Payroll and Benefits Guide Algeria
Last updated: May 02, 2023
Employer Payroll Contributions
Social Insurance contributions (to cover retirement, illness, unemployment, and work accidents)
Total Employment Cost
Employee Payroll Contributions
|9%||Total Employee Cost|
|9.00%||Social Insurance contributions|
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|
The minimum wage in Algeria is 20,000 DZD per month.
MINIMUM WAGE (PER MONTH)
The payroll cycle in Algeria is monthly.
There is no statutory requirement to provide a 13th salary.
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.
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 hours per week and 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.
Paid Time Off
The Algerian Labor Law entitles employees to 30 days of 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.
There are 12 national holidays in 2023.
Employees are entitled to 15 days of paid sick leave at half salary from their first day of sick leave and full salary from the 16th day of sickness onwards or if the employee is admitted to the hospital prior to the 16th day.
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.
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.
For employees within their first six months of employment, employees 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.
PAID MATERNITY LEAVE (DAYS)
Fathers are entitled to 3 days paid paternity (emergency) leave for the birth of a child.
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.
An employee can take a maximum of 30 calendar days’ paid leave to perform Hajj, once in their employment.
3 days paid leave for Marriage of the employee (or their dependent)
3 days paid leave for bereavement
Employers must provide notice of dismissal absence and serious misconduct to the employee. Employees should receive a form of compensation if they are dismissed, if;
- They have worked for the company for at least two years.
- If they are terminated for reasons other than misconduct
It is common to terminate using a Mutual Termination Agreement with a month 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.
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
The general probation period in Algeria is 6 months.
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.
The Standard rate of VAT in Algeria is 19%.
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Public Holidays Calendar
|Sunday||Jan-1||New years day|
|Wednesday||Feb-22||Day of Fraternity and Cohesion|
|Saturday||Apr-22||Eid ul Fitr||Tentative|
|Thursday||Jun-29||Eid al Adha|
|Wednesday||Nov-1||Anniversary of the Revolution|