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Employer of Record Algeria

Global Expansion's Employer of Record services provide the ability to quickly grow, manage, and pay international teams, without the need for a local entity. Our award-winning tech platform plus integrated support services make hiring, managing and paying your global workforce a breeze.

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Hiring in Algeria - EOR Algeria

For companies that want to hire employees and run payroll in Algeria without first establishing a business entity or subsidiary, Global Expansion provides Employer of Record services (EOR Algeria).

Our EOR services streamline and simplify the global hiring process. We handle the core global HR tasks - compliance, contracts, payroll, global benefits, and more - so that you forgo hours of ongoing admin, human error, and risky compliance.

In Algeria, companies would historically establish a subsidiary or branch office to legally hire in that country. With Global Expansion, this step is no longer necessary. We have subsidiaries all over the world and therefore can legally hire on your behalf. The employees are ours only on paper and report directly to managers within your company.

Need assistance hiring in Algeria? Contact us about our International EOR  Service

Labor Laws in Algeria

Algeria’s Employment laws are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Algerian employment laws and Algerian policies here.

Employment Contracts

There are two (2) types of employment contracts in Algeria.

  • Limited (fixed) term contracts
  • Unlimited term contracts (can either be a verbal or written contract)

The law does not provide a maximum duration for employees with a fixed-term contract. However, the court can deem a contract as an unlimited term if there is more than one renewal.

The law sets out a minimum for employment entitlements and standards. Companies can provide more entitlements depending on the said agreement.

Oral agreements between the employer and employee are legally permissible regarding termination.

If the employee’s contract is prematurely terminated, they may be subject to compensation. Employers will typically pay in cash upon dismissal, provided the employee is not removed due to misconduct.

Employee Probation Period in Algeria

An employee may be employed on probation for up to six months, although highly qualified individuals may be subject to a probationary period for up to 12 months.

Annual Leave in Algeria

The Algerian Labor Law provides employees a minimum entitlement to 30 calendar days’ paid annual leave.

Holidays in Algeria

Here is the full list of public holidays in Algeria:

New Year’s Day 1st January
Yennayer 12th January
Labor Day 1st May
Eid al-Fitr 1st of Shawwal in the Islamic calendar
Independence Day of Algeria 5th July
Eid al-Adha 10th of Dhu al-Hijjah in the Islamic calendar
Islamic New Year 19 July 2023; usually late July-early August
Ashura 27 July 2023; annually on the 10th day of Muharram, the first month of the Islamic calendar
Prophet's Birthday 12th or 17th of Rabi’ al-awwal in the Islamic calendar
Revolution Day 1st November
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Maternity Leave in Algeria

A female employee is entitled to 14 weeks’ fully paid maternity leave, provided that the employee has worked:

  • at least either 15 calendar days or 100 hours during the three months preceding the date of the first medical acknowledgment of pregnancy
  • 60 calendar days or 400 hours during the 12 months preceding the first medical acknowledgment of pregnancy,

This maternity leave includes a compulsory period of not less than 6 weeks of leave before the expected date of birth and following delivery.

Paternity Leave in Algeria

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

Sick Leave in Algeria

Employees are entitled to 15 days’ paid sick leave at half salary; and full salary from the 16th day of sickness onwards.

Working Hours in Algeria

According to Algerian Labor Law, a typical work week runs from Sunday to Thursday and the maximum prescribed working hours for an employee is 40 hours per week.

This is based on a five-day week, and eight hours per day excluding a one-hour break. Friday is the mandatory day of rest each week.

Overtime in Algeria

Overtime hours must not exceed 20% of the maximum working hours (i.e. eight hours per week) and an employee must not be required to work more than a total of 12 hours per day.

If an employee is required to work additional hours, they are entitled to overtime pay, for a minimum of 150% of the normal hourly wage.

If circumstances require the employee to work on their weekly day off, they must be granted another day off (in lieu) and 150% off their wage for the overtime period.

Termination of Employment in Algeria

There are different termination rules for the two employment contract types in Algeria:

  • Fixed term contracts terminate on expiry.
  • Unlimited term employment contracts may only be terminated for cause or redundancy.

