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Egypt Salary Calculator — Net Pay, Payroll Tax & Social Insurance

Calculate your net salary after income tax and social insurance deductions in Egypt. Supports gross-to-net and net-to-gross calculations.

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How to Calculate Your Net Salary in Egypt — Income Tax, NSSF & Deductions Explained

Understanding how your salary is calculated in Egypt is essential for financial planning, negotiating job offers, and managing payroll. Egypt operates a progressive income tax system alongside mandatory social insurance contributions, both of which reduce your gross salary to arrive at your net take-home pay. This guide covers the full Egypt salary calculation process for 2026, drawing on Income Tax Law 91/2005 (as amended) and Social Insurance Law 148/2019. ## Gross Salary vs Net Salary in Egypt The gross salary is the total amount agreed in your employment contract before any deductions. It typically includes your basic salary plus allowances such as housing, transport, food, and performance bonuses. Some of these allowances — particularly housing, transport, and food — may be classified as non-taxable under Egyptian law, which reduces the taxable portion of your income and therefore lowers your income tax liability. The net salary, or take-home pay, is what you actually receive after two categories of mandatory deduction: social insurance contributions and income tax. Understanding the difference between gross and net salary in Egypt is especially important because the income tax system is progressive — employees with higher gross salaries lose a much larger share of each incremental pound to tax. ## Social Insurance in Egypt (Law 148/2019) Egypt's National Social Security Fund (NSSF) is governed by Social Insurance Law 148/2019, which replaced the previous dual-system framework. All employees working in Egypt — Egyptian nationals and foreign residents alike — are covered under this system. The employee contribution is 11% of the insurable wage, covering the pension, sickness, unemployment insurance, and occupational injury branches. A separate 1% health insurance contribution is applied to the full gross salary with no upper ceiling. Additionally, employees contribute 0.05% of their gross salary to the Martyrs' Families Fund, a mandatory solidarity contribution. The insurable wage is not simply the gross salary. It is floored at a minimum (approximately EGP 2,700 per month in 2026) and capped at a maximum (approximately EGP 16,700 per month in 2026). These caps increase by roughly 15% annually in line with wage indexation. If your gross salary is below the minimum, your social insurance is still calculated on the minimum insurable wage. If your gross salary exceeds the maximum, your social insurance contributions are capped at the ceiling — a significant benefit for higher earners. Employers pay their own separate contributions of 18.75% of the insurable wage for the employee's social insurance branches, plus 3.25% of gross salary for health insurance. These employer-side costs are not deducted from the employee's salary but represent the full cost of employment that businesses must budget for. ## Egypt Income Tax Brackets and Rates 2026 Egypt's income tax system applies marginal rates across seven income bands, calculated on annual taxable income. Before applying the brackets, two deductions reduce your taxable income: your annual employee social insurance contributions, and the personal annual exemption of EGP 20,000 (applicable to all employees regardless of circumstances). The resulting net taxable income is then taxed progressively. The first EGP 40,000 is entirely exempt. Income between EGP 40,001 and EGP 55,000 is taxed at 10%. The band from EGP 55,001 to EGP 70,000 attracts a 15% rate. Income between EGP 70,001 and EGP 200,000 is taxed at 20%. The 22.5% rate applies to income from EGP 200,001 to EGP 400,000. Income from EGP 400,001 to EGP 1,200,000 is taxed at 25%. Earnings above EGP 1,200,000 per year face the highest rate of 27.5%. It is important to understand that these are marginal rates — each rate applies only to the income within that specific band, not to the entire salary. An employee earning EGP 300,000 in annual taxable income does not pay 22.5% on the whole amount; they pay 0% on the first EGP 40,000, 10% on the next EGP 15,000, 15% on the next EGP 15,000, 20% on the next EGP 130,000, and 22.5% only on the remaining EGP 100,000 above EGP 200,000. Monthly income tax withholding is simply the annual tax liability divided by 12, and is withheld by the employer each month and remitted to the Egyptian Tax Authority. ## Net Salary Formula for Egypt The Egypt net salary formula can be summarised as follows. First, calculate the insurable wage (gross salary, floored and capped at the NSSF bounds). Apply 11% to the insurable wage for the main social insurance contribution. Apply 1% to gross salary for health insurance. Apply 0.05% to gross salary for the Martyrs' Fund. Sum these three amounts to get total employee social insurance deductions. Next, subtract the annual employee SI contributions and the EGP 20,000 personal exemption from annual gross salary to arrive at annual taxable income. Apply the progressive tax brackets to this figure to calculate annual income tax. Divide by 12 for the monthly tax withholding. Finally, net monthly salary equals gross monthly salary minus total monthly SI deductions minus monthly income tax. ## Gross-to-Net and Net-to-Gross Calculations The most common payroll calculation in Egypt is gross-to-net: the employer states a gross package, and the employee wants to know their take-home pay. This calculator performs this computation in real time, showing a full breakdown of every deduction and the applicable tax brackets. The reverse — net-to-gross, also called a gross-up calculation — is used when an employer wants to guarantee a specific net salary. In this case, the calculator uses iterative refinement to find the gross salary that, after all mandatory deductions, yields exactly the desired net amount. This approach is commonly used by multinationals setting expatriate packages or Egyptian employers competing for senior talent. ## Egypt Payroll for Employers: Full Cost For HR professionals and business owners, the total cost of employing someone in Egypt includes not just the gross salary but also the employer-side social insurance (18.75% of insurable wage) and health insurance (3.25% of gross salary). This calculator includes an employer cost view to support accurate headcount budgeting and salary benchmarking. Non-taxable allowances such as housing and transport allowances reduce the employee's income tax liability without reducing the gross salary, making structured compensation packages an effective way to maximise take-home pay within Egyptian payroll rules. *This tool provides estimates based on publicly available Egyptian tax and social insurance rules for 2026. Social insurance caps are updated annually. Figures are for informational purposes only and do not constitute tax or legal advice. Consult a licensed Egyptian payroll advisor or the Egyptian Tax Authority for guidance specific to your situation.*

