Gross is found from net by iteration: estimate a gross, calculate its net, then adjust by the gap until the net matches your target. There is no fixed percentage to add to net, because tax is progressive on annual income and social insurance has a ceiling.
Step by step
- 1
Start with an estimate
Take any figure above the target net, since the next steps correct it however far off it is.
- 2
Calculate its net
Deduct 11% of the insurable wage, then the monthly tax calculated annually after insurance and the EGP 20,000 exemption, then 0.05% of gross for the Martyrs Fund.
- 3
Know what each pound keeps
If the insurable wage equals gross and is under EGP 16,700, each extra pound loses 11% to insurance, your bracket rate times 89% to tax and 0.05% to the fund, leaving about 71 piasters in the 20% bracket. Above the maximum, the insurance part drops out.
- 4
Adjust and repeat
Divide the gap between the target and the calculated net by what each pound keeps, add the result to gross, and recalculate, since the increase may move you into a higher bracket.
- 5
Work out the cost to the company
Add the employer share of 18.75% of the insurable wage to the final gross, which gives the real monthly cost of the offer.
A common mistake is adding one fixed percentage to net for every employee. Tax is progressive and insurance is capped, so a percentage that works for one salary does not work for a higher one.
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