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Overview
Algerian Dinar (DZD)
CURRENCY
Algiers
CAPITAL
monthly
PAYROLL FRECUENCY
12
PUBLIC HOLIDAYS
0 to 26
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Algeria
Employer
Company Payroll contributions
0% - 26%
Social Insurance Contributions. In this case, it is to cover illnesses, retirement, unemployment, and work accidents.
0% - 26%
Total Employment Cost
Employee
Worker Payroll Contributions
- 9%
Social Insurance Contributions
0% - 9%
Total Employee Cost
Employee Income Tax in Algeria
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
Payroll Contributions in Algeria
Payroll Cycle
With Payroll services, you can have a monthly cycle, in which the employer provides payments on the last business day of the month.
13th Salary
In Algeria, companies do not need to pay this benefit.
Employee Benefit in Algeria
The labor law does not establish more common benefits for the citizens of Algeria.
Visa and work permit in Algeria
One thing to consider when working with contractor management services is that they will require a visa for foreign employees. For the rest, there are three types of visa in the country, namely tourist, business, and work. However, you will be able to find embassies in the capitals of many countries but not many consulates to carry out the procedures.
Additionally, the work visa is the most difficult to obtain since you need documents from the Ministry of Labor. In addition, the employee will need a contract, as well as a work permit. Although this process can be quite lengthy, we recommend working with an Employer of record to make it easier.
VAT in Algeria
In Algeria, this tax is 19%.
Working Hours in Algeria
General
Employees in Algeria must work 8 hours a day, 5 days a week, for a total of 40 hours a week. In addition, the work week is from Sunday to Thursday since Friday is the mandatory rest day.
Overtime
With the Employer of record in Algeria, you will be able to calculate these hours, which are defined by employment contracts or collective agreements. However, these hours include those that exceed the weekly hours. Likewise, the employer may only request the worker to fulfill these hours in special cases.
Overtime hours must not exceed more than 8 hours per week, nor more than 12 hours per day. Hence, with outsourced payroll in Algeria, you can calculate the payment for workers for overtime, which must be 150% of the salary.
Working Week
Sunday to Thursday.
Employee Termination in Algeria
Termination Process
In Algeria, the employer must provide notice of dismissal absence and serious misconduct to the employee. At the same time, the employee must receive compensation, which can be paid through a PEO, under the next conditions:
- Has completed at least 2 years of service in the company.
- If the reason for the termination was not your misconduct.
Notice Period
The mandatory notification period is 6 months but for specialized employees, it is 12 months. In addition, you must add 5 days for each year of service up to a maximum of 30 days.
Severance Pay
The Algerian Labor Law and Legislative Decree No. 94-09 of May 26, 1994, the employer can terminate employment for redundancy. However, they may only do so if there are economic reasons to take such action. Likewise, all possible measures must have been exhausted to avoid redundancy, which you can find out about through the Employer of record in Algeria.
Besides, redundancy needs a compulsory procedure, which is decided by collective bargaining involving the local labor administration.
On the other hand, the compensation will depend on the length of service of the employee in the company, as explained below:
- Mandatory – 1 month
- Collective agreement – 1 month
- Minimum employee period – 12 months
Probation Period
When you hire employees in Algeria, you should consider that the trial period is generally 6 months.
Employee Leaves in Algeria
Paid Time Offs
Algerian Labor Law states that employees must receive 30 days of paid vacation per year. In contrast, employees working in the southern provinces receive 40 days of paid vacation.
Public Holidays
There are 12 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
With payroll outsourcing, you can have an exact calculation of the sick pay of the worker. Thus, employees must receive half salary during the first 15 days and full salary from day 16 onwards. They are also entitled to full salary if the employee must be hospitalized before the 16th day.
Likewise, this leave and the refund of medical expenses are paid by the National Fund of Social Security in Algeria. Also, this payment comes from employer and employee Social Security contributions.
Paternity Leave
Fathers are entitled to receive 3 days of leave for the birth of a child.
Paternal Leave
Since female employees will be able to take part-time leave for up to 18 weeks, a Professional Employment Organization may be able to grant it. Also, they will be able to calculate the payment of 50% of the maternity benefit and 50% of the regular salary.
Other Leave
Once you hire the services of an Employer of record in Algeria, they can grant this license for the Hajj. Thus, the employee is entitled to 30 paid days but only once during their entire employment.
Likewise, the worker can receive 3 days of paid leave for Marriage (or that of a dependent). Similarly, they may receive 3 days of paid bereavement leave.
Maternity Leave in Algeria
The services of an Employer of record in Algeria to calculate the payment for pregnant women according to their salary. Thus, they must receive 100% of the salary for 14 weeks and they will have to stop working one week before the delivery. However, to receive this payment, a qualified physician must have attended to the delivery.
Moreover, female employees are only entitled to this benefit in the next cases:
- Having worked for at least 6 months, with 9 days or 60 hours worked in the previous three months.
- Instead, they must have worked 36 days or 240 hours in the preceding 12 months.
There are 70 leave throughout the year.