Egypt's social insurance Forms 1, 2 and 6: when each is due

Executive summary

• Form 1 notifies an employee's enrolment: it goes in with the establishment's application, then within two weeks of any employee joining (articles 17 and 19 of the executive regulations of the Social Insurance and Pensions Law).
• Form 2 is the establishment's enrolment application, due within two weeks of the start of activity, then each January with the changes in employees' data and wages, and on any date when a law or decree amending wages is issued (articles 17 and 18, and the instructions on the form).
• Form 6 notifies the end of an employee's enrolment within a week of the end of service (article 20 of the regulations).
• A late Form 6 on an employee's departure attracts an additional amount of 20% of the last month's contribution for each month of delay (article 20).
• Contributions are computed on the data in these forms (article 64 of the regulations), and failing to submit data on employees' names, wages and contributions is punishable by a fine of EGP 20,000 to 50,000 (articles 120 and 167 of Law No. 148 of 2019).

Form 1: every employee who joins

The establishment's application, when its file is opened, must be accompanied by "the notification of an employee's enrolment with the Organization on Form No. (1)" for each employee, with his birth document (article 17 of the regulations issued by Prime Ministerial Decree No. 2437 of 2021). After that, for each new employee the employer files Form 1, the "application to enrol an insured person" (article 12), with the employee's data, wage and contributions, the birth document and a copy of the employment contract if there is one, within two weeks of any of the following (article 19):

• any employee joining;
• trainees, industrial apprentices, students on summer employment schemes or public service conscripts joining;
• an employee under eighteen joining.

An employee with a previous contribution record, or who is entitled to another pension, files a statement of it himself on Form 4 (article 15).

Form 2: the business and wage changes

Form 2 is the establishment's enrolment application, filed in three copies within two weeks of the start of activity (article 17), and it then recurs: "the private-sector employer must provide the Organization with a statement of the changes in the data and wages of its employees each January on Form No. (2)" (article 18). The instructions on the form, as replaced by Prime Ministerial Decree No. 487 of 2022, state that private-sector businesses file it "each January", "and also on any date during the year on which a law or decree amending wages is issued", and that it may be filed electronically under the rules of the National Organization for Social Insurance (NOSI).

The January date follows from the way contributions are computed: a private-sector employee's contributions for the whole year are based on the January wage (article 70 of the regulations), and the insurable wage limits also change each January (article 53). The January Form 2 is what carries the new year's wages, on the new limits, to NOSI. Article 18 also provides for wage and contribution data to be filed monthly on an electronic file, under a decision of the President of NOSI made under article 13; we have not found that decision issued as at the date of this review.

Form 6: the end of service, within a week

"The private-sector employer must provide the Organization with Form No. (6) within a week of the occurrence of any of the following: 1- the end of the insured person's service. 2- the end of an industrial apprenticeship or traineeship. 3- the end of work on a student summer scheme" (article 20 of the regulations).

Where the employer fails to notify an employee's end of service within that week, "it must pay an additional amount of (20%) of the contribution due for the last month for each month of delay", from the end of service until the form is sent, with part months disregarded. The amount is not due from the date of any of the following seven events (article 20):

• the form arriving on time with some data missing, provided it states the date service ended;
• service ending on the date the business passed to another party by sale, lease, merger or otherwise, provided the employee confirms the date;
• the employer signing a form drawn up by a NOSI inspector, or the minutes of the disputes committee or the inspector's record, stating the date service ended, or notifying NOSI of the end of service by letter;
• the employee joining another employer or being conscripted;
• the employer being declared bankrupt, or the business being liquidated, closed or dissolved;
• a court judgment against NOSI ending the employee's service;
• the employer filing the form for an employee absent without leave within two months of the start of the absence.

Example: an employee with an insurable wage of EGP 10,000 leaves on 1 March, and Form 6 is not sent until 20 May. The delay from 1 March to 20 May is two months once the part month is disregarded. The contribution for the last month is due in full for the month in which service ends, and it covers both shares, because the contributions the employer pays for its employees "include the share it bears and the share it must deduct from the insured person's wage" (article 70 of the regulations): at the general 2026 rates, 29.75% of 10,000, or EGP 2,975. The additional amount is therefore 20% × 2,975 × 2 = EGP 1,190.

The reason recorded for the end of service also matters to the employee. The form states the reasons for the termination and is signed by the employer and the employee; if the employee refuses to sign, the employer states why (article 192 of the regulations). One of the conditions for unemployment compensation is that the employee did not resign, absence from work being treated as resignation (article 87 of the Law). The reason should be recorded as it actually happened.

The consequences of omission

• "Contributions are computed on the basis of the data in these forms" (article 120 of the Law); where the employer does not submit them, contributions are computed on the last statement filed and then on the findings of NOSI's inspectors (article 64 of the regulations).
• Failing to submit data on employees' names, wages and contributions: a fine of EGP 20,000 to 50,000 on the person actually responsible for management, doubled for a repeat offence (article 167).
• Failing to insure an employee, or insuring him on other than his actual wage, is a more serious offence, with a fine of EGP 20,000 to 100,000 (article 168).

What this requires of the employer

• Form 1 for each employee within two weeks of joining, with the birth document and a copy of the contract.
• Form 2 each January, and whenever a law or decree amending wages is issued, with January wages checked against the new limits.
• Form 6 within a week of any employee leaving, with the correct reason; if the form is late, a letter to NOSI stating the date service ended stops the additional amount.
• Keep a copy of every form with its filing date, since contributions are computed on it.

The January date, with the other periodic deadlines, is in the Egypt tax and social insurance compliance calendar. The firm's Social Insurance & Labour Department prepares these forms and tracks their deadlines for its clients, as part of its payroll and social insurance services.

Nehal Saied, Partner
Chartered Accountant, Ministry of Finance, Egypt

Member, Egyptian Tax Society
Member, Egyptian Society for Public Finance and Taxation

Partner profile · Book a consultation

Disclaimer: This bulletin is prepared for general information on the legislation in force at the date of its publication. It does not constitute a professional opinion or tax or legal advice on any particular matter, and it should not be relied upon in place of advice based on an examination of the circumstances of each case. Nassef & Partners International accepts no responsibility for any action taken, or refrained from, in reliance on its contents. The positions stated remain subject to subsequent legislation and decisions.