Hire employees and contractors in Algeria

Remote’s guide to employing in Algeria.

  • Capital city

    Algiers

  • Currency

    Algerian dinar
    (د.ج, DZD)

  • Population size

    44,700,000
    (est. 2021)

  • Languages spoken

    Arabic, Tamazight (Berber)

  • Availability

    Remote-Owned Entity
    On hold

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

The region of Algeria has enjoyed a long, rich, and tumultuous time of it since the Romans used the lands known as Carthage, Numidia, and Mauretania. These African kingdoms weren’t too friendly with the Romans, and this proud history still holds a strong place in the hearts of the Algerian people.

In recent times, Algeria is better known as Africa’s largest nation. Today’s Algeria is a cultural melting pot where Mediterranean, Arabic, and African cultures mix with echoes of their more recent French colonial past. Outside the capital Algiers, the country is home to some of the most dramatic landscapes in the world where vast deserts blend with craggy mountains, salty chotts, and lush greenery.

The Algerian economy is Africa’s sixth-largest and heavily reliant on energy exports. Algeria holds the 16th largest oil reserves in the world. The rest of the nation’s workforce of 12.2 million people are engaged in mining, agriculture, light manufacturing, and food processing — all of which contribute to Algeria’s continuous growth as an economic powerhouse

Map of Algeria
  • Capital city

    Algiers

  • Currency

    Algerian dinar
    (د.ج, DZD)

  • Languages spoken

    Arabic, Tamazight (Berber)

  • Population size

    44,700,000 (est. 2021)

  • Ease of doing business

    Below average

  • Cost of living index

    28.31 (2021)

  • VAT - standard rate

    19%

  • GDP - real growth rate

    0.8% (2019)

Grow your team in Algeria with Remote

To employ in Algeria, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Algeria can get complicated, especially without established local relationships. 

Remote’s global employment solution makes it easy for your company to employ workers in Algeria quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Like many other countries, Algeria treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Algeria

Provisions for employee protections and workers’ rights are spelled out in the Algerian Constitution as well as a number of government statutes such as the Algerian Labour Code and Law 90-14, which allows for the establishment of worker collectives.

Employees in Algeria enjoy protections against discrimination based on age and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Algeria.

Minimum wage

The minimum wage in Algeria is fixed at 20,000 dinars ($145.80) per month.

Competitive benefits package in Algeria

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Algeria are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Taxes in Algeria

Learn how employment taxes affect your payroll and your employees’ paychecks in Algeria.

  • Employer

    • 26%: Social security

  • Employee

    • 9%: Social security

Types of leave

Paid time off

All employees are entitled to 30 calendar days of fully paid annual leave, or 40, in the case of workers employed in Algeria’s southern provinces.

Public holidays

There are 9 public holidays.

Sick leave

Employees are entitled to sick leave with half pay for the first 15 days of illness and full pay, starting on the 16th day of sickness. Benefits are issued by the National Fund of Social Security.

Maternity leave

Female employees are entitled to 14 weeks of fully paid maternity leave with full reimbursements for any expenses incurred on medical attention for eight days.

Paternity/parental leave

Fathers are entitled to three days of paid paternity leave.

Other leave

  • General leave: employees are entitled to three days’ leave in the event of any of the following: marriage, childbirth, child circumcision, the marriage of a child or grandchild, death of a first-degree relative or spouse.
  • Hajj leave: Employees are entitled to 30 days of paid Hajj leave during the course of their career to undertake pilgrimage, once in their career.

Employment termination

Termination process

Employment contracts can either be terminated by redundancy or for misconduct and in the latter case, disciplinary options must be considered before an employee is let go. Under Algerian law, terminating an employee without trying to reform them via disciplinary action would constitute unfair dismissal and make you liable to pay them severance compensation.

Notice period

Notice periods in Algeria are structured based on an employee’s skill level and tenure.

General employees are typically entitled to six months’ prior notice plus five days for each year of service, capped at 30 extra days, i.e., six months and 30 days (seven months) maximum for general staff.

Managerial staff are entitled to 12 months’ prior notice plus five days for each year of employment, capped at 30 extra days or roughly 13 months total.

Severance pay

Employees are entitled to a severance package if they’re dismissed without notice or due to liquidation or redundancy.

The basic severance pay is equal to one month’s pay and in addition, employees let go for redundancy or a business liquidation must be paid their salaries for two months, or until they find new employment.

Probation periods

Probation periods can last anywhere from six months for general staff, to 12 months for managerial positions.

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