How the Gross to Net Calculation Works in Egypt
- Social insurance: 11% of the insurable wage, which is the gross capped between E£2,700 and E£16,700 a month.
- Taxable income: yearly gross minus social insurance minus the personal exemption of E£20,000.
- Salary tax: the Law 7 of 2024 bands on taxable income.
- Martyrs' Fund: 0.05% of gross.
Net = Gross − social insurance − salary tax − Martyrs' Fund
Salary Tax Brackets Under Law 7 of 2024
| Yearly taxable income | Rate |
|---|---|
| E£0 to E£40,000 | 0% |
| E£40,000 to E£55,000 | 10% |
| E£55,000 to E£70,000 | 15% |
| E£70,000 to E£200,000 | 20% |
| E£200,000 to E£400,000 | 22.5% |
| E£400,000 to E£1,200,000 | 25% |
| Above E£1,200,000 | 27.5% |
Above E£600,000 of taxable income the low bands are withdrawn one by one: the 0% band is lost first, then 10%, 15%, 20% and 22.5% as income passes E£700,000, E£800,000, E£900,000 and E£1,200,000. Above E£1,200,000, all income up to that point is taxed at 25%. This causes a jump: tax on E£600,000 is E£124,750, but on E£600,001 it is E£128,750.25.
Social Insurance in 2026
Under Social Insurance Law 148 of 2019 the employee pays 11% and the employer 18.75% of the insurable wage. From January 2026 the insurable wage runs from E£2,700 to E£16,700 a month, so the employee share is at most E£1,837 a month. The limits rise each January under the law.
The employee contribution is deducted before salary tax, which lowers the tax bill as well.
Worked Example on E£10,000 a Month
- Social insurance: E£10,000 × 11% = E£1,100 a month, E£13,200 a year
- Taxable income: E£120,000 − E£13,200 − E£20,000 = E£86,800
- Salary tax: E£15,000 × 10% + E£15,000 × 15% + E£16,800 × 20% = E£7,110 a year
- Martyrs' Fund: E£60 a year
- Net: E£99,630 a year, E£8,302.50 a month
That is 17.0% of gross. At E£25,000 a month the share is 21.7%; social insurance stops at the cap, but more income sits in the 22.5% band.
Net Salary at Six Levels
| Gross a month | Social insurance | Salary tax | Net a month | Share deducted |
|---|---|---|---|---|
| E£6,000 | E£660 | E£34 | E£5,303 | 11.6% |
| E£10,000 | E£1,100 | E£592.50 | E£8,302.50 | 17.0% |
| E£15,000 | E£1,650 | E£1,482.50 | E£11,860 | 20.9% |
| E£25,000 | E£1,837 | E£3,565.84 | E£19,584.66 | 21.7% |
| E£40,000 | E£1,837 | E£7,019.92 | E£31,123.08 | 22.2% |
| E£60,000 | E£1,837 | E£12,353.25 | E£45,779.75 | 23.7% |
At E£60,000 a month taxable income passes E£600,000, the first band is lost, and net pay is E£45,779.75.
What Is Taxed and What Is Not
- Taxed: basic pay, variable pay, bonuses, allowances and most benefits in kind.
- Deductible: the employee's social insurance and, within limits, contributions to private insurance and pension schemes.
- Exempt: statutory end of service payments within the law, and some social payments.
Monthly Withholding and Bonuses
Employers estimate your yearly salary, work out the yearly tax and withhold one twelfth each month. When a bonus is paid, the yearly estimate goes up and the extra tax is taken in the bonus month. On a E£10,000 monthly salary, a bonus of E£20,000 adds E£4,000 of salary tax, because it falls in the 20% band.
Social insurance works on the monthly insurable wage, and a very low salary is still insured at the floor of E£2,700. Someone paid E£2,000 a month therefore pays E£297 of social insurance, not 11% of the actual pay. The ceiling works the other way: from E£16,700 a month upwards the contribution no longer grows.
Assumptions and Limits
- Same gross every month, one employer, a resident employee.
- Social insurance worked on the full gross within the 2026 limits; some employers insure a lower base wage, which changes the result.
- No private insurance or pension deductions, and no separate tax on bonuses.
To work back from a net offer, use the Net to Gross Calculator. Compare with Turkey on the Turkey Gross to Net Calculator.
Sources: Egyptian Tax Authority (eta.gov.eg) and Income Tax Law 91 of 2005 as amended by Law 7 of 2024, National Organization for Social Insurance (nosi.gov.eg), Law 4 of 2021 on the Martyrs' Fund. Rates for 2026.
Frequently Asked Questions
What are the salary tax brackets in Egypt?
0% to E£40,000, 10% to E£55,000, 15% to E£70,000, 20% to E£200,000, 22.5% to E£400,000, 25% to E£1,200,000 and 27.5% above, on yearly taxable income.
What is the personal exemption for employees?
E£20,000 a year, taken off before the bands are applied.
What is the 2026 maximum insurable wage?
E£16,700 a month, with a minimum of E£2,700. The employee pays 11% of it.
What is the Martyrs' Fund deduction?
A contribution of 0.05% of gross salary, five piastres per E£100, set by Law 4 of 2021.
What is the net of E£15,000 a month?
E£11,860 a month after social insurance, salary tax and the Martyrs' Fund.
Why does my tax jump above E£600,000 a year?
Law 7 of 2024 removes the 0% band for taxable income above E£600,000, and further low bands at higher levels, so a small rise can add several thousand pounds of tax.
Is the personal exemption the same for everyone?
Yes, every employee gets E£20,000 a year on salary income, on top of the E£40,000 band taxed at 0%.