Algeria
Employ in Algeria without an entity.
A contract under Algeria's labour law, pay in dinars, and social security and income tax handled every month. One contact and one invoice.
The facts of employing in Algeria.
Paid in dinars, every month.
Wages are paid in Algerian currency.
A 40-hour week.
Over at least five days, with Friday the weekly rest day by law.
Income tax from 0% to 35%.
Pay up to DZD 30,000 a month is exempt.
Social security of 34.5%.
Through the CNAS, explained below.
What employing in Algeria involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- Contracts
A job with no written contract is presumed permanent. A fixed-term contract is allowed only in five set cases, such as replacing an absent employee or a seasonal peak.
- Trial period: up to 6 months, or 12 for highly qualified posts.
- Either side may end it without notice or payment.
- CNASSocial security
Health and maternity, pensions, unemployment, early retirement and work accidents, through one contribution.
- 25% from the employer and 9% from the employee.
- A further 0.5%, paid by the employer from its social-works fund.
- 34.5% of gross pay in total.
- Training taxes
Two employer charges, worked out on each half-year's payroll.
- 1% for vocational training, less what is spent on training, and not due under 20 staff.
- 1% for apprenticeships, less what is spent on apprenticeships.
- Both are paid by the 20th of the month after the half-year.
- IRGIncome tax
Withheld by the employer each month, on an annual scale.
- 0% up to DZD 240,000 a year, then 23%, 27%, 30% and 33%, and 35% above DZD 3,840,000.
- Pay up to DZD 30,000 a month is exempt.
- Leave
Annual leave builds up at two and a half days for each month worked.
- Up to 30 days a year, with at least 10 more in the southern provinces.
- Maternity leave: 150 days, paid by the CNAS at 100% of the daily wage after social security and tax.
- Ending employment
The law sets no minimum notice and no severance. Collective agreements set both.
- During notice, the employee has two paid hours a day to look for work.
- Dismissal for serious misconduct follows the internal rules, with a written decision and a hearing.
- A dismissal that skips that procedure is annulled, with at least the pay the employee would have earned.
- Without serious misconduct it is presumed unfair: reinstatement or, where either side refuses it, at least six months' pay.
Hiring in Algeria, step by step.
You choose the person
And agree the role and the salary in dinars.
The contract is put in place
Under Algeria's labour law, with a work permit where one is needed.
They are paid monthly
In dinars, with social security and income tax handled.
You get one invoice
With every other country you hire in.
Questions about employing in Algeria
What does an employer pay into social security in Algeria?
Employers in Algeria pay 25% of gross pay to the CNAS, and employees pay 9%. A further 0.5% is paid by the employer from its social-works fund, so the total is 34.5%. It covers health and maternity, pensions, unemployment, early retirement and work accidents. Employers also owe two training taxes, each 1% of the half-year's payroll less what they spend on training.
Can salaries be paid in foreign currency?
Is there statutory severance?
Can we employ a foreign national?
Employing in Algeria, worked through in full.
The guide goes further than this page.
- Hiring in Algeria: the work permit, the resident card and the contract, step by step
How you hire in Algeria without an entity of your own: the work permit step by step, moving someone already in Algeria, who can fill a role, the contract, the employee test, leave, and what has changed.
7 min read