Guide to employment, payroll and benefits in

Algeria

Rivermate offers complete payroll, benefits and compliance services for

Algeria

01. Overview

Last updated: 

August 19, 2021

Currency
Algerian Dinar
Capital
Algiers
Ease of doing business
48.6
Language
Arabic
Population
43851044
GDP growth
1.60%

02. Grow your team in

Algeria

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Algeria

, particularly if you don't have established local relationships. You can hire employees in

Algeria

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Algeria, officially the People's Democratic Republic of Algeria, is a North African country located in the Maghreb region. It is the largest country in Africa and the Arab world, bordering Tunisia to the northeast, Libya to the east, Niger to the southeast, Mali, Mauritania, and Western Sahara to the southwest, Morocco to the west, and the Mediterranean Sea to the north. The nation has a semi-arid climate, with the majority of the population residing in the fertile north and the Sahara dominating the southern landscape. Algeria is the ninth-most populous nation in Africa, with a land area of 2,381,741 square kilometers and a population of 44 million people. Algiers, the country's capital and largest port, is situated on the Mediterranean coast in the far north. Many empires and dynasties ruled Algeria prior to 1962, including the ancient Numidians, Phoenicians, Carthaginians, Romans, Vandals, Byzantines, Umayyads, Abbasids, Rustamids, Idrisids, Aghlabids, Fatimids, Zirids, Hammadids, Almoravids, Almohads, Zayyanids, Spaniar The overwhelming majority of Algeria's population is Arab-Berber, who practice Islam and speak Arabic and Berber as official languages. In certain situations, however, French is used for administrative and educational purposes, and Algerian Arabic is the primary spoken language. Algeria is a semi-presidential republic with 58 provinces and 1,541 communes as local constituencies. Algeria is a regional power in North Africa and a global middle power. It has the highest Human Development Index of all non-island African nations, as well as one of the continent's largest economies, based primarily on energy exports. Algeria has the sixteenth-largest oil reserves and the ninth-largest natural gas reserves in the world. The national oil company, Sonatrach, is Africa's biggest, exporting vast quantities of natural gas to Europe. Algeria's military is one of the continent's oldest, with the continent's largest defense budget. It is a founding member of the Arab Maghreb Union, the African Union, the Arab League, OPEC, the United Nations, and the Arab Maghreb Union.

04. Public holidays

05. Types of leave

Paid time off

Algerian employees must be given a fully compensated yearly leave of up to 30 days.

Public holidays

Algerian workers are entitled to nine public holidays each year, the majority of which follow the Islamic lunar calendar.

Sick days

Employees can take sick leave by providing required documentation as proof of sickness. Sick pay is usually paid starting on the first day of sickness.

Maternity leave

During the prenatal and postnatal periods, pregnant women are eligible to maternity leave. Mothers on maternity leave might get in-kind benefits from social security. Reimbursement of expenditures related to pregnancy and birth are examples of in-kind benefits. Medical and pharmaceutical costs are covered to the fullest extent possible under regulated rates. For a maximum of eight days, hospitalization expenditures for both the mother and the kid are paid on the same basis.

In addition, women who are forced to stop working due to pregnancy are entitled to a daily indemnity of 100 percent of their daily wage (average of real wage) for a maximum of 14 weeks. At least one week prior to confinement, the mother must stop working.

A registered doctor or certified medical auxiliary must have assisted during the birth in order to receive these benefits and indemnities. Employees are eligible for the first six months if they have worked at least nine days or 60 hours in the previous three months, or 36 days or 240 hours in the previous 12 months.

Paternity leave

Employees who provide a written notification and explanation can take three days of paid paternity leave.

Parental leave

There are no provisions in the Algerian law regarding parental leave.

Other leave

Vacation Leave: Employees are entitled to 30 days of paid yearly leave each year. More than 30 days of vacation may be allowed under some employment contracts and collective bargaining agreements. Employees in Algeria's southern provinces are given an extra ten days of yearly leave.

06. Employment termination

Termination process

A contract of employment can be ended unilaterally by either partner, by mutual permission of both parties, or by the expiration of the agreed-upon employment length. Employment can be terminated after the conclusion of a fixed-term contract, by the employer (for good or bad reason), or by the employee. Employers must give notice of an employee's dismissal, absence, or significant misbehavior.

Notice period

Six months' notice is entitled for ordinary employees. Employers may opt to give highly trained staff up to 12 months' notice. An additional of five days is also given for each year of service, but this is capped at 30 days.

Severance pay

Employees who have worked for the company for a minimum of two years or who are dismissed for reasons other than misconduct are entitled to cash compensation upon termination.

Probation period

Employers have the right to place new employees on probation for a period of no more than six months for regular employees, and twelve months in the case of high-ranking positions.

07. Working hours

General

According to Algerian labor law, employees must work a minimum of 40 hours per week regardless of the nature of their job or the industry in which they work. Employers must distribute these hours over a five-day workweek. The 40-hour workweek may be reduced for hazardous jobs and increased for jobs requiring extended periods of inactivity.


Each week, employees must be provided with at least one full day of paid rest. Typically, this is Friday, but organizations may choose any other day that works for their business operations.

Overtime

Employees who work overtime are entitled to receive an additional payment equal to at least 50% of their regular hourly wage. Overtime work is permitted for the majority of employees but cannot exceed 20% of normal work hours. By law, no employee may be forced to work more than 8 hours of overtime per week.

08. Minimum wage

General

Algeria's minimum monthly wage is 20,000 Algerian Dinars. The country's minimum wage was last increased in June 2020. While collective bargaining agreements (CBAs) and labor unions are uncommon in the country, they can have an effect on the minimum wage if the industry or employer has a specific agreement.

09. Employee benefits

General

Algeria has a public healthcare system that is supported by social security and government payments. Companies may provide additional private healthcare insurance.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Algeria

to hire a team takes time, money, and effort. The labor law in

Algeria

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Algeria

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Algeria

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Algeria

via our Employer of Record / PEO solution.

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