Employment Law

Employment Contracts in Algeria

While it is technically possible to enter into a verbal contract in Algeria, we strongly recommend providing a formal written employment contract when hiring employees. The local Arabic language should be used, and any references to currency should be in Algerian dinars. The contract should include all relevant details of the employment agreement, such as salary, holiday allowance, etc.

Fixed Term

Indefinite

Working Hours in Algeria

Normal working hours in Algeria are 40 hours from Sunday to Thursday, with rest on Friday and Saturday. If an employee works at least 20% more than their normal working hours, they are entitled to 150% of their normal salary.

Holiday Policy

Algeria Vacation

Employees in Algeria can generally accumulate 2.5 days of paid leave per month of work, with a maximum of 30 days per year.

Algeria Sick Leave

Employers in Algeria are generally required to pay employees who are absent from work starting from the first day of leave. The salary is 50% of the normal salary for up to 15 days and 100% in the case of long-term illness or hospitalization.

Parental Leave in Algeria

Algerian female employees are entitled to 14 weeks of paid maternity leave. Male employees are entitled to three days of paternity leave.

Dismissal and Severance in Algeria

Employees in Algeria are generally entitled to give their employer five days' notice of termination per year, subject to a maximum of 30 days.

Workers on probation are not entitled to this notice period, which may last from 6 to 12 months, depending on the position.

Employees who have been with the employer for more than two years usually also receive severance pay equal to 15 days' salary per year, capped at three months.

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's Algeria PEOs can reduce risk for foreign companies and provide guidance during the process.

Taxation in Algeria

Employees in Algeria are taxed progressively on their income, with rates ranging from 0% to 35% depending on the income level.

Algeria's corporate tax rates vary for different types of companies, but for companies engaged in mixed activities, the maximum rate is 26% of taxable profits.

Health Insurance in Algeria

Public health care in Algeria is funded through taxes, but many employers do choose to offer private health insurance to their employees as part of their benefits package.

Salary and Benefits

Algeria’s Compensation Law

In mid-2020, the minimum wage in Algeria was raised to 20,000 dinars per month.

Welfare Administration in Algeria

Employees in Algeria often expect benefits packages as part of their employment agreement, so you may want to set up a benefits administration system when recruiting in the country. But setting up and administering a benefits system in Algeria can be complex, especially if you're unfamiliar with the country's unique regulations and procedures.

Horizon can help you significantly simplify this step of your Algeria expansion by providing benefits administration outsourcing. Our team can advise you and handle the set-up of your benefits plan, allowing you to focus on growing your organization with our Algeria PEO.