Gross, Net and Employer Cost (CTC) — Understand the Offer Before You Sign

Most confusion around Egyptian job offers comes from mixing up three numbers: the gross salary written in the contract, the net amount that lands in your bank account, and the full cost the company actually pays. This guide untangles all three with real 2026 numbers.

Gross salary

The number in your contract before any deductions, usually covering base salary plus fixed allowances. It is the base from which insurance and tax are calculated — and the figure companies quote in offers, because it is the biggest one.

Net salary (take-home)

What actually reaches you after three deductions: social insurance (11%, max EGP 1,837), progressive payroll income tax, and the Law 4.3 deduction (0.05% of gross).

2026 examples: EGP 15,000 gross gives roughly EGP 11,860 net — about 20.9% in deductions. EGP 30,000 gross gives roughly EGP 23,457 net — about 21.8%. The percentage shifts with salary because tax is progressive while the insurance cap stays flat.

Employer cost (CTC)

From the company's side, you cost more than your gross: the employer adds its own social insurance share of 18.75% of the insurable wage (capped at EGP 16,700). An employee on EGP 15,000 gross costs the company about 15,000 + 2,813 = EGP 17,813 per month.

This matters in negotiation: once your salary is above the insurance cap, the employer's insurance share stays flat, so each extra EGP 1,000 of gross costs the company almost exactly EGP 1,000.

Practical advice: negotiate on net

Because allowance structures differ between companies, the same gross can produce different nets. The safest question is always: "How much will hit my bank account each month?" — then verify it yourself with the salary calculator before accepting.

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Frequently Asked Questions

Why is my net salary lower than my gross?⌄

Three mandatory deductions: 11% social insurance (capped at EGP 1,837), progressive income tax, and the 0.05% Law 4.3 deduction.

How do I convert a desired net into a contract gross?⌄

Use the Net → Gross mode in our calculator: enter the take-home you want and it returns the gross that must be written in your contract for that amount to reach you after all deductions.

Do allowances count toward net salary calculations?⌄

Fixed cash allowances are normally part of taxable, insurable gross; some in-kind benefits are treated differently depending on their nature.