Gross salary is everything you pay the employee before deductions, while the insurable wage is only the part contributions are calculated on. Its elements are set by item 8 of Article 1 of Social Insurance and Pensions Law No. 148 of 2019, and the EGP 2,700 and 16,700 monthly limits for 2026 then apply.
Step by step
- 1
What it includes
These include basic and supplementary pay, incentives and commissions, overtime pay, collective grants and bonuses, cost-of-living aid, and allowances other than those the law excludes.
- 2
What it excludes
Allowances that cover work expenses, such as transport, travel and meeting attendance, though not the representation allowance; housing, clothing and car allowances that stand for in-kind benefits; and secondment and living-abroad allowances.
- 3
Apply the limits
If the total is under EGP 2,700, contributions are calculated on 2,700, and if it is over EGP 16,700, on 16,700 only.
- 4
Know what applies to each
Contributions of 11% for the employee and 18.75% for the employer come from the insurable wage, while salary tax applies to gross after insurance and the Martyrs Fund contribution applies to gross.
- 5
Name every item in the contract
Write each pay element and its purpose in the contract and the payslip, so it is clear what is in the insurable wage and what is not.
A common mistake is relabeling part of the wage as an allowance to take it out of social insurance. The law excludes specific allowances by what they pay for, so an allowance outside these exceptions stays in the insurable wage.
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