In order for an employee’s employment contract to be terminated for cause, there has to be serious misconduct. Dismissal is only permitted once a disciplinary procedure has been carried out. Failure to carry out a disciplinary procedure will result in the dismissal being deemed to be ‘abusive’ and this will have consequences for the employer, who will be required to pay termination compensation.

Under the Algeria Labor Law and Legislative Decree No. 94-09 dated May 26th 1994 (the Algerian Redundancy 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. The procedure requires the involvement of the local labor administration. Should there be a breach of the correct procedure, the termination of an employment contract on the grounds of redundancy shall be deemed to be ‘abusive’.

The termination of employment for reasons other than those identified above, or where termination has taken place without the correct procedures having been followed, is deemed to be ‘abusive’, giving right to compensation of no less than six months’ salary (where reinstatement is not possible), as well as uncapped damages as determined by the court.

Notice Period in Algeria

Article 73-5 of the Law 90-11 provides that dismissing workers who have not committed serious misconduct entitles them to a leave period, the minimum duration of which is fixed in collective agreements or conventions.

Article 73-6 of the same law provides that, during the leave period, the dismissed worker is entitled to two hours per day, cumulative and paid, to allow him/her to look for other jobs in Algeria.

The employer organization can fulfill the obligation to give the leave period by paying the dismissed worker a sum equal to the total remuneration he would have received during the same time.

Severance in Algeria

Regarding redundancy allowances, the employer must pay to any employee who is subject to a downsizing and who benefits from the unemployment insurance regime, an amount of compensation equal to three (3) months’ salary. (Cf. Art. 22 of the Decree 94-09.)

As per Article 23 of the Decree 94-09, this allowance is calculated based on the average gross monthly wage received during the twelve (12) months preceding the termination of the employment relationship.

In addition, Article 21 of the same Decree provides that employees to be terminated in the framework of a reduction in the workforce and who are compensated by means of a job, or admission to retirement or early retirement are not entitled to any compensation other than that due to them for paid leave.

  • In specific cases of serious fault, the dismissal allowance can be null.
  • Article 73-4 (paragraph 2) of the Law 90-11 provides that if the worker dismissal occurs in violation of the provisions of Article 73, as referred to above, it is presumed to be unfair.

The Court rules in the first and last resort, and decides either to reinstate the employee in the company and maintain his advantages or, in the event one or other parties refuses, to grant the worker financial compensation which may not be less than six (6) months' salary, without prejudice to any damages.

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Algeria Salary and Wages 

Average Salary in Algeria

The average salary in Algeria is 36,415.30 DZD a month ($259.33).

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Algeria Minimum Wage

The minimum Algerian salary is 20,000 DZD (about $142.43)

13th Month Salary in Algeria

There is no statutory requirement to pay the 13th or 14th month salary. In fact, structural measures aimed at tightening the link between pay and performance suggests that it is not customary practice to pay the 13th month.

Income Tax in Algeria

Under Algerian rules, individuals could be subject to tax:

  • On their worldwide income if they are considered as Algerian tax residents, irrespective of source or recharge arrangements.
  • On their income sourced in Algeria (received in consideration of a professional activity performed in Algeria) if they are not considered as Algerian tax resident.
  • Personal income taxation in Algeria is applied with progressive scale rates (marginal rate 35%).

On December 30th 2021, the Algerian Government enacted the Finance Act for 2022 (the Act). The Act re-introduces the PIT globality concept, by generalizing taxation at the fiscal residence and eliminating the exempting character for the taxation of some income categories with regard to their nature.

The re-adjustment of the PIT progressive scale is set forth below:

Taxable Income

PIT Rate

Not exceeding DZD 240,000 0%
From DZD240,001 to DZD 480,000 23%
From DZD480,001 to DZD 960,000 27%
From DZD960,001 to DZD 1,920,000 30%
From DZD1,920,001 to DZD 3,840,000 33%
Above DZD3,840,000 35%
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Social Security in Algeria

It is the employer’s obligation to contribute 26% of the employee gross salary (employer contribution) and 9% of gross salary (employee contribution). The social security contributions cover retirement, illness, unemployment, and work accidents.


