In Algeria, a large number of the labor population is employed in the services sector. Get to know more about the rules and regulations prevailing in the country for a smooth employment process.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Employment contracts can be oral or written, but a written form is mostly preferred. The language of the contract can be Arabic or French, depending on the familiarity of both parties.
Probation Period
Algeria follows a probationary period of six months.
13th Month Pay
Algeria does not have statutory 13th-month pay.
Employee Benefits
Below are some statutory benefits that Algerian employers offer their employees:
- Maternity leave
- Paternity leave
- Social security benefits
Algeria follows a monthly payroll cycle
The minimum wage in Algeria is 20,000 Algerian dinars per month.
The Algerian labor law prohibits forced overtime employment. No employee should work beyond 8 hours of overtime a week. However, they are entitled to overtime pay of 50% of the regular hourly rate for their extra work.
Employer Payroll Cost:
Algeria has extensive social security benefits and covers retirement, illness, unemployment, and work accidents. Employers contribute 26% of the employees’ gross salary for social security contributions.
Employee Payroll Cost:
Employees contribute 9% of their gross salary towards social security.
Employee Income Tax
Algeria follows a progressive income tax structure for individual taxpayers.
| Annual taxable income (DZD) |
Rate (%) |
| Less than 240,000 |
0% |
| 240,001 to 480,000 |
23 |
| 480,001 to 960,000 |
27 |
| 960,001 to 1,920,000 |
30 |
| 1,920,001 to 3,840,000 |
33 |
| More than 3, 840,000 |
35 |
VAT
A standard rate of 19% is followed in Algeria.
Permanent employment in Algeria can be terminated due to redundancy, serious misconduct, or economic reasons.
The notice period followed in Algeria ranges from six to twelve months.
Severance pay
Severance pay is allowed only for those employees who completed at least 2 years of employment in the firm. Employees will be entitled to 15 days’ wage for each completed service year.
Entry visas are required for specific nationalities (eg: EU, US), while citizens of countries such as Morocco and Tunisia do not need an entry visa. Foreigners need temporary work authorization along with a work visa to stay and have employment in the country. It is renewable and is given a maximum validity of 2 years.