Egyptian Payroll Calculation in 2026: Tax, Social Insurance & Overtime

This article explains the structure of Egyptian payroll for planning purposes. Exact tax brackets, exemptions and social-insurance ceilings are set by law and change periodically — always confirm current figures with the Egyptian Tax Authority and the NOSI before finalising a payroll run.

The gross-to-net chain

Every Egyptian payslip follows the same skeleton. Get the order right and the arithmetic is straightforward:

1. Start with gross pay — base salary plus allowances and any variable pay for the period.
2. Add earned overtime — at the correct multiplier for day vs. night/rest-day hours.
3. Add public-holiday pay — work on an official holiday is paid at a premium (commonly 2×).
4. Deduct the employee's social-insurance share — a percentage of the insured wage, up to a legal ceiling.
5. Deduct income tax — applied to taxable income across progressive brackets after the personal exemption.
6. Deduct anything else — advances, penalties, loan instalments.
7. The result is net pay — what the employee actually receives.

Income tax: progressive brackets

Egyptian income tax is progressive — income is sliced into bands and each band is taxed at its own rate, after a personal exemption. The mistake spreadsheets make is applying one flat rate to the whole salary instead of taxing each slice at its own rate. The effect is real money: getting the bracket boundaries wrong by a little over- or under-deducts every single payslip, and the error compounds across a workforce. Because the brackets and exemption are revised periodically, hard-coding last year's numbers into a sheet is how silent errors creep in.

Social insurance

Both the employee and the employer contribute to social insurance, each as a percentage of the insured wage, subject to a minimum and maximum insured amount set by the National Organization for Social Insurance. Only the employee share reduces net pay; the employer share is a separate cost the business carries. The ceiling matters: above it, additional salary is not subject to the contribution, so a flat "X% of gross" formula over-deducts for higher earners.

Overtime and public holidays

Overtime in Egypt is not a single rate. Daytime overtime, night-time overtime and work on a weekly rest day or official public holiday each carry different multipliers under the labour law. If your attendance lives in WhatsApp and your payroll lives in Excel, those multipliers get applied by memory and goodwill — which is exactly where disputes and quiet overpayment both come from. The clean approach is to let the rate follow the type of hour automatically, from the same record that proves the hour was worked.

Why the calendar month is the wrong period

Many businesses do not actually pay on the 1st-to-30th calendar month. A payroll cycle might run the 21st of one month to the 20th of the next, or align to a project. If your tool can only think in calendar months, every off-cycle run becomes a manual fudge. Real payroll software lets you choose the exact start and end dates of the period and scales base pay, tax and insurance to that window.

From attendance to payslip, automatically

The reason payroll is painful is almost never the tax formula — it is re-keying hours. Someone copies attendance from one place, overtime from another, leave from a third, and reconciles by hand. TrackYTiq closes that gap because attendance and payroll are the same system:

• Hours come straight from geofenced, anti-cheat check-ins — not a copied sheet.
• Overtime is approved in-app and already carries its correct multiplier.
• Public holidays are flagged automatically and paid at the premium rate.
• Income tax and social insurance are computed gross-to-net, and remain editable for your accountant's exact figures.
• You can run any custom period — 21st to 21st, a single project, whatever you actually pay on.
• You can filter a run by branch or staff group, and keep old runs for audit.

Built for Egypt, priced in EGP

TrackYTiq is bilingual (Arabic-first, with English) and priced in Egyptian pounds, with every feature included for every user. The hours your team works, the overtime they earn, and the payslip they receive all come from one trustworthy record — instead of three spreadsheets that disagree.