Tax Guide

Payroll Taxes in Egypt —
Complete Employer Guide

By Staffona HR Specialists · Updated February 2026

Overview: Egypt Payroll Tax Obligations

Employers in Egypt have two primary payroll obligations: income tax (salary tax) withheld from employee salaries and remitted to the Egyptian Tax Authority, and social insurance contributions paid to NOSI. Both are monthly with quarterly reconciliation requirements.

Income Tax — 2026 Brackets

Egypt uses a progressive income tax system applied to annual income:

Annual Income (EGP)Tax Rate
Up to 40,0000% (exempt)
40,001 – 55,00010%
55,001 – 70,00015%
70,001 – 200,00020%
200,001 – 400,00022.5%
400,001 – 1,200,00025%
Above 1,200,00027.5%
📌 Tax is progressive — each rate applies only to income within that bracket, not the full salary. Employers must calculate monthly, withhold, and remit to the ETA by the 15th of the following month.

Quarterly Form 4 Filing

Every employer must file a quarterly salary tax reconciliation return (Form 4) with the Egyptian Tax Authority on these due dates:

  • Q1 (Jan–Mar): due April 15
  • Q2 (Apr–Jun): due July 15
  • Q3 (Jul–Sep): due October 15
  • Q4 (Oct–Dec): due January 15 of next year

An annual reconciliation is also required after year-end, reconciling all four quarters.

Social Insurance — Law 148/2019

All employees must be registered with NOSI. Monthly contributions are due by the 15th of the following month:

PartyRateApplied To
Employer18.75%Gross insurable wage
Employee11%Gross insurable wage
Total29.75%

There are annual minimum and maximum insurable wage ceilings adjusted periodically by the government. Contributions above the ceiling cap are not required.

Complete Employer Payroll Checklist

  • Register each employee with NOSI on or before day one
  • Calculate and withhold income tax monthly (progressive brackets)
  • Remit income tax to ETA by the 15th of each month
  • Remit NOSI contributions (employer + employee share) by the 15th
  • File quarterly Form 4 reconciliation with ETA
  • File annual salary reconciliation
  • Issue monthly payslips to all employees
  • Maintain payroll records for a minimum of 5 years

Non-Compliance Penalties

Late remittance of income tax or NOSI contributions results in automatic financial penalties and interest. The ETA and NOSI actively audit employers. Penalties can significantly exceed the original obligation if left unresolved.

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FAQ

Frequently Asked Questions

+What is Form 4 and when is it due?

Form 4 (نموذج 4) is Egypt's quarterly payroll tax return submitted to the Egyptian Tax Authority (ETA). It reports all employee gross salaries and income tax withheld for the quarter. It must be filed within 30 days after each quarter ends — March 31, June 30, September 30, and December 31.

+Are there payroll taxes for expat employees in Egypt?

Yes. Foreign nationals employed in Egypt are subject to Egyptian income tax on their Egypt-sourced income, regardless of nationality. Social insurance (NOSI) contributions also apply unless a bilateral social security agreement exempts them. Staffona advises on expat payroll tax obligations.

+What happens if payroll taxes are filed late?

Late NOSI remittance carries monthly penalty interest. Late ETA filings incur penalties of up to 5% of the underpaid tax per month. Staffona runs on a strict monthly payroll calendar and has never missed a statutory deadline for a client.

+Does Egypt have a minimum wage?

Yes. Egypt's minimum wage for private sector employees is EGP 7,000/month (effective March 2025)/month. The figure is reviewed periodically by the National Wages Council. Staffona monitors minimum wage changes and applies them immediately to all managed payrolls.