How to calculate social insurance and income tax in Egypt 2026
The formulas behind an Egyptian payslip in 2026, with a worked example: insurable wage, social insurance, health insurance, martyrs' fund and income tax.
By Mostafa Wanas, founder, Wanas Apps
Published: | Updated: | 8 min read
Figures verified on 22 Oct 2026
An Egyptian payslip comes from a short chain of calculations: the insurable wage, social insurance, health insurance, income tax and the martyrs' fund. Each step is simple on its own. The mistakes happen in the order of the steps and in the rounding. This guide walks through the chain with a worked example, using the 2026 figures.
The 2026 figures at a glance
| Item | 2026 value |
|---|---|
| Insurable wage limits (Law 148/2019) | EGP 2,700 minimum, EGP 16,700 maximum, per month |
| Social insurance, employee | 11% of the insurable wage |
| Social insurance, employer | 18.75% of the insurable wage |
| Universal health insurance, employee | 1% of the fixed pay, where the scheme applies to the work governorate |
| Martyrs' fund | 0.05% of gross pay |
| Personal exemption (Law 7/2024) | EGP 20,000 a year |
| Tax brackets, on the annual base after the exemption | 0% to 40,000; 10% to 55,000; 15% to 70,000; 20% to 200,000; 22.5% to 400,000; 25% to 1,200,000; 27.5% above |
| Minimum wage, private sector | EGP 7,000 a month |
Step 1: the insurable wage
Social insurance is not charged on the whole salary. It is charged on the insurable wage, which is built from the parts of pay that are subject to insurance (usually the basic and variable pay your contract defines, not every allowance), and then clamped. If the insurable wage is below EGP 2,700 it is lifted to EGP 2,700. If it is above EGP 16,700 it is cut to EGP 16,700. A person earning EGP 30,000 and a person earning EGP 16,700 therefore pay the same insurance.
Step 2: social insurance
The employee contribution is 11% of the insurable wage, and the employer pays 18.75% on top. The employee share is deducted from pay. The employer share is a cost to the company and does not appear on the employee's payslip as a deduction. Together the contributions fund the insurance branches (pension, sickness, work injury and unemployment) that you report to NOSI.
Step 3: universal health insurance
Where the Universal Health Insurance scheme applies to the governorate the employee works in, the employee pays 1% of the fixed pay. The scheme is being rolled out governorate by governorate, so check which governorates apply to your sites. Like employee social insurance, the UHI contribution is deducted before income tax is calculated.
Step 4: the monthly taxable pay
Take gross pay for the month and subtract the employee social insurance and the employee UHI. Certain exempt insurance premiums can also reduce it, up to an annual cap. The result is the taxable pay for the month.
Step 5: annualise, apply the exemption, round down
- Multiply the monthly taxable pay by 12 to get the annual figure. (The ETA form annualises on a 360-day year, which gives the same result for a full month.)
- Subtract the EGP 20,000 personal exemption.
- Round the result down to the nearest EGP 10. This rounding comes from the ETA rules and it matters: rounding to the nearest value can move you into a different amount of tax.
Step 6: apply the brackets
Tax each slice of the annual base at its own rate, using the brackets in the table above, and add the slices up. Incomes above EGP 600,000 a year also see the lower brackets phased out progressively under Law 7/2024. Divide the annual tax by 12 for the monthly deduction.
Step 7: the martyrs' fund
The martyrs' fund is 0.05% of gross pay, deducted separately from income tax. It is small, but a payslip without it is wrong.
Worked example: gross salary EGP 20,000 a month
Assume the whole salary is insurable, the employee works in a governorate where UHI does not yet apply, and there are no other exemptions.
| Step | Calculation | Result (EGP) |
|---|---|---|
| Insurable wage | 20,000 clamped to the 16,700 maximum | 16,700 |
| Employee social insurance | 11% x 16,700 | 1,837 |
| Taxable pay for the month | 20,000 - 1,837 | 18,163 |
| Annual base | 18,163 x 12 | 217,956 |
| After the exemption | 217,956 - 20,000 | 197,956 |
| Rounded down to EGP 10 | 197,950 | |
| Tax on 40,000 to 55,000 | 15,000 x 10% | 1,500 |
| Tax on 55,000 to 70,000 | 15,000 x 15% | 2,250 |
| Tax on 70,000 to 197,950 | 127,950 x 20% | 25,590 |
| Annual income tax | 1,500 + 2,250 + 25,590 | 29,340 |
| Monthly income tax | 29,340 / 12 | 2,445 |
| Martyrs' fund | 0.05% x 20,000 | 10 |
| Net pay | 20,000 - 1,837 - 2,445 - 10 | 15,708 |
The employer pays an extra 18.75% x 16,700 = EGP 3,131.25 in social insurance on top of the gross salary. If UHI applied, the employee would also pay 1% of the fixed pay, and that amount would reduce the taxable pay in step 4.
