Egypt Payroll — Monthly WPS, Form 4 Withholding & Social Insurance Filing

Verify that the employer holds a valid Tax Registration Number (TRN) with the Egyptian Tax Authority (ETA) and is enrolled in the National Organisation for Social Insurance (NOSI). Confirm each employee has a National ID number and a NOSI insurance card number, and that the company is enrolled in the Wages Protection System (WPS) if applicable. Identify any new hires or terminations since the prior month.

Collect each employee monthly payroll components and classify them as either pensionable earnings (subject to social insurance) or taxable income (subject to income tax withholding). Egyptian law distinguishes the insurance wage — capped at EGP 10,900/month for SI purposes under Law 148/2019 — from total gross pay. Identify cash allowances, in-kind benefits, overtime, bonuses, commissions, and any non-taxable elements such as meal coupons within limits or transport allowances within ETA published thresholds.

Compute monthly salary income tax for each employee under Income Tax Law No. 91 of 2005 as amended. Annualise the monthly gross, apply the personal exemption (EGP 15,000/year i.e. EGP 1,250/month per employee), then apply the progressive brackets: 0% up to EGP 40,000; 10% EGP 40,001-55,000; 15% EGP 55,001-70,000; 20% EGP 70,001-200,000; 22.5% EGP 200,001-400,000; 25% above EGP 400,000 (per 2023 Finance Act amendments). De-annualise to arrive at the monthly withholding. Aggregate all employees into Form 4 for ETA submission.

Calculate employer and employee social insurance contributions under Social Insurance Law No. 148 of 2019. The combined rate is 26.25% employer plus 11% employee on the insurance wage, capped at EGP 10,900/month per employee (variable ceiling updated annually by NOSI). Apply the variable supplementary insurance ceiling of EGP 3,900/month for the variable wage component. Prepare the monthly NOSI Form 2 contribution schedule and generate the NOSI bank payment reference.

Compute each employee net pay (gross minus income tax withholding minus employee SI share minus any authorised deductions such as advances or garnishments). Generate payslips and, where WPS-enrolled, produce the Wages Protection System SIF (Standard Input File) in the Central Bank of Egypt format for upload to the payroll bank to effect salary transfers within the WPS deadline.

Submit Form 4 to the ETA by the 15th of the following month (e.g., January payroll due by 15 February) and remit withheld tax to the ETA-designated bank account. Pay NOSI contributions by the last day of the following month. File the WPS bank transfer confirmation with HR records. Retain all payroll records, Form 4 submissions, NOSI receipts, and WPS bank confirmations for five years as required by Egyptian Tax Procedures Law No. 206 of 2020.