Payroll Outsourcing Alert-Egypt
Contact Mercans’ Payroll Outsourcing Team in Egypt for Guaranteed Compliance.
Outsource your payroll in Egypt to Mercans to ensure your compliance with the new social security calculation rules.
Egypt introduces new Social Security contribution basis from July 1, 2018.
Effective from July 1, 2018, Egypt is amending the minimum and maximum amounts used for the calculation of the fixed and variable components of the social security contributions, as follows:
|Social Security Contribution Component||Applicable Wage Types||Monthly Minimum Amount in EGP||Maximum Amount in EGP||Employee Contribution %age||Employer Contribution %age|
|Variable||Basic Salary exceeding the Fixed Component maximum amount and all other wage types||N/A||3,360||11%||24%|
In accordance with the amended minimum and maximum amounts, the social security contributions for an employee earning a total monthly salary of EGP 4,870 or more are calculated as summarized below:
|Contributor||Fixed Component Calculation Base in EGP||Variable Component Calculation Base in EGP||Monthly Fixed Component Employee Contribution in EGP||Monthly Variable Component Employee Contribution in EGP||Total Monthly Social Security Contribution in EGP
The amended rates will apply to all wages and salaries earned after July 1, 2018 through June 30, 2019.
Contact Mercans’ payroll outsourcing team in Egypt to ensure that your payroll calculations are accurate and compliant.