Algeria Employer of Record & Payroll
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 Employer of Record.
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.
Algeria is Africa’s largest country and is home to ±44 million people. The north is known for its snow-flecked mountains and stunning coastline on the Mediterranean.
Some of the world’s most magnificent Roman sites including Timgad and Djemila can be found here. Algerians are known for their hospitality and the majority of the working population are found in the service sector, whilst also being tech-savvy.
What is the main language spoken in Algeria:
The official languages in Algeria are Arabic and Berber, with Arabic being spoken by ± 80% of the population, and Berber being regarded as Algeria’s native tongue.
In 2016, Berber was made Algeria’s 2nd official language.
Most Algerians are also verse in one of several dialects of vernacular Arabic, which are similar to dialects spoken in adjacent areas of Morocco and Tunisia.
French is largely understood in Algeria but has no official language status.
What type of employment contracts can you offer in Algeria:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 6 months [maximum] – or sometimes for senior positions probationary period is 12 months [maximum]
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.
Standard working hours: Number Overtime to be paid in Algeria?
In Algeria, if you work extra hours, you should not work more than 8 hours per week or 12 hours per day. If your employer asks you to work more, they have to pay you extra money called overtime pay. This pay should be at least 150% of your normal hourly rate.
Mandatory contributions in Algeria?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
9% |
18,000 DZD per month |
|
National Health Insurance Fund (CNAM) |
1% |
None |
|
National Pension Fund (CNAPS) |
1% |
18,000 DZD per month |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
26% |
30,000 DZD per month |
|
National Health Insurance (CNAM) |
3% |
None |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
30,000 DZD per month |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
26% of gross salary |
9% of gross salary |
|
National Health Insurance (CNAM) |
3% of gross salary |
1.5% of gross salary |
|
National Employment and Vocational Training Fund (FNEF) |
1% of gross salary |
1% of gross salary
|
What is the Maternity and Paternity policy within Algeria:
- Female employees: entitled to 14 weeks of paid maternity leave.
- Maternity leave starts at least 6 weeks before the expected date of delivery.
- For multiple births, additional two weeks of leave per child beyond the first.
- During maternity leave, the employer continues paying the employee’s salary.
- The salary during maternity leave is covered by Social Security.
- Male employees: entitled to 3 days of paid paternity leave.
- Paternity leave to be taken within 15 days following the birth of their child.
What type of leave is allowed in Algeria:
Annual leave
- 30 days, full pay accumulated over a period of 12 months on a 2.5 day basis.
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.
Do I need to pay a mandatory bonus annually OR is it discretionary in Algeria:
In Algeria bonuses are not mandatory.
What Gratuity / Severance payments do you need to provide for Algeria:
- Mandatory for employees who complete at least one year of service with their employer.
- Amount is equivalent to one month’s salary for each year of service, with a maximum of 24 months’ salary.
- Employers are required to pay this amount to employees who resign or are terminated without serious misconduct.
- Mandatory for employees who are terminated due to redundancy or closure of the enterprise.
- Amount is equivalent to one month’s salary for each year of service, with a maximum of 24 months’ salary.
- Employers are required to pay this amount to employees who are terminated for these reasons.
CAN YOU GIVE FRINGE BENEFITS IN AlGERIA:
Yes, you can but keep in mind that certain Fringe Benefits will be subject to employee PAYE tax.
Mandatory Probation period of Algeria:
- Permanent employment contract: The probation period may not exceed 6 months.
- Fixed-term employment contract: The probation period may not exceed one-third of the duration of the contract, with a maximum of 3 months.
- Part-time employment contract: The probation period may not exceed one-third of the duration of the contract, with a maximum of 3 months.
- Apprenticeship contract: The probation period may not exceed one-third of the duration of the contract, with a maximum of 3 months.
What are the Corporate and VAT / Sales tax rates in Algeria:
Corporate Tax Rates: 26% [in general]
VAT / Sales Tax Rates: 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
What Industries we support in Algeria:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Algeria:
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
