Payroll is not a simple story
Calculating an Egyptian employee's salary means: basic pay, taxable and non-taxable allowances, deductions, social insurance, and income tax. Every piece has to be right — or you face problems with the tax authority and insurance regulators.
2024/2026 income tax brackets
- Up to 40,000 EGP/year: 0%
- 40,001 – 55,000: 10%
- 55,001 – 70,000: 15%
- 70,001 – 200,000: 20%
- 200,001 – 400,000: 22.5%
- 400,001 – 1,200,000: 25%
- 1,200,001+: 27.5%
Plus a 20,000 EGP annual personal exemption.
Social insurance
- Employee share: 11% of insurance salary
- Employer share: 18.75% of insurance salary
- Minimum: 2,000 EGP/month
- Maximum: 14,500 EGP/month
Real example
Employee earning 12,000 EGP:
- Employee insurance: 1,320
- Monthly tax: 948.5
- Net salary: 9,731.5
Accounting posting happens automatically
One click on "Post" produces the full journal in accounting: Debit Salaries / Credit Bank + Credit Tax Payable + Credit Insurance Payable.