JANUARY 2020 – EGYPT
SOCIAL SECURITY CONTRIBUTIONS
It is important that employers note the following:
Changes to social security contributions
Following the approval of the new Social Insurance and Pension Law (Law No. 148 of 2019) on 19 August 2019 by President Abdel Fattah al-Sisi, the long-awaited executive regulations have been published, confirming the effective date of the new social security contributions as 1 January 2020.
The contribution percentages have changed for both the employer and the employee.
Note: Contributions are no longer made up of two components. Previously, there were fixed contributions applicable to a monthly fixed basic salary, and variable contributions based on salaries above the threshold.
The executive regulations stated the contributions as follows:
- Employer share: 18.75%
- Employee share: 11%
Contributions are calculated on the total monthly salary (basic and variable), excluding certain allowances such as travel, meals, accommodation, etc.
The minimum salary cap is EGP1,000 and the maximum salary cap is EGP7,000.
Another change to be noted by employers is that the normal retirement age will gradually increase from age 60 to age 65 by 2040, beginning with an increase to age 61 as from July 2032. Decrees will be issued by the Prime Minister, stipulating the increases.
Contact our legislation team at email@example.com if you require any additional information.
© 2020 CRS Technologies (Pty)Ltd. All Rights Reserved.