Employer of Record in Algeria

General information

• Currency: Algerian Dinar (DZD)
• Employer Taxes: 26%
• Payroll Frequency: Monthly
• Employee Costs: 9%
• Capital: Algiers
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The minimum wage in Algeria is 20,000 DZD per month

Payroll

Payroll Cycle: The payroll cycle in Algeria is monthly.

13th Salary: There is no statutory requirement to provide a 13th salary.

Working Hours

General: In Algeria, the typical workweek spans up to 40 hours (8 hours per day, 5 days per week), starting on Sunday and concluding on Thursday, with Friday designated as the weekly day of rest by law.

Overtime: Any work exceeding the standard weekly hours must be compensated as overtime, governed by employment contracts or collective agreements, and can only be mandated by the employer under exceptional circumstances. Overtime should not surpass 8 hours per week or 12 hours per day. Employees required to work additional hours are entitled to overtime compensation at a rate of at least 150% of their regular hourly wage.

Leave

Annual Leave (Vacation): According to Algerian Labor Law, employees are granted 30 days of paid annual leave accrued over a 12-month period, except for those working in the southern provinces, who are entitled to 40 days of paid annual leave.

Public Holidays: There are 12 national holidays in 2022.

Sick Days

Employees are entitled to 15 days of paid sick leave at half salary from their first day of illness. From the 16th day of sickness or if the employee is hospitalized earlier, full salary is provided. Sick pay and medical expense reimbursements are covered by the National Fund of Social Security, funded through mandatory social contributions from both the employer and the employee.

Maternity Leave

Pregnant women are entitled to maternity pay equivalent to 100% of their average regular salary (based on their position’s average) for up to 14 weeks. The employee must cease working no later than one week before childbirth. To qualify for these payments, the birth must be attended by a registered doctor or qualified professional. For employees within their first six months of employment, employees are entitled if they have worked at least 9 days or 60 hours during the three preceding months or 36 days or 240 hours during the 12 preceding months.

Paternity Leave

Fathers are entitled to 3 days paid paternity (emergency) leave for the birth of a child.

Parental Leave

Female employees have the right to take part-time paid parental leave for a duration of up to 18 weeks. During this period, they will receive 50% of maternity benefits along with 50% of their regular salary.

Other Leave

An employee is eligible for up to 30 calendar days of paid leave to undertake Hajj once during their employment. Additionally, they are entitled to 3 days of paid leave for their own marriage or the marriage of a dependent, as well as 3 days of paid leave for bereavement.

Using the Employer of Record (EOR) service with Brain Source International in Algeria offers several benefits:

1. Compliance: Ensures compliance with local employment laws, regulations, and tax requirements in Algeria.
2. Efficiency: Streamlines payroll processing, HR administration, and benefits management.
3. Flexibility: Allows for quick deployment of staff without the need for establishing a legal entity.
4. Risk Management: Reduces risks associated with employment liabilities and legal issues.
5. Focus on Core Business: Enables companies to focus on their core business activities while outsourcing administrative tasks to experts.
6. Local Expertise: Access to local expertise and knowledge of the Algerian market and labor laws.

Using Brain Source International as an EOR in Algeria can provide peace of mind and operational efficiency for companies looking to expand or manage their workforce in the country.

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