Payroll and Benefits Guide - Algeria

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Currency

Algerian Dinar
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Capital

Algiers
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Employer Taxes

26%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Algeria has a rich cultural heritage that is influenced by its indigenous Berber population, Arab culture, and French colonial legacy.

The national animal of Algeria is the Fennec Fox, a small nocturnal fox species.

Algeria is one of the world’s largest producers and exporters of dates.

The Sahara Desert covers a significant portion of Algeria’s territory.

Algeria has a long history of wine production.

Football (soccer) is immensely popular in Algeria.

Contributions

Employee Payroll Tax

Contribution Type Rate
Social Insurance 9.00%

Employer Payroll Tax

Contribution Type Rate
Social Insurance 26.00%

Payroll

Payroll Cycle

The payroll cycle in Algeria is monthly.

13th Salary

In Algeria, there is no legal obligation or statutory requirement to provide a 13th salary.

Work Hours and Week

The standard workweek consists of a maximum of 40 hours, with 8 hours per day over 5 days. The working week generally spans from Sunday to Thursday, as Friday is recognized as the official day of rest in each week.

Overtime

Any work performed beyond the regular weekly working hours in Algeria is considered overtime and should be compensated accordingly.

Leave

Paid Time Off

Employees in most regions are entitled to 30 days of paid annual leave, which accrues over a period of 12 months. However, employees working in the southern provinces have an extended entitlement of 40 days’ paid annual leave.

Public Holidays

There are 12 national holidays in 2023.

Sick Days

From the initial day of sick leave, employees are entitled to 15 days of paid sick leave at half of their regular salary. From the 16th day of sickness onwards, or if the employee is hospitalized prior to the 16th day, they are entitled to full salary during their sick leave period.

Maternity Leave

Pregnant women in Algeria have the right to receive maternity pay equivalent to 100% of their average regular salary for a maximum duration of 14 weeks. It is required for the employee to cease working no later than one week before the expected date of delivery.

Paternity Leave

Fathers are entitled to a paid paternity leave of 3 days following the birth of their child.

Parental Leave

Female employees in Algeria have the option to take part-time paid parental leave for a duration of up to 18 weeks. During this period, they are eligible to receive 50% of maternity benefits and 50% of their regular salary.

Termination

Termination Process

Termination typically occurs through a Mutual Termination Agreement, which typically includes a notice period of one month.

Notice Period

The statutory notice period for termination is 6 months, with an extended notice period of 12 months for skilled employees. Additionally, an additional five days of notice should be added for each year of service, up to a maximum of 30 days.

Severance Pay

In Algeria, the amount of severance pay is determined based on the duration of employment, following these guidelines:

  • Mandatory: One month of severance pay is required by law.
  • Collective Agreement: If there is a collective agreement in place, it may also stipulate a one-month severance pay requirement.
  • Minimum Employment Period: Severance pay becomes applicable after an employee has completed a minimum period of 12 months of employment.

Probation Period

Probation Period

The probation period in Algeria is typically 6 months.

Immigration

There are primarily three main types of visas available: tourist, business, and work visas. Algerian embassies are usually present in major capitals worldwide, facilitating visa application processes. However, consulates may be limited in number and availability.

VAT

The commonly used standard rate of VAT in Algeria is 19.00%