Hire in Algeria

EOR in Algeria

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Algeria, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Algeria―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Algeria and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Algeria

The Labor Code is the fundamental law for all employment relationships in Algeria.

A formal employment contract is not required by law, but if an individual is compensated for work, an implied contract exists. A formal employment contract can be in oral or written form.

Employment contracts in Algeria

As you look to hire employees in Algeria, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The standard workweek is 40 hours, and the standard workday is eight hours. Employees are entitled to a full day of rest per week.

Extending work beyond 40 hours in a week is considered overtime. It is only permitted under exceptional circumstances, and employers may require an employee to work overtime only up to 20% over the legal maximum work time.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• The minimum wage is set by federal decree after consultation between the government, trade unions, and key employers.
• The current minimum wage is 20,000 dinars per month.
• Overtime must be paid no less than 50% above the regular pay rate.

As your employer of record in Algeria, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Algeria’s labor code does not address bonuses.

Probationary period

Probationary periods generally cannot exceed six months but can be extended once by agreement of the employee and the employer for a period not exceeding half the initial term.

Termination and severance

Employees who have not committed an act of serious misconduct are entitled to a notice period equivalent at minimum to the probationary period. After each year of service with the employer, the notice period is increased by five days up to a maximum of 30 days.

Employees are entitled to severance pay if they:

• are dismissed for reasons other than serious misconduct
• have at least two years of service with the same employer.

The amount of severance pay cannot be less than 15 days’ wages per year of service.

During the probationary period, the employment relationship may be terminated at any time by either party without compensation or notice.

Employee benefits and paid leave in Algeria

When negotiating terms of an employment contract with a candidate in Algeria, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Pregnant employees are entitled to 14 consecutive weeks of maternity leave at full pay. At a minimum, the employee must take one week of leave before birth. Benefits are paid by Algeria’s social security fund.

During pregnancy and for up to 18 months after, a working woman is entitled to one day of leave per month to obtain medical attention and to care for her child.

Vacation

Employees accumulate paid leave at a rate of two and a half days per month and can accrue up to 30 vacation days. Employees cannot waive their vacation rights.

Holidays

Employees are entitled to the following national holidays (the dates of some vary year to year according to the lunar calendar):

• New Year’s Day
• Labor Day
• Independence Day
• Aid-El-Fitr (date varies)
• Aid-El-Adha (date varies)
• Awwal Muharram (date varies)
• Ashura (date varies)
• Feast of the Revolution
• El Mawlid en-Nabawi (date varies)

Sick leave

Employers must pay 50% of their salary for the first 15 days of sick leave. The rate rises to 100% after the 16th day or in the case of hospitalization.

Health coverage

The normal retirement age in Algeria is 60 for men and 55 for women, and claimants must have worked 15 years to qualify for a full pension. Benefits are based on the years worked and the employee’s age.

Additional benefits

In addition to healthcare benefits, employees in Algeria are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Algeria, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: February 13, 2024

Employee onboarding with an employer of record in Algeria

We write and validate all local employment contracts, streamlining the onboarding process for you and your Algerian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Algeria, we will:

• Schedule a welcome call to discuss HR and employment information for Algeria, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Algeria employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Algeria. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.