New Increase in the Social Insurance Salary in Egypt
The new Social Insurance Law No. 148/2019 in Egypt (which came into force in January 2020) has introduced – for the first time – the concept of the Unified Social Insurance Salary (“USIS”) and cancelled the traditional distinction between basic and variable social insurance salaries.
The USIS is the salary on which social insurance contributions are calculated. According to the Law, the minimum USIS is set at EGP 1,000 and the maximum is set at EGP 7,000 per month. The Law states that these minimum and maximum shall subject to an annual increase of (15%) throughout seven years following the enforcement date of the Law.
In execution of the above, the Social Insurance Authority in Egypt issued a circular last January announcing the increased minimum and maximum USIS; to be EGP 1,200/monthly and EGP 8,100/monthly starting from 1st January 2021.
To learn more about the new Social Insurance Law in Egypt, please read our Summary Note on Egypt’s New Social Insurance Law
If you have any inquiries, please contact Dr. Eman Riad.