May 16, 2021 2 min read

Egypt Payroll Outsourcing Alert

Egypt – Comprehensive Health Insurance Law No. 2 for 2018.

With its Comprehensive Health Insurance Law No. 2 for the year 2018, the government of Egypt reformed the public health insurance program by introducing a phased roll-out of the new program starting in 2018. The new program will be rolled out by city, as outlined below.

The enrollment in the program is mandatory for all Egyptian nationals and optional for the Egyptian nationals working or living abroad, as well as for the foreign nationals residing in Egypt.

PhaseCitiesImplementation Timeline
1Port Said - Suez - Ismailia - South Sinai - North SinaiFrom 2018 to be completed by 2020 Cities
2Aswan - Luxor - Qena -Matrouh -the Red SeaStart in 2021 (still pending) and completed by 2023
3Alexandria - Beheira -Damietta - Sohag -Kafr El SheikhStart in 2024 and completed by 2026
4Assiut - New Valley - Fayoum - Minya - Beni SuefStart in 2027 and completed by 2028
5Dakahlia - Eastern - Western – MenoufiaStart in 2029 and completed by 2030
6Cairo-Giza - Al QulaibiyaStart in 2031 and completed by 2032

 

In accordance with the program, the employee and employer contribution rates are the following:

Contribution typeEmployerEmployeeComments
Work injury1%0%
Sickness3%1%Employee contributions will cover the following family members:
- 1% for each non-working direct relative (parents and children)
- 3%for non-working partner (husband or wife).

 

The total employer contribution is 4% (3% sickness insurance + 1% work injury) of the employee’s Social Insurance contribution base, subject to a monthly minimum contribution EGP 50.

Mercans’ Egypt Payroll Outsourcing Solutions

While Mercans’ Egypt Payroll Outsourcing alerts will allow you to stay on top the latest development in Egypt’s payroll regulations, you should still get in touch with Mercans’ Egypt payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Egypt to Mercans and our Egypt payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the regulations in Egypt.

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Comprehensive Health Insurance Law No.2 for Year 2018
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