Algeria Employer of Record & Payroll

Algeria Employer of record

Africa Deployments Algeria offers our clients Employer of Record (EOR) services covering all of the regions within.  We offer full-time employment or fixed terms contracts based on your requirements in Algeria for locals or expatriates.  ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors.  We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Algeria.

ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law.  We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. Algeria, officially the Republic of Algeria, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.

What income is Taxable in Algeria:

Any individual who works and lives in Algeria for more the 183 days a year will be subject to local taxes in Algeria.  They maintain a permanent home in Algeria.  The tax years from effectively from 01 May to 30 April the following year. 

Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee.  All income will be taxed in accordance with the law and the final payroll issued monthly.

WHAT INCOME IS EXEMPT FROM TAXES IN Algeria:

  • Alimony payments are deductible.
  • Mortgage interest expenses are deductible.
  • Taxes paid are deductible
  • Charitable contributions are not deductible.
  • Childcare expenses are not deductible.
  • Education expenses are not deductible.
  • Healthcare expenses are not deductible.
  • Life insurance premiums are not deductible.

WHAT TYPE OF LEAVE IS ALLOWED:

  • Annual leave – 30 days, full pay accumulated over a period of 12 months on a 2.5 day   basis.

  • Public Holiday-12 Public holiday per annum as per Algeria Leave Law. Additionally, Christian employees are entitled to 4 extra holidays (Easter day, Ascension, Assumption and Christmas Day) and Jewish employees are entitled to 3 extra holidays (Roch Achana, Youm Kippour and Pisah).
  • Sick Leave- Part of the employee’s salary is paid for the first 15 days of sick leave. This is increased after day 16 or if the employee is hospitalised.
  • Maternity leave – leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.

  • Paternity leave – Immediately after delivery or miscarriage entitled to 3 working days leave from work.

CAN YOU GIVE FRINGE BENEFITS:

Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. 

WHAT ARE THE EMPLOYER & EMPLOYEE CONTRIBUTIONS:

  • Social Security Contribution (Employer 26% & Employee 9%)
    The social security contributions cover retirement, illness, unemployment, and work accidents.

  • Pensions expenses is deductible by the employer.

IS THERE GRATUITY PAYMENTS FOR TERMINATION in Algeria:

An Employer and Employee can agree on severance pay.  However it should be noted that the Bill seeks to legislate a fixed severance pay as of 1 month’s gross salary for each year of service.  Dismissal will not be entitled to severance.  Severance must be agreed by both parties and paid within 21 days of acceptance.

WHAT DOUBLE TAX TREATIES ARE IN PLACE in benin:

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Algeria.