Algeria

Employer of Record & Payroll in Algeria

Africa Deployments Algeria offers comprehensive Employer of Record (EOR) and payroll services, making it easier for businesses to manage both local and expatriate staff in Algeria. Whether you require full-time employees or fixed-term contracts, we provide tailored solutions to meet your specific needs. We handle all the legal requirements, including work permits, local contracts, and tax compliance, ensuring that your operations in Algeria remain fully compliant.

As your Employer of Record in Algeria, we issue local employment contracts, provide HR guidance, and manage tax and PAYE remittances to the Algerian Revenue Services. We ensure that salaries are paid on time every month and employees receive their payslips.

Why Choose Us for EOR Services in Algeria?

Compliance with Local Laws: We ensure that your business follows all local labor regulations, including work permits, contracts, and tax remittances.
Expert Guidance: We advise on the best HR practices and assist with employee onboarding in Algeria.
Timely Payroll: Your employees will receive their salaries punctually, along with official payslips.

Algeria: A Gateway to the African Market

Algeria, officially known as the Republic of Algeria, is located in North Africa along the Mediterranean Sea. As the largest country in Africa with a population of over 44 million people, Algeria boasts stunning landscapes, from snow-capped mountains to a beautiful coastline. It is home to impressive Roman ruins like Timgad and Djemila, and its workforce is skilled, with many working in the service and tech sectors.

Key Facts:

Population: 44.18 million (2021)
Currency: Algerian Dinar
Capital: Algiers
Official Language: Arabic (with Berber as a second official language)
GDP: 163 billion USD (2021)
Major Industry: Oil and Gas

Types of Employment Contracts in Algeria

We offer the following contract types through our Employer of Record (EOR) service in Algeria:

Fixed Term: Contracts for a specific period.
Indefinite Term: Open-ended contracts with no specified end date.

All contracts must be in writing, in the official local language, and include salary, benefits, and termination clauses.

Full-Time Employment Contracts:

These employees typically work for one employer and may qualify for additional perks and benefits. The probation period for full-time employees is typically up to 6 months (12 months for senior roles).

Taxation in Algeria

In Algeria, individuals who live and work in the country for more than 183 days annually are subject to local taxes. These taxes apply to wages, salaries, bonuses, and any form of remuneration. The tax year runs from May 1 to April 30.

Exempt Income: Alimony payments, mortgage interest expenses, and taxes paid are deductible, but childcare, education, healthcare, and life insurance expenses are not.

Standard Working Hours & Overtime

Standard working hours in Algeria are 8 hours per day and 40 hours per week. Any additional hours worked will be compensated as overtime, at a rate of at least 150% of the normal hourly wage.

Employee Contributions & Employer Obligations

Employee Contributions:

Social Security Fund (CNaPS): 9%
National Health Insurance Fund (CNAM): 1%
National Pension Fund (CNAPS): 1%

Employer Contributions:

Social Security (CNaPS): 26%
National Health Insurance (CNAM): 3%
National Employment and Vocational Training Fund (FNEF): 1%

Maternity and Paternity Leave

Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave, starting at least 6 weeks before delivery. For multiple births, an additional two weeks of leave per child is provided.
Paternity Leave: Male employees are entitled to 3 days of paid paternity leave to be taken within 15 days after the birth.

Types of Leave in Algeria

Annual Leave: 30 days per year (accrued at 2.5 days per month).
Sick Leave: Employees receive paid sick leave for the first 15 days, with extended compensation if hospitalized.

Bonuses & Severance Payments

Bonuses: Bonuses are not mandatory in Algeria.
Gratuity: Mandatory for employees who complete at least one year of service. The gratuity is equivalent to one month’s salary per year of service, with a maximum of 24 months’ salary.
Severance: Due to redundancy or closure, severance is equivalent to one month’s salary for each year of service, up to a maximum of 24 months.

Fringe Benefits

Employers can provide fringe benefits in Algeria; however, some may be subject to employee PAYE tax.

Corporate Tax & VAT

Corporate Tax Rate: 26% (general rate)
VAT / Sales Tax Rate: 19% on most goods and services

Public Holidays in Algeria

January 1 – New Year’s Day
January 2 – Yennayer
February 22 – Day of Fraternity and Cohesion
April 22 – Eid-Ul-Fitr
May 01 – Labour Day
June 29 – Eid Al Adha
July 05 – Independence Day
July 19 – Awal Muharram
July 28 – Ashura
September 27 – Mawlid
November 01 – Anniversary of the Revolution

Industries Supported in Algeria

We offer EOR and payroll services for the following industries in Algeria:

Oil & Gas
Engineering & Construction
FMCG & Manufacturing
Agriculture
NGOs & Non-profits
Private Equity, Finance, Insurance & Banking

Double Tax Treaties

Algeria has double tax treaties with numerous countries, including:

For more information or to start deploying your workforce in Algeria, contact one of our expert consultants today. Let us handle the complexities of employment compliance so you can focus on growing your business.