Egypt is a country located at the junction of Africa and Asia, with a rich cultural and historical heritage. In recent years, with the acceleration of globalization, more and more businesses have begun to consider establishing subsidiaries or directly recruiting employees locally in Egypt. However, as a developing country, Egypt's labour costs are relatively low, but there are also some issues that cannot be ignored.
1. Egypt's Labour Environment
Egypt's labour environment is improving positively, attracting domestic and foreign investment and providing better job opportunities. Labour laws protect the rights of employers and employees, and the government takes measures to reduce taxes, simplify approval procedures and encourage businesses to set up operations in Egypt. Egypt attaches importance to education and skills training to improve the quality and competitiveness of the labour force. Although relatively low labour costs and the development of various economic sectors increase the diversity of job opportunities, Egypt still faces challenges. However, the government's efforts show the willingness to improve the labour environment.
2. Egypt's Labour Costs
a) According to data released by the International Labour Organization (ILO), Egypt's minimum wage standard is EGP1,200/month, equivalent to about RMB 630. However, due to the relatively low level of economic development, most enterprises tend to offer low salaries when recruiting employees. According to locals, some companies even offer salaries below the minimum wage standard. Therefore, employers need to understand the local salary level when recruiting employees and provide reasonable salary treatment to ensure employees' quality of life and work enthusiasm.
b) The Egyptian government stipulates tha tall companies must purchase social insurance for employees, including medical insurance, retirement insurance, unemployment insurance and work injury insurance. According to local policies, enterprises need to pay 6% social insurance premiums for employees. In addition, enterprises also need to purchase medical insurance and retirement insurance for employees. Therefore, employers need to calculate social insurance costs to determine employees' actual labour costs.
c) Egypt has a relatively sound labour regulation system. According to local labour regulations, employers need to provide employees with legal employment contracts that clearly specify employees' salaries, working hours, rest times, holidays, etc. In addition, employers also need to provide safety, health and good working environment for employees. If enterprises violate local labour regulations, they will face fines, business suspensions and other serious consequences.
d) With the continuous updating of technology, employees need to continue learning and improving their skills and knowledge levels. Therefore, training and education have become important means for enterprises to improve the quality and competitiveness of employees. In Egypt, enterprises can improve employees' skills and knowledge through providing training and education to employees. In addition, enterprises can also attract high-quality talents through cooperation with local universities and research institutions.
e) In addition to the above costs, employers also need to consider taxation and other expenses. In Egypt, companies need to pay various taxes such as personal income tax, value-added tax and business tax for employees. In addition, companies also need to pay utilities and rent. Therefore, when calculating labour costs, employers need to include these costs.
In summary, when considering recruiting employees in Egypt, employers need to understand local labour costs and provide reasonable salaries and benefits. At the same time, employers need to strictly comply with local labour regulations and provide good training and education opportunities for employees. Only in this way can they attract talented people and improve the competitiveness of enterprises.