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Annual Income Tax Settlement (For the year 2025)
- Based on Law No. 7 of 2024, covering the period from January to December.
- Tax Brackets (on Net Income):
- These brackets apply progressively, but high-income categories lose the lower brackets (Variable Bracket System).
- Annual personal exemption is 20,000 EGP
| Annual Income / Tax % | From 0 to 600K EGP | From 600K to 700K EGP | From 700K to 800K EGP | From 800K to 900K EGP | From 900K to 1.2M EGP | More Than 1.2M EGP |
|---|---|---|---|---|---|---|
| 0% | From 1 to 40K EGP | |||||
| 10% | From 40K to 55K EGP | From 1 to 55K EGP | ||||
| 15% | From 55K to 70K EGP | From 55K to 70K EGP | From 1 to 70K EGP | |||
| 20% | From 70K to 200K EGP | From 70K to 200K EGP | From 70K to 200K EGP | From 1 to 200K EGP | ||
| 22.5% | From 200K to 400K EGP | From 200K to 400K EGP | From 200K to 400K EGP | From 200K to 400K EGP | From 1 to 400K EGP | |
| 25% | More than 400K EGP | More than 400K EGP | More than 400K EGP | More than 400K EGP | More than 400K EGP | From 1 to 1.2M** EGP |
| 27.5% | More than 1.2M EGP |
Note: As income increases and exceeds certain limits (like 600K, 700K, etc.), the taxpayer skips the lower brackets (Zero or 10%) and calculation starts immediately from the higher percentages.
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Aggregate Disciplinary Penalties Deductions
For establishments with 10 workers or more, the aggregate disciplinary penalties deductions from workers (during the second half of 2025) must be distributed as follows:
- 70%: Goes to the Cultural Institution.
- 30%: Goes to the Labor Social Institution.
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Wage Limits and Social Insurance (2026)
This table explains the financial limits for wages and the basis for calculating social insurance for the year 2026
| Category | Item | Value |
|---|---|---|
| Minimum Monthly Gross Salary 7,000 EGP | In case of exempt allowances | 5,390 EGP |
| In case of no exempt allowances | 7,000 EGP | |
| Insurable Gross salary (Subscription Wage) | Minimum | 2,700 EGP |
| Maximum | 16,700 EGP | |
| Basic Wage (Upon which Emergency Benefit is calculated) | Minimum | 440 EGP |
| Maximum | 2,720 EGP |
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Social Insurance Percentages (Form 2 for 2026)
These are subscription details in "Form 2" for 2026 based on employee category:
| Category | Employee Share | Employer Share | Minimum Insurable Gross Salary |
|---|---|---|---|
| Insured Employee (Normal) | 11% | 18.75% | |
| Over Age (Pension Age/Pensioners) | 1% | 4.75% | |
| Under Age (Minors/Trainees) | 0% | 1.5% | |
| Employer Insurance | 21% | ||
| Driver - First Degree License | 3,110 EGP | ||
| Driver - Second Degree License | 2,970 EGP | ||
| Driver - Third Degree License | 2,840 EGP | ||
| Driver - Private License | 2,840 EGP |
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Statutory Funds and Mandatory Deductions
There are several mandatory funds for establishments that meet specific conditions:
| Fund | Percentage/Value | Condition | Payment Method |
|---|---|---|---|
| Emergency Benefit Fund | 1% of Basic Wage | Applies to establishments with 30 workers or more | Day 15 each MonthlyOr Every 6 Months |
| Services Fund (Social, Health, and Cultural) | Minimum 8 EGP and maximum 16 EGP | Annually | |
| Martyrs Honouring Fund | Five in ten thousand 0.05% of the total salary | Monthly | |
| Training and Rehabilitation Fund | 0.25% of the Minimum Insurable Wage, with a minimum of 10 EGP and maximum of 30 EGP | Establishments with 30 workers or more |