Frequently Asked Questions

How is net salary calculated in Egypt?+
Net salary in Egypt is calculated by starting with your gross salary and subtracting two categories of mandatory deductions. First, social insurance contributions under Law 148/2019 — the employee pays 11% for pension, sickness and unemployment, plus 1% for health insurance and 0.05% for the Martyrs' Families Fund, all applied to the insurable wage (capped at EGP 16,700 per month in 2026). Second, income tax is calculated on annual taxable income, which is gross salary minus social insurance contributions minus the EGP 20,000 personal exemption, using Egypt's progressive seven-bracket tax schedule. Net salary equals gross salary minus all these deductions.
What are the income tax rates in Egypt for 2026?+
Egypt uses a progressive income tax system under Law 91/2005 (as amended). The tax-free band covers annual income up to EGP 40,000. Above that, rates rise through six further brackets: 10% on EGP 40,001–55,000; 15% on EGP 55,001–70,000; 20% on EGP 70,001–200,000; 22.5% on EGP 200,001–400,000; 25% on EGP 400,001–1,200,000; and 27.5% on income exceeding EGP 1,200,000. Each rate applies only to the portion of income within that band, not to the entire salary.
What is social insurance in Egypt and how much is deducted?+
Egypt's social insurance system is governed by Law 148/2019. The employee contribution is 11% of the insurable wage, covering the pension branch, sickness, unemployment and occupational injury. An additional 1% health insurance contribution applies to gross salary with no ceiling. The Martyrs' Families Fund adds 0.05% of gross salary. The insurable wage is floored at approximately EGP 2,700 and capped at approximately EGP 16,700 per month in 2026, rising by around 15% annually. Employers separately contribute 18.75% of the insurable wage plus 3.25% for health insurance.
What is the difference between gross salary and net salary in Egypt?+
Gross salary is the total contractual amount before any deductions, including basic salary and all taxable and non-taxable allowances. Net salary — also called take-home pay — is what the employee actually receives after subtracting mandatory employee social insurance contributions and income tax. In Egypt, common allowances such as housing, transport and food may be treated as non-taxable, which reduces the taxable base and therefore the income tax liability. The difference between gross and net depends heavily on salary level, due to Egypt's progressive tax system.
How does the gross-to-net vs net-to-gross calculation work?+
A gross-to-net calculation starts with your stated gross salary and applies all deductions — social insurance, health insurance, Martyrs' Fund, and income tax — to arrive at the net take-home amount. A net-to-gross (gross-up) calculation works in reverse: you specify the net amount you want to receive, and the calculator iteratively finds the gross salary that, after all deductions, yields exactly that net. This is commonly used by employers when making salary offers or by employees negotiating compensation.
What is the employer total cost of hiring an employee in Egypt?+
Beyond the gross salary paid to the employee, an Egyptian employer must contribute 18.75% of the insurable wage toward the pension, sickness, unemployment and occupational injury branches of the National Social Security Fund (NSSF). Employers also pay 3.25% of gross salary for employee health insurance. These contributions are in addition to the gross salary and represent the true cost of employment to the business. For budgeting and offer negotiations, HR teams should calculate total employer cost as gross salary plus all employer-side contributions.