Country Payroll Guide Algeria

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Key Facts

Capital
Algiers
Date format
dd.mm.yyyy
Currency
Algerian Dinar (DZD)
VAT
the standard rate is 19%

Contributions

Employers

Social Security Contributions
Social Security Contributions - 26%
Total Employment Cost
Total Employment Cost - 26%

Employees

Social Security
Social Security - 9%
Total Employee Cost
Total Employee Cost - 9%

Minimum Wage

Minimum Wage
The minimum wage in Algeria is 20000 DZD per month.

Payroll

Payroll Cycle
Monthly

Income Tax

Employee Income Tax (1)
0 - 10,000 DZD - 0%
Employee Income Tax (2)
10,001 - 30,000 DZD - 20%
Employee Income Tax (3)
30,001 -120,000 DZD - 30%
Employee Income Tax (4)
Over 120,001 DZD - 35%

Working Hours

General Working Hours

40 hours per week.

Overtime

By law, no employee can be forced to work overtime for more than 8 hours a week. Employees working overtime are entitled to an extra payment of at least 50% of their regular hourly pay.

Leave

Paid Time Off

Employees must be allowed a fully paid annual leave of up to 30 days.

Public Holidays

9 public holidays.

Sick Days

Sick leave can be used by employees by submitting relevant documents as proof of their illness. Sick pay is generally given from the first day of illness.

Maternity Leave

Required to provide maternity leave for all pregnant female employees. They should receive 14 weeks of paid maternity leave at their normal wage, starting at least a week from the time they’re admitted to the hospital.

Paternity Leave

Male employees can take three days of paid paternity leave as long as they submit a written notice and reason.

Termination

Termination Process

It is not compulsory to conclude an employment contract in writing. Oral agreements between employers and employees are legally permissible.

However, it’s important to remember that if the contract is prematurely terminated, the employee might be entitled to compensation. This is generally paid in cash and is given upon sudden dismissal provided that the employee isn’t being fired for misconduct.

Notice Period

The notice period is six months (up to 12 months for high-skilled employees), plus five days for each year of service up to a maximum of 30 days.

Severance Pay

Employees are entitled to severance if they have worked for at least two years.

Probation Period

An employer has the right to place a new employee on probation for a period that must not exceed 6 months or 12 months for employment of high positions.

Visa

Employment Visa

Most employees will need an Algeria work visa, which gives foreign nationals the ability to work in Algeria long-term.

If working for less than 90 days, employees can apply for a temporary work visa instead.