Group 1083

Social Security


Group 1083


Employee Group 1083 9%
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Deductible Expenses in Algeria

Personal Deductions

The following personal expenses are fully deductible.

  • Alimony payments
  • Mortgage interest expenses
  • Taxes paid

The following personal expenses are not deductible.

  • Charitable contributions
  • Childcare expenses
  • Education expenses
  • Healthcare expenses
  • Life insurance premiums
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Business Deductions

The Finance Act 2022 revised business deductions as follows:

  • The deductibility threshold of low value expenses is raised from DZD30,000 to DZD 60,000.
  • The total amortization annuities for the depreciation of passenger vehicles is increased from DZD1,000,000 to DZD 3,000,000.
  • The threshold of deductibility of expenses relating to advertising gifts is raised to DZD 1,000 instead of DZD500 per item, within the limit of a total amount of DZD50,000.
  • The deduction threshold of subsidies and donations made to humanitarian associations is raised from DZD2,000,000 to DZD 4,000,000.
  • The annual deductibility limit for expenses relating to the renting of passenger vehicles is set at DZD200,000 and their maintenance cost's deductibility is limited to DZD 20,000 per vehicle.
  • Fines, confiscations, and contractual penalties paid to entities not taxable in Algeria are excluded from the right to deduction.

Immigration in Algeria

Learn about immigration requirements in Algeria, work visa requirements, work permits and more.

Need assistance hiring in Algeria? Contact us about our International EOR  Service

Temporary work permits and process

Foreign nationals who wish to work in Algeria under a contract that has a duration of less than three months must obtain a temporary work authorization, which can be renewed once a year.

Under Article 9 of Law No. 81-10, a foreigner who is assigned to Algeria for a duration of less than 15 days does not require a temporary work authorization. However, a temporary work visa is always required.

To obtain the Algeria work visa, a foreign national must justify his or her work in Algeria. After the granting of a temporary work authorization and work visa, a work permit is required. The validity of the Algeria work permit may not exceed two years, but it is renewable.

French nationals and extended visa

French nationals benefit from a special regime; they need to obtain a foreign worker declaration instead of a work permit. A foreign worker working as a managing director of an Algerian entity is exempt from the work permit requirement but needs a business professional card and, in some circumstances, a residence card as well.

Foreigners who are intending to extend their stay in Algeria beyond the duration specified in the visa must request a residence card 15 days before expiration of the visa’s validity. This card is valid for two years.

Residency visa / residence permit

A residence card with a validity of 10 years can be issued after a regular residency of 7 years in Algeria. The application form for the residence card must be sent to the local police office.

Visa requirements in Algeria

Learn about the visa policy of Algeria and all the ways to obtain a regular or a work visa to Algeria.

Entry visas are required for nationals of the European Union (EU), United States and certain Arabic countries, such as Egypt. Moroccan and Tunisian nationals are not required to have entry visas.

Foreign nationals who wish to enter Algeria for a period not exceeding 15 days can enter with a business visa. This Algerian visa allows the holding of meetings (internal or with clients) but not the provision of services.

Business Visa


Temporary Work Visa


Work Permit

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Value Added Tax (VAT) in Algeria

Value-added tax (Algeria VAT) at 19% or 9% or 0% is paid by the individual as the final consumer.

Renewal of the application of the reduced VAT rate (9%) for services related to the tourist activities, hotels, spas, classified tourist catering, travel and renting of tourist transport vehicles, for three additional years (until 31 December 2024).



Standard Rate


Reduced Rate



Withholding Tax in Algeria


Dividends and distributions of profits paid to a nonresident company or individual are subject to a 15% withholding tax, unless the rate is reduced under a tax treaty.


Interest paid to a nonresident is subject to a 10% withholding tax, unless the rate is reduced under a tax treaty.


Royalties are subject to a 24% withholding tax, unless the rate is reduced under a tax treaty.

According to the Finance Act 2022, the CIT withholding tax rate for income distributed between resident legal entities is set at 5%.

