Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Algeria. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — our Algeria Employer of Record  services will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Algeria Works  

Workforce Africa makes it hassle free to hire and manage your remote staff in Algeria without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>

Employment and Forced Labour

• Contracts in Algeria are typically written in Arabic. They should clearly define:
• Job title and responsibilities
• Starting date and probationary period (usually three months)
• Working hours (standard is 40 hours per week including 30 min lunch break per day)
• Overtime compensation (The number of overtime hours paid is at least +50% of the normal price and must not exceed 32 hours per month)
• 75% overtime: This is when the employee works on Saturdays.
• Compensation details (salary, benefits)
• Paid leave entitlements (annual leave, public holidays, maternity/paternity leave)
• Termination clauses (notice period, severance pay)

Working Hours in Algeria

The standard workweek in Algeria is 40 hours. This typically translates to 8 hours per day for a 5-day workweek.

Observed National Holidays and Vacation

Ten national holidays are celebrated in Algeria:

• New Year’s Day – January 1st
• Agricultural New Year’s Day – January 12th
• Eid-al-Fitr (Shawwal 1st-3rd) – Date Varies (April)
• Workers’ Day – May 1st
• Hijri New Year’s Day (Muharram 1st) – Date Varies
• Independence Day – July 5th
• Achoura (Muharram 10th) – Date Varies
• Eid-al-Adha (Dhu-al-Hidja 10th -13th) – Date Varies
• Prophet Muhammad’s Birthday (Rabbi-al-Awwal 12th) – Date Varies
• Revolution Day – November 1st

Expats, Visas & Work Permits

To come into Algeria, most foreign nationals need a visa, which can be divided into three categories: tourist, business, and work. Although Algeria has embassies in most of the world’s major cities, there are not many consulates. The work visa requires paperwork from the Algerian Ministry of Labor, including a work contract and a work permit. An Algeria Employer of Record offers this service to help businesses manage their clients.

Paid Leave

• Annual Leave: Except for those employed in the southern provinces, who are entitled to 40 days (about 1 and a half months) of paid annual leave, employees in Algeria are entitled to 30 days (about 4 and a half weeks) of paid annual leave that can be accrued over a 12-month period.
• Public Holidays: As mentioned earlier, Algeria has numerous paid public holidays throughout the year (around 10 in total), providing additional paid time off.
• Maternity Leave: For a maximum of 14 weeks (about 3 months), pregnant women are entitled to maternity pay equal to 100% of their average regular salary, and the employee must stop working no later than one week before delivery. Employees are entitled to benefits for the first six months of their employment if they have worked at least nine days or 60 hours over the previous three months or 36 days (about 1 month 5 and a half days) or 240 hours (about 1 and a half weeks) over the previous twelve months.
• Paternity Leave: For the birth of a child, fathers are entitled to three days of paid paternity (emergency) leave.
• Sick Leave: Employees are entitled to 15 days of paid sick leave, beginning on the first day of sick leave with half pay and increasing to full pay on the sixteenth day of illness or earlier if the employee is admitted to the hospital. The National Fund of Social Security, which is financed by the mandatory social contributions made by both the employer and the employee, provides sick pay and reimburses medical expenses.
• Family Leave: Unpaid leave may be granted for severe illness or death of a close family member.

Statutory Deductions

• Payroll Calculation: Tax% or fixed amount paid by the employer per month: 26% of the pensionable salary. Social security contribution and vocational training tax 2% of the mass salary.
• Pension Contribution: A scale, not a rate communicated through the financial law applicable to the taxable salary/ social security contribution of 9% of the pensionable salary.

Health Insurance

Employers are mandated to contribute 12.5% of the gross wage towards social insurance. In Algeria, health insurance is provided through social insurance. The purpose of social insurance is to cover medical expenses and to grant a replacement income to an employed person forced to stop work because of illness or accident other than an accident at work.

Additional Compensation and Benefits

Mandatory Social Security: Employers in Algeria are required to contribute to a social security program that provides benefits for:

• Retirement: Employees contribute a part of their salary towards a pension upon retirement.
• Medical: Provides basic healthcare coverage for employees and their dependents.
• Work-Related Accidents & Illnesses: Covers medical expenses, rehabilitation, and potentially retraining in case of work-related injuries or illnesses.

Termination/Severance in Algeria

Termination

Employers must provide notice of dismissal absence and serious misconduct to the employee. Employees should receive a form of compensation when they are dismissed, if;

• They have been employed by the business for at least two years.
• They are fired for something besides misconduct.
• A mutual termination agreement with a month’s notice requirement is frequently used to end a contract.

Termination Process

A formal notice of termination must be provided in writing to the party concerned to ensure proper procedure. In the event of employer-initiated termination, employees are entitled to present a counterargument, which fosters fairness in the process. Upon termination, employers must issue a termination certificate detailing the reasons for dismissal.

Notice Period

• Employee: An employee can terminate the employment contract by providing written notice to the Employer. This written notice should specify the intended last day of employment.
• Employer: An employer must give the employee written notice of termination at least 30 days before the last day of employment. In this scenario, the employee is entitled to severance pay according to the Algeria Labour Law.

Severance Pay

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.