Step 1: employee social insurance
The employee pays 11% of the insurable wage, which is bounded between EGP 2,700 and EGP 16,700 a month in 2026. Above the ceiling, social insurance stays at EGP 1,837 a month. The employer pays a further 18.75%.
Step 2: annual taxable income
Taxable income = (monthly gross − employee social insurance) × 12 − EGP 20,000 personal exemption.
Step 3: apply the brackets
| Annual taxable income (EGP) | Rate |
|---|---|
| 0 – 40,000 | 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% |
| Above 1,200,000 | 27.5% |
High-income rule: above EGP 600,000 of taxable income, the lowest band is removed, and more bands drop at 700,000, 800,000, 900,000 and 1,200,000. Above 1.2 million, the first 1.2 million is taxed at a flat 25%.
Net pay examples (2026)
| Monthly gross | Social insurance | Income tax | Net monthly | Effective tax |
|---|---|---|---|---|
| 8,000 | 880.00 | 255.50 | 6,864.50 | 3.2% |
| 15,000 | 1,650.00 | 1,482.50 | 11,867.50 | 9.9% |
| 25,000 | 1,837.00 | 3,565.84 | 19,597.16 | 14.3% |
| 40,000 | 1,837.00 | 7,019.92 | 31,143.08 | 17.5% |
| 60,000 | 1,837.00 | 12,353.25 | 45,809.75 | 20.6% |
| 120,000 | 1,837.00 | 29,536.49 | 88,626.51 | 24.6% |
These examples assume the full gross is the insurable wage and there are no other allowances or deductions. Calculate your own with the Egypt salary tax calculator.
For employers
- Withhold the tax monthly and pay it to the ETA by the 15th of the following month.
- Bonuses and allowances are taxable, and are calculated on the annualised total.
- Keep payroll in a system such as Odoo Payroll, so tax and social insurance are calculated the same way every month.
Need professional assistance?
KasemCPA can review your numbers, build the model properly or set it up in Odoo.