Gross to net salary in Egypt 2026: five worked examples from EGP 6,000 to EGP 120,000

In Egypt, net pay is the gross salary minus three statutory deductions: employee social insurance (11% of the insurable wage), salary tax (on the annual taxable income after the EGP 20,000 personal exemption) and the martyrs' fund contribution (0.05% of gross). The employer then adds 18.75% insurance plus 1% emergency fund on top of the gross to arrive at the total cost of employment. This guide walks through five real salaries, from EGP 6,000 to EGP 120,000 a month, using the 2026 figures.

The six steps, in order

Every example below follows the same sequence. Keep it in this order, because the tax base depends on the insurance deduction.

1. Insurable wage. The wage on which social insurance is calculated, bounded by the 2026 NOSI limits of EGP 2,700 and EGP 16,700 a month. In these examples the whole gross is treated as insurable.
2. Employee insurance. 11% of the insurable wage.
3. Annual taxable income. (Gross × 12) − (employee insurance × 12) − EGP 20,000 personal exemption, rounded down to the nearest EGP 10.
4. Salary tax. Apply the progressive bands to the annual figure, then divide by 12 for the monthly amount.
5. Martyrs' fund. 0.05% of gross pay, deducted from the employee.
6. Net and employer cost. Net = gross − insurance − tax − martyrs' fund. Employer cost = gross + 18.75% employer insurance + 1% emergency fund, both on the insurable wage.

1. Gross salary
2. − Employee social insurance (11% of insurable wage)
3. − Personal exemption (20,000 ÷ 12)
4. = Taxable income (rounded down to EGP 10 a year)
5. × Brackets → salary tax
6. − Tax − Martyrs' Fund 0.05% − other deductions
7. = Net pay

All figures were produced with the SalaryEG engine, so they match what the calculator shows. Amounts are rounded to the nearest piastre.

Example 1: gross EGP 6,000

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A salary close to the minimum wage pays almost no tax: the exemption and the 0% band absorb most of it. Insurance is by far the larger deduction here.

Example 2: gross EGP 12,000

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At this level the salary reaches the 20% band. Total deductions are about 19% of gross, and the employer pays roughly 20% on top.

Example 3: gross EGP 25,000

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Once the gross passes EGP 16,700, insurance stops growing. From here on every extra pound of salary is reduced only by tax and the 0.05% fund.

Example 4: gross EGP 60,000

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This is the first example where the tiering bites. Because the annual taxable income is above EGP 600,000, the whole first EGP 55,000 is taxed at 10% instead of the first EGP 40,000 being tax-free. That alone adds EGP 4,000 a year compared with the plain brackets.

Example 5: gross EGP 120,000

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At the top tier there are no bands at all: one flat rate on the full taxable income. The effective tax rate is about 26.7% of gross.

Comparison table (monthly, EGP, 2026)

Gross	Insurable wage	Employee insurance	Monthly tax	Martyrs' fund	Net pay	Net as % of gross	Employer cost
6,000	6,000	660.00	34.00	3.00	5,303.00	88.4%	7,185.00
12,000	12,000	1,320.00	948.50	6.00	9,725.50	81.0%	14,370.00
25,000	16,700	1,837.00	3,565.73	12.50	19,584.77	78.3%	28,298.25
60,000	16,700	1,837.00	12,353.13	30.00	45,779.87	76.3%	63,298.25
120,000	16,700	1,837.00	32,036.35	60.00	86,066.65	71.7%	123,298.25

Two patterns stand out. Insurance is a fixed EGP 1,837 for anyone earning above EGP 16,700, so its share of gross shrinks as salaries rise. Tax does the opposite: it grows from under 1% of gross at EGP 6,000 to almost 27% at EGP 120,000.

What changes with the 30% allowances option

Many Egyptian companies structure pay as a basic wage plus allowances equal to 30% of basic, and their HR systems insure only the basic wage. The insurable wage then becomes gross ÷ 1.30. The law's definition of the insurable wage includes basic and variable components, so this is practice rather than a legal rule, and NOSI applies its own definition on inspection.

The effect is limited to salaries whose basic wage is below the EGP 16,700 cap:

Gross	Insurable wage (basic)	Employee insurance	Monthly tax	Net pay	Employer cost
6,000	4,615.38	507.69	49.17	5,440.14	6,911.53
12,000	9,230.77	1,015.38	1,009.33	9,969.29	13,823.08
25,000 and above	16,700 (cap)	1,837.00	unchanged	unchanged	unchanged

Note the trade-off: lower insurance means a higher taxable income, so tax goes up slightly (EGP 34 → 49.17 at EGP 6,000). Net pay still rises, and employer cost falls by more. At EGP 25,000 the basic wage (19,230.77) is already above the cap, so nothing changes.

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Common mistakes

• Taxing before deducting insurance. The employee's 11% is deducted before tax is calculated. Skipping this overstates tax.
• Forgetting to round down. The annual tax base is rounded down to the nearest EGP 10 (257,956 → 257,950). Small, but it is what the authority expects.
• Applying the plain brackets above EGP 600,000. The lower bands fall away in tiers. A spreadsheet that always starts at 0% will under-withhold for senior staff.
• Insuring above the cap. The 2026 maximum insurable wage is EGP 16,700. Contributions above it are not due.
• Treating the martyrs' fund as an employer cost. It is 0.05% of gross deducted from the employee.
• Using 2025 limits in 2026. The insurance range moved from EGP 2,300–14,500 to EGP 2,700–16,700 on 1 January 2026.

FAQ

Why is the net percentage lower for higher salaries?

Because salary tax is progressive and tiered. At EGP 6,000 most income sits in the tax-free band; at EGP 120,000 the entire taxable amount is charged at 27.5%.

Does the employer's 18.75% ever go above EGP 3,131.25 a month?

Not in 2026. The cap of EGP 16,700 × 18.75% = EGP 3,131.25, plus EGP 167 emergency fund. The cap rises 15% on 1 January 2027.

Is the 30% allowances split legal?

It is common practice, not a legal rule. The law defines the insurable wage as basic plus variable components, so a payroll that insures only the basic wage should be able to justify that split to NOSI.

What about bonuses or overtime in a given month?

Taxable additions raise that month's taxable income and therefore tax; insurable additions raise the insurable wage up to the cap. The calculator lets you add them as separate lines.

Sources

• Income Tax Law 91/2005, as amended by Law 30/2023 and Law 7/2024 (salary tax brackets, EGP 20,000 personal exemption, tiered removal of lower bands).
• Social Insurance and Pensions Law 148/2019 and its executive regulations (11% / 18.75% rates; insurable wage limits rising 15% each January).
• Law 156/2002 (Emergency Fund, 1% employer) and Law 16/2018 (Martyrs', Victims', Missing and Injured Fund, 0.05% employee).
• Egyptian Tax Authority (eta.gov.eg) and National Organisation for Social Insurance (nosi.gov.eg).
• PwC Tax Summaries, Egypt — Individual: taxsummaries.pwc.com/egypt/individual/taxes-on-personal-income.