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Algeria

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Overview

Capital
Algiers
Currency
Algerian Dinar (DZD)
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
Payroll Frequency
Unknown
Employer Taxes
26%

Contributions

Employer

Employer Payroll Contributions

26.00% Social Insurance contributions (to cover retirement, illness, unemployment, and work accidents)
26% Total Employment Cost

Employee

Employee Payroll Contributions

9.00% Social Insurance contributions
9% Total Employee Cost

Employee Income Tax

0% up to 240,000 DZD
23% 240,001 DZD to 480,000 DZD
27% 480,001 DZD to 960,000 DZD
30% 960,001 DZD to 1,920,000 DZD
33% 1,920,001 DZD to 3,840,000 DZD
35% above 3,840,000 DZD

Minimum Wage

General

The minimum wage in Algeria is 20,000 DZD per month.

Payroll

Payroll Cycle

The payroll cycle in Algeria is generally a monthly cycle, with wages paid by the last working day of each month. However, hourly, weekly, and daily paid employees are paid every two weeks.

13th Salary

There is no statutory requirement to provide a 13th salary.

Working Hours

General

The standard workweek in Algeria consists of a maximum of 40 hours per week (8 hours a day, 5 days a week). The working week typically runs from Sunday to Thursday, as Friday is the statutory day of rest each week.

Overtime

All work above the standard weekly working hours is to be paid as overtime and is regulated by employment contract/collective agreements and may only be requested by the employer in exceptional circumstances.  Overtime hours must not exceed 8 hour per week and no more than a total of 12 hours per day.  Where an employee is required to work additional hours, they are entitled to overtime pay, of a minimum of 150% of the normal hourly rate.

Working Week

Sunday–Thursday

Leave

Paid Time Off

The Algerian Labor Law entitles employees to 30 days paid annual leave accumulated over 12 months, with the exception of those employees working in the Southern provinces, who are entitled to 40 days paid annual leave.

Public Holidays

There are 12 National Holidays in 2022.

Sick Days

Employees are entitled to 15 days paid sick leave at half salary from their first day of sick leave, and full salary from the 16th day of sickness onwards or should the employee be admitted to hospital prior to the 16thday.

Sick pay and the reimbursement of medical expenses are funded by the National Fund of Social Security, based on the mandatory social contributions paid by the employer and the employee.

Maternity Leave

Pregnant women are entitled to maternity pay of 100% of their average regular salary (based on average for their position) for a maximum of 14 weeks and the employee must stop working at the latest one week before confinement.

To receive these payments, a registered doctor or qualified professional must have assisted at the birth.

Employees within their first six months of employment are entitled if they have worked at least 9 days or 60 hours during the three preceding months; or 36 days or 240 hours during the 12 preceding months.

Paternity Leave

Fathers are entitled to 3 days paid paternity (emergency) leave for the birth of a child.

Parental Leave

Female employees are entitled to take part-time paid parental leave for up to 18 weeks, where they will receive 50% of maternity benefits and 50% of their regular salary.

Other Leave

An employee can take a maximum of 30 calendar days’ paid leave to perform Hajj, once in their employment.

3 days of paid leave for the Marriage of the employee (or their dependent)

3 days of paid leave for bereavement

Termination

Termination Process

Employers must provide notice of dismissal absence and serious misconduct to the employee.  Employees should receive a form of compensation if:

  • They have worked for the company for at least two years.
  • If they are terminated for reasons other than misconduct

Notice Period

The statutory notice period is 6 months (increased to 12 months for skilled employees), plus five days for each year of service up to a maximum of 30 days.

Severance Pay

Under the Algerian Labor Law and Legislative Decree No. 94-09 dated 26 May 1994 (the Algerian Redundancy Law), an employer may terminate employment on redundancy grounds only if economic reasons justify such a measure and once all alternatives aimed at avoiding redundancy have been exhausted. A redundancy is subject to a mandatory procedure, decided after collective bargaining, involving the local labour administration.

The Severance Pay in Algeria depends on the Duration of Employment, as below:

  • Mandatory -1 month
  • Collective Agreement – 1 month
  • Minimum Employment Period – 12 months

Probation Period

The general probation period in Algeria is 6 months.

VISA

VISA

Most foreign nationals require a visa to enter Algeria and there are essentially three main types of visas: tourist, business, and work. While there are Algerian embassies in most major capitals around the world, there are not many consulates.

The work visa is more complex and needs documents from the Algerian Ministry of Labour, including the work contract and a work permit. Unfortunately, the work visa application can be a lengthy process.

VAT

General

The Standard rate of VAT in Algeria is 19%.