How to hire and pay employees in Algeria

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Algeria Facts and Stats

Currency

Algerian Dinar DZD.

Employer Costs

Estimated at 25%of employee’s salary.

Languages

Arabic, French and Berber (In some communities).

Population

46 million.

Payroll frequency

Monthly.

Hiring

Grow your team in Algeria

No entity, no problem

To start growing your team in Algeria, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Algeria

Hiring employees in Algeria offers both opportunities and challenges for businesses. On the positive side, Algeria has a young and growing workforce, with many educated and skilled individuals, particularly in fields like engineering and technology. The country also has relatively low labour costs compared to other regions, making it an attractive option for companies looking to manage expenses. Additionally, Algeria’s strategic location and natural resources provide potential for growth in industries like energy, manufacturing, and services. However, there are significant challenges as well. Bureaucracy and complex labour regulations can make the hiring process cumbersome, and there is a high level of youth unemployment, which, while offering a large labour pool, can also indicate challenges in matching skills to job opportunities. Political and economic instability in the region can further complicate long-term business planning, and infrastructure issues, particularly in transportation and communication, can impact business operations. Overall, while Algeria presents a promising labour market, businesses must navigate a challenging environment to fully capitalize on these opportunities.

Why Algeria is good for remote workers

Employers should consider hiring remotely in Algeria due to the country’s large, multilingual talent pool, particularly in French and Arabic, which can be advantageous for businesses targeting North African and Middle Eastern markets. Algeria’s time zone overlaps significantly with Europe, facilitating real-time communication and collaboration. Additionally, remote hiring in Algeria allows companies to tap into the growing pool of skilled professionals in sectors like IT and engineering without the need to establish a physical presence in the country, which can reduce overhead costs and minimize exposure to local bureaucratic challenges. Furthermore, the Algerian government has been increasingly supportive of digital initiatives, improving internet infrastructure and fostering a more conducive environment for remote work. By hiring remotely in Algeria, employers can access a diverse and talented workforce while benefiting from lower operational costs and the flexibility to scale their teams according to business needs.

Start growing your remote workforce now

Benefits

Mandatory Benefits

Social Security.

Paid Annual Leave.

Public Holidays.

Maternity and Paternity Leave.

Sick Leave.

Employment

Probation

In Algeria there is a mandatory probation period for new employees, typically ranging from 1 to 3 months during which the employer and employee possess the right to terminate their employment without any notice or severance pay.

Emerald Technology can onboard employees in Algeria within 48 hours.

Insurance
01.

Health Insurance:

In Algeria, there is a public healthcare system that provides free or low-cost services and this is funded by the government through taxation and The National Social Security Fund manages health insurance for employees. This public system covers many services such as general outpatient care, hospitalization and preventive care. All employees in the formal sector must register for health insurance under CNAS. Employees contribute around 9% of their gross salary to health insurance and employers contribute approximately 26% of employee’s salary for health insurance and social security.

02.

Social Security:

In Algeria, employers and employees contribute to social security funds managed by the National Social Insurance Fund (CNAS), which covers health insurance, maternity benefits, pensions, and family allowances. Employees contribute approximately 9% of their gross salary and employers contribute around 26% of the employee’s gross salary. These contributions fund pensions, healthcare coverage and family allowances.

Leave Policy
01.

Maternity Leave:

Female employees are entitled to a minimum of 14 weeks of maternity leave. During this period, they receive full pay, with costs covered by social security.

02.

Paternity Leave:

There is no specific statutory paternity leave mandated by Algerian law. However, some companies may offer paternity leave as part of their internal policies.

03.

Sick Leave:

Employees are entitled to paid sick leave, typically with compensation provided through social security. The duration and conditions for sick leave are outlined in labour regulations and collective agreements.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Algeria within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

Notice periods Typically, the notice period is between 1-3 months depending on the employee’s length of service, seniority and the type of contract.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Severance In Algeria, severance pay is granted to employees on permanent contracts (CDI) when let go without fair cause. It is usually calculated as one month of salary per year of service. Severance is not provided if the dismissal is a result of serious misconduct or if the employee resigns. Compensation may be granted if those on a fixed-term contract in the case of early termination of the contract.

Time off

Statutory Time off

Employees are entitled to a minimum of 12 working days of paid leave per year.

Public Holidays

  • New Year’s Day
  • Amazigh New Year
  • Eid al-Fitr
  • Workers Day
  • Eid al-Adha
  • Independence Day
  • Islamic New Year
  • Ashura The Prophet’s Birthday
  • Revolution Day
Emerald Technology can onboard employees in Algeria within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

As of the latest update, the national minimum wage in Algeria is 20,000 Algerian dinars (DZD) per month.

02.

Working Time and Overtime:

The standard working week in Algeria is 40 hours, typically through five days of 8 hours. Overtime: For overtime in Algeria, it is compensated at a minimum of 150% of the regular employee salary.

03.

Salary Payments:

Salaries are usually paid monthly. Employers are required to ensure timely payment of wages, typically by the 10th of the following month.

04.

Bonuses in Algeria:

Algerian law does not mandate a 13th-month salary or bonus.

05.

Income Tax:

  • Up to 120,000 DZD: 0%,
  • 120,000 – 360,000 DZD: 20%,
  • 360,000 – 1,440,000: 30%,
  • Above 1,440,000: 35%.
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