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How to hire and pay employees in Algeria
Slasify
Jun 21, 2025
Before Hiring in Algeria
Discover the global hiring and employment landscape in Algeria — Strategically located at the crossroads of Africa and the Mediterranean, Algeria is diversifying its hydrocarbon-rich economy into agriculture, manufacturing, and renewables, backed by a young, tech-savvy workforce embracing entrepreneurship.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Algeria market with Slasify's global premium HR platform.
At a Glance
| Capital | Algiers |
| Currency | Algerian Dinar (DZD) |
| Payroll Cycle | Monthly |
| Minimum Wage | DZD 20,000 per month |
| Annual Leave | 30 days |
| Personal Income Tax | Up to 35% |
Personal Income Tax
| Taxable Income (DZD) | Progressive Tax Rate (%) |
|---|---|
| Up to 240,000 | - |
| 240,001–480,000 | 23 |
| 480,001–960,000 | 27 |
| 960,001–1,920,000 | 30 |
| 1,920,001–3,840,000 | 33 |
| Over 3,840,000 | 35 |
Local Tax
The are no local taxes on employment income in Algeria.
Statutory Contributions
The information provided under this section regarding statutory social contributions from both the employer and employee are broad estimates.
Employer Contributions
| Contribution Rate | |
|---|---|
| Social Insurance | 12.50% |
| Work Accidents and Occupational Illnesses | 1.25% |
| Retirement | 10% |
| Early Retirement | 0.25% |
| Unemployment insurance | 1% |
Employee Contributions
| Contribution Rate | |
|---|---|
| Social Insurance | 1.50% |
| Retirement | 6.75% |
| Early Retirement | 0.25% |
| Unemployment insurance | 0.50% |
Payment of Wages
Employers are required to pay their employees regularly and in arrears the remuneration due to them, typically on a monthly basis.
Minimum Wage
The national minimum wage in Algeria is set at DZD 20,000 per month.
Statutory Bonus
There are no statutory requirements to provide bonus to employees in Algeria.
Termination
An employment relationship shall cease as a result of the nullity or legal abrogation of the employment contract, redundancy or disciplinary dismissal, resignation, or the employee's incapacity, retirement or death.
Disciplinary dismissal must be carried out in accordance with the procedures set out in the internal regulations, with the employer being obligated to issue a written notice of their dismissal decision and conduct an impartial hearing with the concerned employee.
Individual dismissal occurring in violation of the procedures provided for in the internal regulations and the provisions of the law is presumed to be unfair.
Notice Period
The dismissal of an employee who has not committed serious misconduct entitles them to a notice period, the minimum duration of which shall be fixed in the relevant collective agreement or convention. Employers can choose to pay their employees in lieu of their entitled notice period an amount equal to the total remuneration they would have received during said period.
During the notice period, the employee is entitled to 2 hours of leave per day, cumulative and paid, for job-seeking purposes.
Severance Pay
In the event of a redundancy termination due to company downsizing, the employee affected shall be entitled to receive a redundancy allowance equivalent to 3 months' salary. This allowance is to be calculated based on the employee's average gross monthly salary in the 12 months preceding their termination.
However, employees earmarked to be terminated due to redundancy and who are compensated by means of a job or admission to retirement or early retirement are not entitled to any compensation other than that due to them for paid leave.
Probationary Period
A newly recruited employee may be subject to a probationary period, the duration of which shall not exceed 6 months. This period can be extended to 12 months for highly qualified positions.
During the probationary period, the employee has the same rights and obligations as those occupying similar work positions, and this period shall be taken into account in the calculation of their seniority within the employing organization when they are confirmed at the end of their probation.
During this period, the employment relationship may be terminated at any time by either party without compensation or notice.
Work Time Rules
Standard Working Hours
The legal working time is set at 40 hours per week under normal working conditions, and the legal duration of work is spread over a minimum of 5 working days.
Break Period
Employees are generally entitled to an hour of rest in each working day. Those working under a continuous session regime shall still be entitled to this break, provided that half an hour of their break are considered as working time.
Overtime
Employers may require their employee to work overtime beyond the legal working time, provided that these hours do not exceed 20% of said legal working time. In any case, daily working hours, including overtime, shall not exceed 12 hours.
