Employer of Record in Algeria

Businesses can only operate smoothly in Algeria if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Algeria below, to avoid any compliance issues.

Employment Contract Requirements

Typically, employment contracts in Algeria should be provided to an employee within 7 business days, barring any special requests or alterations to the standard contract. When hiring in Algeria, businesses need to consider the following formalities:

• Overtime
• Working Hours
• Leave / Time Off
• Probation Period
• Termination Notice Period

Onboarding Process

We can help you get a new employee started in Algeria quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Algeria

In Algeria, the standard workweek is 40 hours, typically from Sunday to Thursday, with Friday designated as a day off. Work hours should be spread over at least five days, and if continuous, the employer must provide a break not exceeding one hour, with half of it counted as work time.

Overtime in Algeria

In Algeria, overtime is regulated by the employment contract or collective agreements. Employers can request overtime only in exceptional cases, with limits of eight hours per week or 12 hours per day. Employees working extra hours are entitled to overtime pay, which is at least 150% of their regular hourly rate.

Probation Period in Algeria

In Algeria, newly hired workers may undergo a probationary period lasting up to six months, and for highly qualified positions, this period can be extended to twelve months.

Fiscal Year in Algeria

1 January - 31 December is the 12-month accounting period that businesses in Algeria use for financial and tax reporting purposes.

Payroll Cycle in Algeria

The payroll cycle in Algeria is usually monthly, with employees being paid in accordance with the employment contract.

Minimum Wage in Algeria

The minimum wage for employees in Algeria is typically 125 DZD per hour, amounting to ~20,000 DZD per month for a typical 40 hour work week.

Bonus Payments in Algeria

Although not mandated by law, additional salary payments in the form of a 13th cheques are typically made during certain times of the year, such as at the end of the year or during religious holidays like Eid al-Fitr or Eid al-Adha.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 25% on top of the employee salary in Algeria.

Employee Payroll Tax Contributions

In Algeria , the typical estimation for employee payroll contributions cost is around 9%.

Individual Income Tax Contributions

Individual income tax rates in Algeria are progressive, ranging from 0% to 35%

Pension in Algeria

Employers must contribute 10% of an employee's salary to their retirement fund and 0.25% to an early retirement pension. Retirement pension eligibility requires 15 years of work incl. 7.5 years of contributions (halved for mujahideen). It also requires the worker to be at least 60 years old or have completed 32 years of activity. Women can retire at 55 with a pension and receive a one-year reduction for each child raised (up to 3).

Mandatory Leave Entitlement in Algeria

The annual leave entitlement in Algeria is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Algeria

Algeria has 10 mandatory national public holidays in a year.

Paid Time Off in Algeria

Algerian employees typically receive 30 days of paid annual leave, accrued over 12 months. However, those working in the southern provinces are entitled to 40 days of paid annual leave.

Maternity Leave In Algeria

Female employees in Algeria receive maternity pay equivalent to 100% of their average regular salary for up to 14 weeks. To qualify, they must stop working one week before childbirth, and a qualified professional must assist in the birth. For eligibility, employees in their initial six months need to have worked for a minimum of 9 days or 60 hours in the past three months, or 36 days or 240 hours in the past 12 months.

Paternity Leave In Algeria

Male employees can take 3 days of paid emergency leave for the birth of a child.

Sick Leave In Algeria

In Algeria, employees get 15 days of paid sick leave, receiving half their salary initially. From the 16th day or if hospitalized earlier, they receive full pay. The National Fund of Social Security covers sick pay and medical expenses through mandatory contributions from both employer and employee.

Parental Leave In Algeria

Female employees in Algeria are entitled to up to 18 weeks of part-time paid parental leave, receiving 50% of maternity benefits and 50% of their regular salary during this period.

Termination Process in Algeria

In Algeria, employers are required to provide notice of dismissal for reasons of absence or serious misconduct. If an employee with at least two years of service is terminated for reasons other than misconduct, they are entitled to compensation. Acceptable reasons for fair termination include misconduct and redundancy.

Notice Period in Algeria

In Algeria, dismissed workers, except for serious misconduct, are entitled to a leave period with a minimum duration as per agreements. During this leave, they receive two hours daily for job search, accumulating over the leave. Notice periods vary:

• General staff: 6 months plus five days per year, max 30 days.
• Managerial staff: 12 months plus five days per year, max 30 days.

Severance in Algeria

In Algeria, termination due to redundancy is allowed only for economic reasons after exhausting all alternatives. The process involves collective bargaining and approval from the local labor administration. Severance pay varies based on employment duration:

• Mandatory: 1 month
• Collective Agreement: 1 month
• Minimum Employment Period: 2 months