Algeria: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Algeria.

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Algeria is a country located in the continent of North Africa, sharing its borders with Tunisia, Libya, Niger, Mali, Mauritania, Western Sahara, and Morocco. The prominent industries in the country include oil and gas, other minerals, and solar.

Neeyamo provides assistance for the onboarding and management of employees in Algeria along with processing a firm's payroll, compliance, benefits, and more.

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Facts And Stats




Algerian Dinar (DZD)

Official Language


Fiscal Year

1 January to 31 December

Date Format


Country Calling Code

+ 213

Time Zone

Central European Time Zone (UTC+01:00)

Global Payroll


Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Social Insurance contributions - 9.00%

The income tax bracket is as follows:

Up to 240,000 DZD 0%
240,001 DZD to 480,000 DZD 23%
480,001 DZD to 960,000 DZD 27%
960,001 DZD to 1,920,000 DZD 30%
1,920,001 DZD to 3,840,000 DZD 33%
Above 3, 840,000 DZD 35%


Employer Taxes

Social Insurance contributions (to cover retirement, illness, unemployment, and work accidents): 26.00%

Payroll Cycle


Undoubtedly, payroll is a critical process for any organization. Pay cycle in Algeria refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.


In Algeria, it is common for employees to be paid on a monthly basis.

13th Month Cycle

In Algeria, 13th month wage depends upon the company.

Global Work


An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.

An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Algeria for operational tasks, with the knowledge that they have a cost-effective solution support their global payroll and HR requirements, as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The National Minimum Wage is 20,000 DZD/Month.


The employer may require any worker to work overtime beyond the legal working time without exceeding 20% of the legal working time (8 hours per week),

However, and in the cases expressly provided for below, the limits may be waived under the conditions determined in the collective agreements, namely:

  • Prevent imminent accidents or repair damage resulting from accidents;

  • Complete work, the interruption of which, due to its nature, may cause damage.

Employees working overtime are entitled to an extra payment of at least 50% of their regular hourly pay.

Data Retention Policy

Employers are required to record the date, nature and amount of each payment, including the number of benefits. These records must be kept for a period of four years following the date the taxes are withheld.

Hiring and Onboarding Requirements


The country’s constitution outlaws discrimination based on sex and requires that the government take action to ensure all citizens have equal rights and duties. In 2016, parliament introduced an article that encouraged businesses and public institutions to promote women to positions with greater responsibility.

The other rights and prohibitions included in the constitution are:

  • The right to join and form unions, as long as the individuals are citizens. 
  • The right for unions to exercise collective bargaining actions.
  • The prohibition of all forced or compulsory labour.

  • The prohibition of the employment of minors in dangerous, unhealthy, or harmful work conditions.

  • The prohibition of employment, salary, and work environment discrimination regarding age, gender, marital status, political beliefs, disability, national origin, union affiliation, and family ties.

While the law prohibits employing minors in dangerous conditions, the country has not decided on a national law or regulation that reveals the types of hazardous work for children. The minimum legal age for employment in the country is 16, but younger children may work as apprentices with permission from their parents or a legal guardian.


Any new employee should provide the following documents:

  1. Job offers accepted and signed
  2. Detailed CV
  3. Copy of identity card
  4. Copy of "Chifa" social security health insurance card
  5. Full bank details (document provided by the bank)


The general probation period in Algeria is 6 months.


National Holidays -

Algeria recognizes nine public holidays, paid by the employer, and specified in the law on hours of work, weekly rest, and paid leave.

Algeria's public holidays are:

• Jan. 1: New Year's Day.

• Mawlid Ennabaoui (anniversary of the birth of the Prophet).

• May 1: Labor Day.

• July 5: Independence Day and FLN.

• Idul Fitr (the end of Ramadan).

• Idul Adha (Sacrifice Feast).

• Awal Muharram (Islamic New Year).

• Nov. 1: Feast of the Revolution.

• Ashura (10th day of Muharram).

Employees that work a legal holiday are entitled to a compensatory rest of equal length and overtime pay.

Sick Leave

Sick leave can be used by employees by submitting relevant documents as proof of their illness. Sick pay is provided by social security as per below:

  • From the 1st to the 15th day of the sick leave, the amount of daily allowances is equal to 50% of the salary taken as a basis for contributions, after deduction of contributions and taxes.

  • From the 16th day of sick leave, in the event of long-term illness or the possibility of hospitalization, this amount amounts to 100% of the reference salary.

After two consecutive months of service with his employer, an employee is entitled to sick leave of not less than seven days with full pay and, after that, seven days with half payment in each period of twelve consecutive months of service, subject to production by the employee of a certificate of incapacity to work signed by a duly qualified medical practitioner or a person acting on the practitioner's behalf in charge of a dispensary or medical aid center.

Maternity Leave

It is required to provide maternity leave for all pregnant female employees. They should receive 14 weeks of paid maternity leave at their normal wage (could be 6 weeks before the expected date of delivery and 8 weeks after).

Paternity Leave

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

Other Leave

Compassionate Leave

Under the Regulation of Wages (General) Order, subsidiary to the Regulations of Wages and Conditions of Employment Act, compassionate leave is granted to allow an employee to attend to personal misfortunes such as death, accidents, or sickness concerning relatives and friends. The number of days he or she gets is deducted from the annual leave entitlement for the year.

Study Leave

Under the Civil Service Code of Regulations, public employees are entitled to study leave. Neither the Employment Act nor the Regulations of Wages and Conditions of Employment Act provide for an equivalent. But in practice, many companies and employers grant employees time off to go for courses, or to prepare for examinations.

Subject to prior notification and justification to the employer, absences without loss of remuneration for the following reasons:  

  • To perform tasks related to union representation or employee representation, according to the durations set by legal or contractual provisions;
  • To follow vocational or trade union training courses authorized by the employer and to take academic or professional examinations;

On the occasion of each of the following family events: the marriage of the worker, marriage of one of the worker's descendants, death of ascendant, descendant, and collateral to the 1st degree of the worker or his spouse, death of the worker's spouse, circumcision of a child of the worker, they benefit from three (3) paid working days.

However, in cases of birth or death, the justification comes later.


Notice period

The statutory notice period is 6 months (increased to 12 months for skilled employees), plus five days for each year of service up to a maximum of 30 days.

Severance pay

Under the Algerian Labor Law, an employer may terminate employment on redundancy grounds only if economic reasons justify such a measure and once all alternatives aimed at avoiding redundancy have been exhausted. A redundancy is subject to a mandatory procedure, decided after collective bargaining, involving the local labor administration.

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



The choices are limited for international employers under Algeria's immigration system.

Visitors on business are advised to keep their stay to no more than 15 days, even with a 90-day business visa. Foreign nationals who stay for longer than 90 days must get a Residence Permit.

Methods to obtain visa

In Algeria, there are two routes one can take to obtain a work permit:

  • Annex 13 Declaration: With a 15 day validity, extensions are possible for a maximum stay of 90 days per calendar year.

  • Work Permit: One-Year Validity with Possible Extensions.

Both permissions are issued locally, and each province also called a wilaya, is free to interpret the rules however it sees fit.

Employee Background Checks

Legal and Background Checks

Background checks depend on the organization.

Last updated on December 31, 2022

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