Payroll & Employment Guide Algeria flag

Payroll & Employment Guide Algeria

Algeria is one of North Africa’s largest economies, known for its natural resources and expanding infrastructure. With a youthful an educated population, Algeria offers a promising environment for businesses looking to grow in the MENA region. The country's stable minimum wage, regulated working hours, and structured tax system make it an important destination for remote hiring and expansion.

Payroll & Employment Guide Algeria
CurrencyAlgerian Dinar (DZD)
LanguagesArabic, Tamazight
Minimum wageDZD 20,000 per month
Employment cost26
Working hours40 hours per week
VAT19%
Probation periodUp to 6 - 12 months
Paid leave days30 days per year
Categories

Hiring guide

Algeria’s labour market is governed by a formal legal framework that defines employment contracts, taxes, benefits, and employer responsibilities. While navigating local rules can be challenging, Algeria’s growing talent pool and strategic location make it an attractive choice for companies expanding in the region.

Get all the details on local regulations, minimum wage, employee entitlements, and social contributions in our full hiring guide.

Employment contracts

Employment contracts in Algeria must be documented in writing and align with the Algerian Labour Law. Both fixed-term and permanent contracts are legally recognised and must clearly state the terms of employment, duties, and compensation.

Notice periods: In Algeria, notice periods depend on collective agreements and the employee’s length of service. Employers must add five extra days per year of service, up to 30 days. If no agreement applies, the legal minimum is unclear, though it may range from six to twelve months for skilled roles.

Termination of employment: Permitted under specific grounds such as misconduct, redundancy, or mutual agreement. Local legal advice is recommended to ensure compliance.

Want to learn more about employment contracts in Algeria? Get our full template now!

Employee benefits

Algerian employers are required to offer mandatory benefits, including social security and health coverage. To remain competitive, many also provide additional perks.


Mandatory benefits: Social security contributions (healthcare, pensions), paid leave, overtime pay.
Common perks: Transport allowances, performance bonuses.

Leave policies: Annual leave, sick leave, maternity leave, paternity leave, hajj leave, marriage/bereavement leave

Want to learn more about all the employee benefits available in Algeria?

Taxes

VAT: 19%

Want to find out more about Algeria’s tax allowances and similar tax regulations? Click here to read more now!

Payroll

Payroll in Algeria must comply with local employment laws and deadlines. Wages must be paid in DZD unless otherwise agreed upon, and accurate payroll reporting is mandatory.

Salary payment deadline: The last working day of each month

Taxes and contributions payment deadline: 20th of the following month

Payroll declarations deadline: Annual declarations from 30 April to 1 June

Payroll currency: Algerian Dinar (DZD)

Want to learn more about Algeria’s regulations about payroll, salaries, and contributions? Click here to read more now!

EOR services

Using EOR services in Algeria allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

Using PEO services in Algeria provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Algeria but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

Native Teams provides a payroll calculator adjusted per Algeria’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Algeria with our localised calculator. Designed to meet all payroll and compliance requirements.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

Last update: July 30, 2025

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Frequently asked questions

Freelancers or gig workers are typically registered as independent contractors and manage their own taxes. As a client, you aren’t responsible for tax withholdings but must ensure the relationship doesn’t mimic full-time employment.

When working with freelancers or gig workers, it’s also essential to have a clear contract that outlines the scope of services, duties, payment terms, and other key details.