Registering and De-registering of Employees in Social Insurance

Youssry Saleh & Partners 22 Dec 2022 3193 Views

Social protection systems are institutionalized mechanisms that help individuals to manage social risks or to cushion their impact once they occur and it is an important component of the social contract between a government and its citizens in any country.

In Egypt, Social Insurance is a highly developed Social Security System with different schemes for different groups of workers, as the Egyptian Social Insurance and Pensions Law No.148 of the year 2019 and its Executive Regulation No.2437 of the year 2021 made it mandatory for every employed person to enroll in the Social Insurance as stated in Article No. 2 of the aforementioned Law.

The law carries out employment from the age of 18 up to the age of 65 years, depending on the circumstances; In addition, the social insurance system includes Old age, disability and death insurance, Work injury insurance, Sickness insurance, and Unemployment insurance.

The National Organization for Social Insurance (NOSI) is in charge of managing the two social insurance funds. First, the Government Social Fund, which includes Civilian employees of the state’s administrative apparatus, public bodies, public institutions, and economic units affiliated with any of these bodies. And the second is the Public and Private Business Sector Fund, which includes all other categories such as private and public sector employees, employers, and self-employed people.

The Authority creates a social insurance file for each insured who is subject to the provisions of the law, provided that this file includes the data and documents necessary to determine and calculate any obligation that the insured may bear in accordance with the provisions of the law.

In accordance with the Social Insurance Law No.148 of the year 2019 and its Executive Regulations, the employer is obligated to open a social insurance file for the company as of the commencement date of the activity at the Social Insurance office affiliated to the company’s headquarters.

The employer submits a Subscription Application Form to the Social Insurance accompanied by the following documents:

1- Company’s Commercial Register;

2- Company’s Articles of Association;

3- Original Tax card;

4- Original lease agreement of the company’s headquarters, getting its date authenticated at the Notary Public Office;

5- Original signature form from the employer countersigned by a bank, or the person shall be present;

6- Form (2) of social insurance; and

7- Form (7) of social insurance for employers. In addition, the following are also required for the employer:

• Copy of passport/ID ;
• Birth certificate ; and
• Social insurance printout.

The documents for enrolling employees in the Social Insurance are:

• Form No.1 of the social insurance for employees;
• Copy of national ID;
• Birth certificate;
• Employment contract;
• Graduation certificate;
• Form (6) (the termination of the insurance contribution) in the event that the employee was insured by his/her previous employer;
• Copy of the employee’s syndicate card (if any);
• Military service certificate (for men only); and
• Social insurance printout.

The maximum limit of the Basic Salary which is subject to social insurance has increased in 2022 to 9,400 L.E per month, and the minimum Basic Salary which is subject to social insurance has increased to 1,400 L.E per month. Moreover, it may increase by the decision of the Chairman of the National Organization for Social Insurance.

 

On the other hand, the documents and procedures for the omission of employees from the company’s social insurance file in case of resignation, dismissal or termination:

The employer is obliged to submit Form (No.6) of social insurance for the employees who have resigned or have been dismissed or terminated from the company to the social insurance office with the following, in order to omit the employees from the social insurance file of the company:

• Resignation letter; and
• Form (6) of the social insurance.

The afore-mentioned applies where the employee submits his/ her resignation. However, in the event that the employee has been dismissed by the company or made a mistake that necessitated his dismissal from the company, the following documents shall be submitted:

• Dismissal decision annexed to the company’s administrative investigation report or the notice of dismissal of the employee issued by the company; and
• Form (6) of the social insurance.

Upon completion of the procedures of resignation, dismissal or termination of the employee(s) and their omission from the company’s social insurance file, the company will receive a copy of Form (No.6) for said employee(s).

Given the above, according to Article No.168 of the Egyptian Social Insurance Law No.148 of the year 2019, the actual person responsible for the management of the employer or the competent employee in government agencies, the public sector, or the public business sector who does not participate in the authority on behalf of any of his workers subject to the provisions of this law or does not participate on their behalf for periods or real wages shall be punished with a fine of not less than twenty thousand pounds and not more than one hundred thousand pounds. Moreover, The same penalty shall be imposed on the actual official responsible with the employer for the administration or the competent employee in the government agencies, the public sector, or the public business sector, who bears the insured any share of the insurance expenses not provided for in this law, and the court shall decide on its own to oblige him to return to the insured the value of the insurance expenses.