Payroll and HR
Administration in Algeria
Algeria– Payroll and HR administration services
Global Expansion Plus provides payroll and HR administration services in Algeria. Use our solutions to take care of your people in Algeria. We make sure that your people are being taken care of and your entity is safe from violating local legislation. The Labor Code governs the Algeria labor relationship.
Hiring and onboarding employees in Algeria
If you are hiring a foreign employee, you need to consider obtaining a work permit first. Please see below. Once you agreed on the job offer with your future employee, you need to start the onboarding process.
Algeria does not have a regulated onboarding process and is usually ruled by companies’ internal policies and procedures. GE+ provides the following steps in employee onboarding:
The main onboarding document in Algeria is an employment contract if it can be in both written and less desired oral form. Employment contract stipulates the right and obligations of the parties and cannot breach local labor legislation.
GE+ provides you with a sample Algerian employment contract. The contact defines the term of the contract and, if not explicitly mentioned, is deemed infinite.
According to Algerian legislation, the probation period shall not be more than six months. For white-collar, highly qualified, expensive personnel, the probation period can be prolonged up to 12months.
Both parties can do employee termination during the probation period without prior notice period and any compensation.
Health and Safety
The employers shall ensure safety and comfortable work conditions for workers. People employed by the national security forces – the police, the army, and companies that part of the law enforcement must comply with a strict background check.
Work permits and Visas in Algeria
Foreign employees entering the Algerian workforce need to obtain a work visa, a temporary work permit, and a work permit. Algeria tries to intensify some industries like trade and investment, so workers in these fields are more desirable than in others. Algeria is very interested in professionals like doctors and teachers.
Algeria has the following type of visa:
Let’s review the major types of visas:
Business Visa (for Short Stay)
This type of visa is given to the visitors coming to Algeria for representative purposes for a short stay. The holders of a Business Visa (Short Stay) are not allowed to work in Algeria. To obtain this visa applicant need to submit the following documents:
Temporary Work Visa
The visa is given for the period not exceeding 90 days and based on the contact between foreign individuals and Algerian companies to perform a temporary job. Once the contract is finalized, the employer is responsible for the repatriation of the foreign worker.
This type of visa is granted to the holders of the Work Authorization issued by the Algerian employment officials and the certificate provided by the accepting company. Under this certificate, the company that employs the foreign employee take full financial responsibility for the repatriation of employees after the termination of the contract.
To apply for your work permit in Algeria, you’ll need to collect the following documents:
Professionals and skilled workers are highly desirable, and you’re sure to be welcomed if you can secure Work there, but filing the paperwork can be tricky as there are many parts needed.
Procedure for obtaining approval
To work in Algeria, an expatriate must hold a work permit, and there are two types of work permit:
- the regular work permit issued to employees of foreign nationalities; and
- Annex 10 work permits (issued only for employees of French and Tunisian nationality).
To hold a work permit in Algeria, you must first receive a temporary work authorization (APT), which requires specific documents. The APT is a required document to hold a work visa, with the APT process taking at least 15 days. Once an APT has been obtained, the expat must visit the Algerian Embassy in their country of residence and apply for a temporary work visa.
The validity of a work permit is the same as the validity mentioned in the employment contract – one year.
Working hours and leaves in Algeria
Working hours and overtime
Working hours in Algeria are 37,5 hours per week; it is obligatory to provide 10 minutes break and an hourly lunch rate. Any work between 21:00 and 05:00 is considered as overtime night shift.
Under Algerian labor legislation, overtime should not have a recurring character and have exceptional nature. Overtime shall not exceed 20% of regular working hours. This overtime limit can only be waived if the following documented cases:
The overtime is paid and 50% mark-up on the standard working hour.
Employees in Algeria are entitled to annual vacation leave. Employees that worked from 1 of July to 30 of June are qualified for the annual holiday. Total paid annual leave shall not exceed 30 days per year. The annual leave is accrued at a rate of 1.5 per month.
Due to the harsh climate conditions in the South, wilayas additional ten days of vacation are added to the standard vacation leave period. Also, other holidays are granted to the workers employed on the dangerous and potentially harmful production.
An employee cannot be terminated during the annual leave.
The annual leave pay is calculated as 1/12 of the yearly remuneration of the employee.
Sick leave is paid starting from the first day of sickness. During the first 15 days of the illness, the employee is entitled to 50% of their standard salaries and wages. From the 16th-day, employees are entitled to 100% of their standard pay.
Maternity and paternity leave
According to the Algerian labor legislation, female workers are granted pre-and post-natal periods. Maternity leave is given for 14 weeks. For pregnant female workers to stop working, they need to provide the employer a medical certificate. During maternity, leave females are entitled to 100% of their pre-leave remuneration.
Male workers are entitled to a 3-day paid leave for the period of childbirth.
Under the Social Insurance Act of Algeria, all medical costs related to childbirth and hospitalization for eight days are covered by the government.
Holidays in Algeria 2021
Remuneration & Benefits in Algeria
The minimum wage since 1-Jan-2012 in Algeria is 18,000 Algerian dinars ($170) per month. That ranks Algeria 122 out of 197 countries worldwide.
Annual bonuses are standard practice in Algeria; however, the 13th salary is not mandatory by the labor legislation.
Employee termination and severance in Algeria
Before the employee’s termination, an official notification shall be provided to the employee. The current legislation does not specify the term of notice. It is also mandatory to hold an oral discussion with an employee before the termination.
If the dismissal or termination is based on the significant misconduct is should be documented in written and provided to the employee.
The notice period is usually stipulated in the labor agreement or the collective agreement. If not explicitly indicated in favor of an employee, it should not be shorter than the probation period fixed at the employment start.
Payroll related taxes in Algeria
Personal income tax is imposed at a progressive scale of up to 35% on amounts exceeding DZD 1.44 million per annum.
Social Security Contribution
Employee’s contribution to the Social security fund equals 9% of the gross salary.
Algerian citizens are taxed on their global income; non-residents are only taxed in local revenue.
The employer contributes 26% of the employee’s gross salary (employer contribution). The social security contributions cover retirement, illness, unemployment, and work accidents