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How To Hire New Remote Employees | Algeria

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Algeria

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Algeria

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Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Algeria

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
Algeria
currency
Algerian dinar (DZD, دج)
language spoken
Arabic
payroll frequency
Monthly
employer taxes
26%
vat - standard rate
19%
cost of living index
DZD 50,591
gdp - real growth rate
-5.5% (2020)
termination process
Varies
employee protections
Moderate
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Overview

In 2019, a majority of Algeria's labor force was employed in the service industry. Since 2010, the services industry has employed over 60% of all workers in the country. Employment rates by industry are relatively consistent, with the industrial sector attracting roughly 30% of the workforce. In 2018, the number of individuals working in agriculture fell to less than 10% of the total working population in Algeria.

Algeria's economy is distinguished by the dominance of the secondary and tertiary industries. The industrial sector is reliant on oil and gas resources. Algeria is an Organization of the Petroleum Exporting Countries (OPEC) member, and its economy is primarily reliant on petroleum production and trading. Oil rents generated more than 15% of GDP in 2018. However, the oil and gas business does not require a huge labor force, hence the majority of the working population is employed in the service sector. Furthermore, the country's service industry has expanded in recent years, leading to diversification of the economy.

Public Holidays

1 January- New Year's Day

12 January- Yennayer

1 May- Labour Day

4 May- Eid al-Fitr

5 July- Independence Day of Algeria

9–11 July- Eid al-Adha

29–30 July- Islamic New Year

7–8 August- Ashura

7–8 October- Prophet's Birthday

1 November- Anniversary of the Revolution

Minimum wage

Algeria's minimum monthly wage is DZD 18,000.

Payroll cycle

In line with the Algerian Legislation in force, the employer is required to provide the employee with their payslip at the end of every month. The payslip will include, name of the corporate, name and address of the employer, number to which social security fund is deposited, the period of remuneration, the payment date and the salary paid.

Taxation

According to the quantity of income, a progressive scale ranges from 0% to 35%. It does not apply to incomes below 120,000 DZD (US$1053); above this barrier and up to 360,000 DZD (US$3160), it is 20%; above this threshold and up to 1,440,000 DZD (US$12,643), it is 30%; and above 1,440,000 DZD (US$12,643), it is 35%. Then there are withholding tax rates at the source that are categorical. This one varies depending on which income bracket the money falls into. There are numerous classes, each with its own scale within it, therefore the tax varies both between and within them. We have the following revenue categories: Salary, wages, and other remuneration (classical monthly remuneration of employees is included in progressive taxation from 1% to 20%); investment income (tax from 1% to 20%); salary, wages, and other remuneration (tax from 1% to 20%).

Leaves

Annual Leave 

The Algerian Labor Law guarantees employees a minimum of 30 calendar days of paid annual leave. Employees working in the Southern Wilayas (provinces) are entitled to an additional 10 calendar days of paid yearly leave. Once employed, an employee may take up to 30 calendar days of paid leave to undertake Hajj.

Maternity Leave 

Female employees are entitled to 14 weeks of 100% paid maternity leave, as well as full medical benefits and hospitalization charges for up to eight days. Employees must begin taking maternity leave at least one week before they are scheduled to be admitted to the hospital.

Paternity Leave 

In Algeria, paternity leave covers three days of emergency leave paid in full by the employer.

Sick Leave 

Workers have the right to 15 days of paid sick leave at 50% pay. If the employee's illness continues after the 15 days, their sick leave payment increases to  100%. 

Termination process

Termination of Contract 

Algerian law protects employees from wrongful employment termination. Work contracts can be ended in the following ways: voluntarily by either party, by mutual consent of both parties, or due to the expiration of the agreed-upon length of employment.

Notice Period 

Employers must provide notice of dismissal in the event of an employee's absence or serious misconduct. The notice period is six months for low-skilled personnel and up to 12 months for high-skilled staff.

Severance

In Algeria, unless there is a redundancy, severance is usually needed after two years of service. However, other contributions may be necessary in some cases. 

Probation 

An employer has the right to put a new employee on probation for a term of no more than six months, or 12 months for senior positions.

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