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Hire and Pay Remote Employees and Independent Contractors in Algeria

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Workpay

Global Payment and Compliance

Hire and Pay Remote Employees and Independent Contractors in Algeria

While most people know Algeria because of its wild Sahara desert and lovely coastline, it is also a significant player in Africa's petroleum and natural gas exports

Workpay
June 24, 2022
4
min read
By
Workpay
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June 24, 2022
8 min read
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Hire and Pay Remote Employees and Independent Contractors in Algeria

While most people know Algeria because of its wild Sahara desert and lovely coastline, it is also a significant player in Africa's petroleum and natural gas exports. Trading Economics predicts Algeria's GDP to reach 170 USD billion by 2023.
Algeria has various top skills in different industries, such as automotive, construction, agriculture, mobile communications, marine transportation, electricity, chemicals, fertilizer, and services. 

How to Hire Remote Employees and Independent Contractors in Algeria 

Employers need to understand employment laws in Algeria before hiring remote workers. Some of the critical things include understanding hours of work, the minimum salary for employees, and the process of employment and termination. Below is a simple process on how to hire remote workers in Algeria. 

  1. Differentiate between remote employees and independent contractors

Before hiring, identify the kind of remote worker you want to onboard. It would help if you had a proper classification of workers, i.e., you don't want an independent contractor to be treated like a typical employee. Additionally, worker misclassification can harm your business.

Remote employees work from a remote location other than a central office operated by the employer. Employers of remote employees prepare and remit taxes on their behalf. Most importantly, remote employees are entitled to mandatory government benefits.

On the other hand, independent contractors are freelancers responsible for services outlined in the scope of a contract. Remote contractors have more control over their financial obligations because they prepare taxes and deduct allowable expenses from their full salaries.

  1. Set up a subsidiary 

International employers can access Algeria's labour force by setting up a local entity for their companies in Algeria. The process entails registering with the relevant government agencies, opening an Algerian bank account, and publishing your company's constitution, among other requirements. This process is also time-consuming and expensive. 
Setting up a subsidiary is essential while onboarding remote employees. You can efficiently work with independent contractors in Algeria without a local entity. 

  1. Direct engagement 

Another option for hiring remote workers is to engage them directly. Consequently, this process leads to direct hiring without involving any third parties. However, this is best suited for hiring independent contractors rather than remote employees because hiring employees involves numerous compliance issues. During a direct engagement, some potential remote workers or you as an employer might suggest introducing a third party.

  1. Use an EOR service provider.

As outlined above, hiring remote talents can be a complex process, especially where you have to meet all compliance requirements in Algeria. Nonetheless, it doesn't have to be that challenging when you can use Employer of Record (EOR) services.

An EOR provider, such as Workpay, is a third party that helps hire and pay remote employees or independent contractors on your behalf and ensures you remain 100% compliant even when working with remote talents from foreign countries. This option saves time and money by building a remote team compared to establishing a local entity in Algeria.
An EOR will handle other functions, including generating a locally compliant employment contract and running background checks. 

How to Pay Remote Employees and Independent Contractors in Algeria 

Like other countries, Algeria has its employment and payroll standards. Therefore, employers must understand and adjust to Algeria's local payroll and tax laws as they hire remote employees and independent workers.Below are some effective ways to transfer payments to remote employees and independent contractors in Algeria. 

  1. Bank transfers 

If your remote team has Algerian bank accounts, you can transfer their payments directly to their respective accounts. All you need is their bank details and SWIFT codes to complete the transaction. 
However, you must consider foreign exchange rates and transfer fees if you settle for these options. 

  1. Online money transfer services 

Another great option for paying remote teams in Algeria is online money transfer services. Among the top providers that support international money transfers in Algeria from bank accounts and e-wallets include: 

  • Remitly (Fastest) 
  • XE
  • Xoom
  • Revolut
  • Paysend (Cheapest way to send large transfers to Algeria) 
  • Payoneer (the easiest way to send money to Algeria, especially to recipients with debit cards)

All of the above platforms are easy to use. 

  1. Cash pick-up transfers 

If your remote team member in Algeria doesn't have a bank account or doesn't find the above two methods convenient to receive payments, you may consider cash-pick-up transfers. Among the best service providers in Algeria and internationally include: 

  • Western Union (best cash pick-up network) 
  • MoneyGram (the cheapest cash pick-up network)
  • Ria Money Transfer 
  • WorldRemit 

Note: Some cash-pick-up providers, such as Western Union and MoneyGram, offer online services whereby you can send money online 24/7. 

  1. Use an EOR provider

Using Employer of Record (EOR) services is another excellent option if you don't want to handle the payroll process yourself. An EOR processes and distributes the payroll, files employment taxes, and transfers payments to remote teams in Algeria on your behalf. 

How Can Workpay Help You Build or Expand a Remote Team in Algeria?

Workpay makes hiring remote workers and independent contractors easier by assisting you in hiring legally. It removes the compliance risk for you, allowing you to focus on more productive activities in your business. Most importantly, you do not need to relocate or establish a new entity in Algeria to hire employees.

  1. Workpay accepts payments in multiple currencies. Remote workers in Algeria will be paid in Algerian Dinars (DZD).
  2. Workpay streamlines the payment cycles of your remote team. It allows you to make timely payments and remit taxes on time.
Workpay
Workpay Africa

Workpay is a HR and Payroll software company that offers time & attendance, payroll, human resource, leave, expenses and remote teams solutions to businesses across Africa.

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