Withholding Tax







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Mandatory Benefits in Algeria

It’s important to understand the legal requirements of hiring employees in Algeria (whether it’s remote or in-office) so that your business remains compliant. As part of Global Expansion’s International PEO and Employer of Record (EOR) solution, we guarantee employees are registered with the appropriate government agency, and that they receive mandatory benefits

Additionally, all tax deductions associated with the employee are processed at the source, meaning our in-country entity will be responsible for paying all taxes to the authorities on behalf of the new hire.

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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice Period

  • Severance Pay

  • Social Security Benefits

Algeria Payroll

Here’s what you need to know to run payroll in Algeria.

There are three (3) primary payroll methods companies can choose from:

  1. Internal

    A company must have a large budget and staff to comply with the laws

  2. Remote

    Keeps all employees under one (1) payroll, and subsidiary employees will have different tax laws

  3. Algeria payroll processing company

    Outsourced company

The taxable period is the calendar year and the individual tax return has to be deposited before April 30th (for the FY19 annual tax return and as a result of the COVID-19 crisis, the deadline has been postponed to 30 June 2020).

Withheld income tax in Algeria has to be declared within 20 days following the month of income payment. Income tax in the framework of the individual tax return is paid upon receipt of tax notification. The withheld income tax is paid when depositing the monthly tax return.

Global Expansion’s EOR and international PEO solution can help you run payroll in Algeria with ease. In just a few clicks, your employees will be onboarded and enrolled into our payroll system. Additionally, we can invoice for clients locally, meaning we can enroll any new hire quickly and efficiently, whether they're an expatriate or a local national.

Here’s what you need to know to run payroll in Algeria.

Payroll Administration

The taxable period is the calendar year and the individual tax return has to be deposited before April 30th. Algeria follows a Pay As You Earn (PAYE) system for income tax purposes with regards to employment income. Thus, employers withhold and pay salary or wages after deducting income tax, social security contributions and other deductible expenses. Subsequently, employers pay the withheld income tax to the revenue authority upon receipt of tax notification.

Employee Benefits Management

Employers are responsible for developing an annual leave policy that complies with the statutory annual leave (30 days) mandated by law. They are also responsible for approving or canceling requests for non-annual leave (e.g. sick leave). Furthermore, employers manage and oversee social security contributions and the benefits accruing from them.

Payroll Compliance

Algeria’s labor legislation stipulates that employers provide employees with a payslip upon payment of each salary. Furthermore, employers are required by law to pay salaries/wages that are equal to or above the minimum wage rate (i.e. 20,000 DZD effective from 2020 onwards)

Our Role

Global Expansion’s International EOR and Global PEO solution can help you run payroll in Algeria with ease. We will not only ensure accurate payroll administration but also ensure regulatory compliance. Hence, this will save you the time and money needed to understand income tax and employment laws and regulations. In just a few clicks, your employees will be onboarded and enrolled into our payroll system in a seamless manner. Additionally, we can invoice for clients locally, i.e. we can enroll any new employee quickly and efficiently, regardless of whether they are an expatriate or an Algerian resident.

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Payroll Accrual in Algeria

Country Accruals Additional Information

It is the employer’s obligation to contribute 26% of the employee gross salary (employer contribution) and 9% of gross salary (employee contribution). The social security contributions cover retirement, illness, unemployment, and work accidents.




Health insurance in Algeria

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Payroll Accruals Additional Information

Annual Leave


Maternity Leave


Paternity Leave


Sick Leave


Overtime Pay


Severance Pay


Social Security Contribution


Accrued Benefits in Algeria

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees receive 15 days of severance pay per year of service after 2 years of service (4.109% of annual salary)

of annual salary
Vacations %

The Algerian Labor Law provides employees a minimum entitlement to 30 calendar days’ paid annual leave (8.21% of annual salary)

of annual salary
Notice %

The notice period is 5 days per year served capped at 30 days (1.37%)

Christmas Bonus Over Notifications % 0%
Vacations Plus %

In Southern wilayas provinces (extra 10 days holiday) (2.74% of annual salary)

of annual salary

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to 16.47%


Why use Global Expansion to hire in Algeria

Establishing a branch office or subsidiary in Algeria can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Algerian labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Algerian law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Algeria. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our International Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.


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