A second example: the minimum wage, EGP 7,000
| Step | Calculation | Result (EGP) |
|---|---|---|
| Employee social insurance | 11% x 7,000 | 770 |
| Taxable pay for the month | 7,000 - 770 | 6,230 |
| Annual base after the exemption | 6,230 x 12 - 20,000, rounded down | 54,760 |
| Annual income tax | (54,760 - 40,000) x 10% | 1,476 |
| Monthly income tax | 1,476 / 12 | 123 |
| Martyrs' fund | 0.05% x 7,000 | 3.50 |
| Net pay | 7,000 - 770 - 123 - 3.50 | 6,103.50 |
Where the numbers usually go wrong
- Using gross instead of the insurable wage for social insurance, or forgetting the minimum and maximum limits.
- Forgetting that employee insurance reduces taxable pay. Tax is calculated after the employee share of insurance, not on gross.
- Rounding. Round the annual base down to EGP 10 before the brackets, not the tax at the end.
- Employer-paid employee share. If the company pays the employee's insurance share instead of the employee, that amount is generally treated as a taxable benefit. Confirm the treatment with your accountant.
- Mid-month joiners and leavers, unpaid leave and additional payrolls (bonuses paid outside the main run), which are prorated or taxed together with the month. Each needs a clear rule.
- Out-of-date limits. The insurable wage limits change every January, so a spreadsheet built last year is wrong this year.
Check it yourself
You can run any salary through the free salary calculator and compare it with the steps above. To run the same logic every month, with attendance, approvals and payslips, see Wanas Payroll and its pricing, or read our checklist for choosing payroll software in Egypt. If your HR runs on Zoho People, payroll for Zoho People companies in Egypt explains how the pieces connect.
Questions people ask
What are the social insurance rates in Egypt for 2026?
In 2026 the employee pays 11% and the employer 18.75% of the insurable wage under Social Insurance Law 148/2019, a total contribution of 29.75%. The insurable wage is the part of pay that is subject to insurance, held between a minimum of EGP 2,700 and a maximum of EGP 16,700 a month. Pay above EGP 16,700 attracts no further insurance, so the most an employee pays is 11% x 16,700 = EGP 1,837 a month and the most an employer pays is 18.75% x 16,700 = EGP 3,131.25. Where Universal Health Insurance applies to the governorate, the employee also pays 1% and the employer 4%. The martyrs' fund takes 0.05% of gross pay. Example: on a EGP 10,000 salary the employee pays EGP 1,100 and the employer EGP 1,875. The limits are revised every January, so check the National Organization for Social Insurance (NOSI) for the current figures. The free salary calculator applies these rules to any salary.
How do I calculate salary tax in Egypt in 2026?
Salary tax in Egypt follows Law 7/2024 and takes six steps. 1) Subtract the employee's social insurance (11% of the insurable wage, held between EGP 2,700 and 16,700) and, where it applies, 1% health insurance from the monthly gross. 2) Multiply the result by 12. 3) Subtract the EGP 20,000 personal exemption. 4) Round down to the nearest EGP 10. 5) Tax each slice of the annual figure: 0% up to 40,000, 10% to 55,000, 15% to 70,000, 20% to 200,000, 22.5% to 400,000, 25% to 1,200,000 and 27.5% above. 6) Divide the annual tax by 12 and deduct the martyrs' fund of 0.05% of gross. Example, gross EGP 15,000: insurance 1,650; taxable 13,350; annual 160,200; after the exemption 140,200; tax 1,500 + 2,250 + 14,040 = 17,790 a year, or EGP 1,482.50 a month; martyrs' fund 7.50; net pay EGP 11,860.
Sources
Primary sources behind the figures and claims on this page. Statutory values change, so check them there before you rely on them.
- National Organization for Social Insurance (NOSI): social insurance rules, insurable wage limits and employer forms (Arabic site).
- Egyptian Tax Authority (ETA), payroll tax guide: the unified payroll tax calculation system, its forms and due dates (Arabic site).
- Universal Health Insurance Authority: the national health insurance scheme and where it applies.
- Ministry of Finance: official tax policy and legislation publications.
- Laws, cited by number: Social Insurance and Pensions Law No. 148 of 2019; income tax Law No. 7 of 2024; Labour Law No. 14 of 2025; Personal Data Protection Law No. 151 of 2020. Read the full texts in the Official Gazette; we do not link a text we could not verify.
Figures verified on 22 Oct 2026.
