# Hiring in Palestine: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/palestine/
> Methodology: how providers are researched, scored and compared is documented at https://eoroverview.com/methodology/.
> Disclosure: EOR Overview is free to use. We may earn a referral fee from some providers; this never affects a rating or ranking position (https://eoroverview.com/disclosure/).
> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | EGP (Egyptian Pound) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | EGP 1,450 | 2013 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Corporate tax rate | 20% | 2026 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 4.3 weeks | 2019 |
| Severance pay | 23.1 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Maternity leave | 10 weeks | 2026 |
| Paternity leave | 0 weeks | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Unemployment rate | 24.4% | 2022 |
| GDP per capita | $2,592 | 2024 |
| Union density | 21.3% | 2019 |

## Overview

Palestine's employer cost picture is shaped by what the data record does not itemise as much as what it does. No employer social security breakdown is on file for Palestine, which tells you something practical: cost certainty here depends heavily on getting local legal advice before you set a budget. What the record does confirm is a monthly minimum wage of 1,450 EGP, a corporate tax rate of 20%, and a labour force of roughly 1.4 million people operating in an economy with a GDP per capita of around 2,592 USD. That combination points to a market where nominal wage floors are low but the regulatory environment around termination and notice carries real financial weight.

An Employer of Record (EOR) arrangement in Palestine means a third party employs your worker locally, handles payroll in EGP, and takes on compliance obligations under Palestinian labour law. Given an unemployment rate above 24%, there is talent available, but the statutory protections around severance and notice mean that exits can be costly if you have not planned for them from the start.

## Cost context

Unlike markets where employer social security rates are clearly published and easy to model, Palestine does not have itemised contribution rates on record here. What is confirmed is a 20% corporate tax rate and statutory obligations around severance (23.1 weeks) and notice (4.3 weeks), both of which add to the true cost of employment beyond gross salary. Until you have confirmed contribution rates from a local source, treat the on-costs as an open variable and get a verified figure before signing any employment agreement.

## Things to watch

A few specifics in Palestinian labour law deserve attention before you commit to a hire.

- Severance exposure is significant. The record shows 23.1 weeks of severance, which is a meaningful liability to carry, especially for longer-tenured employees. Build this into your total cost model from day one, not as an afterthought.

- Notice periods add to exit costs. At 4.3 weeks, the statutory notice period is not extreme, but combined with severance, the total cost of ending a contract can add up quickly. Factor both together when assessing headcount risk.

- The minimum wage floor is low but not the whole story. The 1,450 EGP monthly minimum is the legal floor. Any offer competitive enough to attract qualified candidates will sit well above it, so use it as a compliance baseline, not a budgeting anchor.

- Employer cost contributions are not itemised in public records. Because no official breakdown of employer social security contributions is on file, you should confirm current rates with a local legal or EOR partner before finalising your cost model.