gulf, and African companies. The talent pool is large, multilingual, and well-educated; Cairo and Alexandria sit in the same business day as Frankfurt, Paris, and Dubai; and a new Labour Law (Law No. 14 of 2025) is replacing the long-standing 2003 statute, modernizing parts of the regime that had become outdated.

Why Egypt for offshore and nearshore
105M
population — largest in MENA; ~60% under 30
CAPMAS Egypt
EGP 8,000
national minimum wage in private sector — raised from EGP 7,000 (Mar 2025) to EGP 8,000 effective July 2026 per Cabinet decision
NCW / Cabinet
21
annual leave days minimum (after 1 year, longer for senior/older workers)
Egyptian Labour Law
8 sections · tap to expand
  • Written contracts in Arabic are required; bilingual (Arabic + English) is best practice for foreign employers.
  • Probation: maximum 3 months. Cannot be renewed.
  • Fixed-term and indefinite contracts both recognized; specific rules govern renewals.
  • Working hours: 8 hours/day, 48 hours/week. Overtime at 1.35× day, 1.7× night, 2× rest days.
  • Weekly rest: at least one full day (typically Friday in private sector).
  • Social insurance contributions are mandatory and split between employer (~18–19% of insured salary) and employee (~11%), administered by the National Authority for Social Insurance (NOSI).
  • Income tax is progressive, withheld monthly by the employer.
  • Health insurance reforms (the Comprehensive Health Insurance system) are being rolled out gradually by governorate.
  • End-of-service compensation and pension entitlements flow through the social insurance system.
  • Annual leave: 21 days minimum after 1 year of service; 30 days after 10 years or for employees aged 50+.
  • Sick leave: up to 180 days/year at varying pay percentages, with medical certification.
  • Maternity leave: 4 months paid (typically 75% via employer, balance via social insurance), entitlement up to 3 times during employment.
  • Public holidays: ~13–15 days/year (mix of national and religious holidays — Ramadan, Eid).

Termination of an indefinite contract requires lawful grounds (poor performance with documented warnings, misconduct under specified categories, redundancy with proper notice, or mutual agreement). Notice period is typically 2 months (3 months for >10 years of service). Wrongful termination claims go to the Labour Court and can result in reinstatement or compensation. Mutual separation agreements with written settlements are widely used and effective.

  • Multilingual talent: large pools fluent in Arabic, English, French, German, and Italian — driven by Egypt's higher-education language tracks and German/French university partnerships.
  • Time zone: GMT+2 — full overlap with European business hours, partial overlap with US east coast.
  • Cost: senior engineers and bilingual support agents at 30–60% of European equivalents.
  • Government incentives: tax holidays and special economic zone benefits for BPO/ITES exporters in zones like the Suez Canal Economic Zone and Smart Village.
  • Growing global capability center (GCC) presence — Vodafone, Orange, Valeo, IBM, and others have major Cairo and Alexandria operations.
  • Use bilingual Arabic/English contracts compliant with Labour Law 14/2025.
  • Register with the Ministry of Manpower and NOSI before the first hire.
  • Cap probation at 3 months — non-renewable.
  • Budget for 2-month notice periods (3 months for long-tenure) and proper end-of-service entitlements.
  • For sub-25 hires, an EOR (Deel, Remote, Multiplier, Workpay) is the cleanest path; entity setup is worth it at scale.
  • Plan around Ramadan working hours (reduced by 2 hours/day for fasting Muslim employees, by law).

Official sources to verify (keep this list bookmarked)

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