How We Calculate Egyptian Net Salary (2026 Methodology)

1. Social insurance (employee share)

Employee social insurance is 11% of the insurable wage. The insurable wage is capped at 16,700 EGP per month in this model, so the maximum monthly employee contribution is 1,837 EGP. For an uninsured employee the contribution is zero, and the taxable base rises accordingly. You can also enter a custom insurable wage when the insured wage differs from the basic salary.

2. Variable pay

Cost of living, commission or KPI pay, overtime and transportation are treated as fully taxable and excluded from the insurable wage. Social insurance is therefore calculated on the base salary only. Check your own contract and insurance registration, because some employers insure a larger part of the package.

3. Personal exemption

A personal exemption of 20,000 EGP per year (1,666.67 EGP per month) is deducted before tax. Taxable monthly income is the base salary minus employee social insurance minus 1,666.67, plus any variable pay. It is annualised by multiplying by 12.

4. Annual income tax brackets

Annual tax is calculated progressively on the annualised taxable income:

• Up to 40,000 EGP: 0%
• 40,000 to 55,000 EGP: 10%
• 55,000 to 70,000 EGP: 15%
• 70,000 to 200,000 EGP: 20%
• 200,000 to 400,000 EGP: 22.5%
• 400,000 to 1,200,000 EGP: 25%
• Above 1,200,000 EGP: 27.5%

5. High-income adjustment

For annual taxable income above 600,000 EGP, the engine follows the source payroll workbook, which withdraws the benefit of the lower brackets in steps as income rises. The effective tax in that range therefore does not equal a simple sum of the marginal rates above. Salaries in that range are uncommon, and we recommend confirming them with your payroll team.

6. Law 4.3 deduction

A deduction of 0.05% of total gross monthly pay is applied as the Law 4.3 contribution shown in the breakdown.

7. Net salary and employer cost

Net monthly salary = total gross minus employee social insurance minus monthly income tax minus the Law 4.3 deduction. Monthly income tax is annual tax divided by 12. The net-to-gross mode finds the gross figure that produces your net amount using the same formulas in reverse. Cost to company adds the employer's share of social insurance to gross pay.

8. How results are checked

The engine replicates a payroll gross-up workbook used in real payroll. Changes are tested against that workbook, including every cached row of its data table and a matrix of bracket-boundary cases, before they are published.

Assumptions and limits

Calculations are monthly, assume a 30-day month and a full year of employment at the same salary, and do not include stamp duty, medical or private insurance, loans, advances, unpaid leave, or company-specific benefits. Laws, brackets and insurance ceilings change, so confirm against official sources such as the Egyptian Tax Authority and the National Organization for Social Insurance.