Overtime worked gives rise to the payment of an overtime premium, which shall in no case be less than 50% of the employee's normal hourly wage.
Weekly Rest Days
Employees are generally entitled to a full day of rest per week, which usually falls on a Friday for employees working under ordinary working conditions.
Those required to work on a legal rest day shall be entitled to compensatory rest of equal duration and benefits from the right to increase overtime.
Holiday and Leave Entitlements
Public Holidays
Employees in Algeria are entitled to take public holidays off as paid non-working days. There are 11 days of public holidays in Algeria for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Amazigh New Year | January 12 |
| Eid al-Fitr | March 30–31 |
| Labor Day | May 1 |
| Eid al-Adha | June 6–7 |
| Islamic New Year | June 26 |
| Independence Day, Ashura | July 5 |
| Prophet Muhammad's Birthday | September 4 |
| Revolution Day | November 1 |
In addition to the above, Christian and Jewish employees may be entitled to additional holidays on the following days:
| Additional holidays | |
|---|---|
| Christian employees | Easter Monday, Ascension, Assumption and Christmas |
| Jewish employees | Jewish New Year, Yom Kippur and Pesach |
Those who are neither Christian nor Jewish, but find themselves unable to work by application of the above holidays shall be paid even if they are paid by the hour or by the day.
In any case, employees required to work on a public holiday shall be entitled to compensatory rest of equal duration.
Annual Leave
Employees shall be entitled to a paid annual leave that is calculated at a rate of 2.5 days per month worked, with the overall duration being subject to a maximum of 30 calendar days per year. Those working in the southern wilayas shall be entitled to additional leave that is not less than 10 days per year of work.
The right to annual leave shall be based on work carried out during an annual reference period which extends from July 1 of the year preceding the leave to June 30 of the year of leave. For newly recruited employees, the starting point of the reference period shall be the date of recruitment.
Note: Employees are authorized to interrupt their annual leave following an illness to benefit from sick leave and related rights.
Sick Leave
An employment relationship will be suspended by the effect of the employee taking sick leave or similar leaves as provided for by the legislation and regulations relating to social security.
Employees who meet the relevant criteria shall be entitled to receive sick leave allowance from the National Social Insurance Fund, as follows:
| Sick leave | Sick leave allowance |
|---|---|
| Day 1–15 | 50% |
| Day 16 onwards | 100% |
Note: The sick leave allowance in the event of hospitalization or long-term illness shall be 100% of the reference salary from the first day of leave.
Maternity Leave
Employees are entitled to 14 weeks of maternity leave. The payment of maternity leave allowances shall be covered by Social Security for employees who meet the relevant criteria.
Paternity Leave
Employees are entitled to 3 days of paid leave for the birth of their child.
Parental Leave
Employees may, subject to prior notification and justification to the employer, be entitled to 3 days of leave without loss of remuneration in the event of their child's circumcision and their child's marriage.
Other Leave
Employees may, subject to prior notification and justification to the employer, be entitled to the following leaves without loss of remuneration:
| Leave | Duration | Note |
|---|---|---|
| Bereavement Leave | 3 days | This can be taken for the death of the employee's ascendant, descendant, first-degree collateral and spouse |
| Examination Leave | - | This can be taken to take academic or professional exams |
| Marriage Leave | 3 days | This can be taken in the event that the employee gets married |
| Pilgrimage Leave | 30 days | This leave can be taken to carry out pilgrimage to the holy places once throughout the employee's professional career |
| Training Leave | - | This can be taken to follow professional or union training courses authorized by the employer |
| Union or Staff Representation Leave | - | This can be taken to carry out tasks related to union representation or staff representation |
In any case, it is important to remember that the suspension of an employment relationship occurs legally by the effect of the following:
| Cases justifying the suspension of an employment relationship | When there is a mutual agreement between the concerning parties to such effect |
|---|---|
| During sick leave or similar leaves as provided for by the legislation and regulations relating to social security | |
| For the fulfillment of national service obligations and periods of maintenance or maintenance within the framework of the reserve | |
| An exercise of an elective public office | |
| The deprivation of liberty of the worker until a definitive conviction has been pronounced | |
| A disciplinary decision suspending the exercise of function | |
| The exercise of the right to strike | |
| Any period of unpaid leave |
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