How the calculation works
- Insurable wage = gross monthly salary, clamped between EGP 2,700 and 16,700 (2026).
- Employee social insurance = 11% of the insurable wage. The employer adds 18.75%.
- Annual taxable income = (gross − employee social insurance) × 12 − EGP 20,000 personal exemption.
- Income tax applies the Law 7/2024 brackets to the annual figure. Above EGP 600,000, the tier that removes the lower bands is used.
- Monthly tax = annual tax ÷ 12. Net = gross − social insurance − monthly tax.
Example
On a gross of EGP 25,000 a month:
- Insurable wage is capped at EGP 16,700, so employee social insurance is EGP 1,837.
- Annual taxable income: (25,000 − 1,837) × 12 − 20,000 = EGP 257,956.
- Tax: 0 on the first 40,000, then 1,500 + 2,250 + 26,000 + 22.5% × 57,956. That’s EGP 42,790 a year, or EGP 3,566 a month.
- Net pay ≈ EGP 19,597.
What’s not included
Universal Health Insurance (only in rollout governorates), sector-specific deductions, benefits in kind, bonuses taxed in the month paid, and the mandatory annual increment. See the full Egypt payroll guide.
Frequently asked questions
Is income tax in Egypt calculated monthly or annually?
Annually. Employers annualise the monthly taxable salary, apply the yearly brackets and withhold one twelfth each month.
Is employee social insurance deducted before income tax?
Yes. The 11% employee social insurance contribution is deducted from the salary before tax, along with the EGP 20,000 annual exemption.
Why does tax jump for salaries above about EGP 52,000 a month?
Above EGP 600,000 of annual taxable income, Egypt removes the lower tax bands tier by tier (bracket elimination), so the effective rate rises faster than a simple progressive scale would suggest.