In Egypt, net salary is the gross salary minus three deductions: the employee's social insurance share of 11% of the insurable wage, the monthly salary tax, and the Martyrs Fund contribution of 0.05% of gross pay. In 2026 the insurable wage ranges from EGP 2,700 to EGP 16,700 a month.
Step by step
- 1
Find the insurable wage
This is the wage that social insurance is calculated on. In 2026 it is no less than EGP 2,700 and no more than EGP 16,700 a month.
- 2
Calculate the insurance share
The employee pays 11% of the insurable wage: 9% for old age, disability and death, 1% for the lump-sum benefit scheme and 1% for sickness insurance.
- 3
Work out taxable income
Multiply the monthly gross after the insurance deduction by 12, then subtract the personal exemption of EGP 20,000 a year.
- 4
Apply the tax brackets
Under Law 7 of 2024, for anyone whose net income does not exceed EGP 600,000, the first EGP 40,000 is exempt, then 10%, 15%, 20%, 22.5% and 25% apply to the following brackets. Divide the annual tax by 12.
- 5
Deduct the Martyrs Fund contribution
0.05% of gross pay, which is EGP 5 for every EGP 10,000.
The most common mistake is calculating insurance on the full gross salary. Contributions are calculated on the insurable wage only, up to its maximum.
Employee cost and net salary template for Egypt 2026
Social insurance, income tax, the Martyrs Fund, net salary and the full cost to the company for each employee, under the rules in force in October 2026.
Download the template free- how to calculate net salary from gross in egypt
- egypt salary after insurance and tax