Payroll and Benefits Guide Algeria
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 26% | Social Insurance contributions (to cover retirement, illness, unemployment, and work accidents) |
| 26% | Total Employment Contributions |
| Employee Payroll Contributions | |
| 9% | Social Insurance contributions |
| 9% | Total Employee Cost |
| Income Tax |
Social Insurance * (Sickness & Maternity Fund) applied on income up to 46,800,000 DZD monthly
|
| 0% |
up to 240,000 DZD
|
| 23% |
240,001 DZD to 480,000 DZD
|
| 27% |
480,001 DZD to 960,000 DZD
|
| 30% |
960,001 DZD to 1,920,000 DZD
|
| 33% |
1,920,001 DZD to 3,840,000 DZD
|
| 35% |
above 3,840,000 DZD
|
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage in Algeria is 20,000 DZD per month
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Algeria is monthly.
13th Salary
There is no statutory requirement to provide a 13th salary.
Working Hours
General
The standard workweek in Algeria consists of a maximum of 40 hours per week (8 hours a day, 5 days a week). The working week typically runs from Sunday to Thursday, as Friday is the statutory day of rest each week.
Overtime
- Maximum Ordinary Hours: The legal standard work limit is 40 hours per week, distributed over a minimum of five working days.
- Daily Maximum: The total daily working time, including overtime, cannot exceed 12 hours (Ordinance 97-03, Article 26).
- Maximum Overtime Cap (Labour Law Article 31): The total recourse to overtime work is limited to 20% of the legal work duration.
- For a 40-hour work week, this translates to a maximum of 8 hours of overtime per week (20% of 40 hours).
- The total annual limit for overtime is not explicitly stated in the law but is implied by the weekly limit and often detailed in collective agreements.
- Recourse to Overtime: Overtime must respond to an absolute necessity of service and be of an exceptional nature. Worker representatives must be consulted, and the competent Labour Inspector must be informed.
- Exemptions: High-level managers and executives are typically exempt from the overtime provisions due to the nature of their duties.
Mandatory Overtime Pay Rates (Labour Law Article 32)
Algerian law mandates minimum premium rates for overtime, with higher rates for night work and work on rest days/holidays.
| Day/Condition | Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | +50% of the regular hourly wage. | 150% | This is the minimum required for all overtime hours performed beyond 40 hours/week. |
| Night Overtime (9:00 PM – 5:00 AM) | +75% of the regular hourly wage. | 175% | Applies to hours worked during the designated night period. |
| Weekly Rest Day & Public Holidays | +100% of the regular hourly wage. | 200% | The employee is entitled to this premium, and the law mandates a compensatory rest period of equal duration for working on a rest day or legal holiday. |
Note on Night Work: Night work is defined as any work carried out between 9:00 PM and 5:00 AM.
Leave
Annual Leave (vacation)
The Algerian Labor Law entitles employees to 30 days of paid annual leave accumulated over 12 months with the exception of those employees working in the southern provinces who are entitled to 40 days’ paid annual leave.
PTO carryover
Under Algerian labour law, employees are entitled to paid annual leave (typically 30 calendar days per year). Carrying over unused leave from one year to the next is generally not permitted by default – leave should normally be taken in the period provided and any carry-over is only allowed in exceptional cases such as service necessity. Unused annual leave must be paid out if the employment ends.
Public Holidays
There are 12 national holidays in 2022.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 Jan 2026 | Thursday | New Year’s Day | Standard holiday |
| 12 Jan 2026 | Monday | Amazigh / Berber New Year (Yennayer) | Standard holiday |
| 20 Mar 2026 | Friday | Eid al-Fitr (End of Ramadan) — tentative date | Standard holiday |
| 21 Mar 2026 | Saturday | Eid al-Fitr Holiday (day 2) — tentative date | Standard holiday |
| 22 Mar 2026 | Sunday | Eid al-Fitr Holiday (day 3) — tentative date | Standard holiday |
| 1 May 2026 | Friday | Labour Day / May Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) — tentative date | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha Holiday (day 2) — tentative date | Standard holiday |
| 16 Jun 2026 | Tuesday | Islamic New Year / Awal Muharram — tentative date | Standard holiday |
| 25 Jun 2026 | Thursday | Ashura (10th of Muharram) — tentative date | Standard holiday |
| 5 Jul 2026 | Sunday | Independence Day (Algeria) | Standard holiday |
| 25 Aug 2026 | Tuesday | Prophet Muhammad’s Birthday (Mawlid) — tentative date | Standard holiday |
| 1 Nov 2026 | Sunday | Anniversary of the Revolution (Algeria) | Standard holiday |
Sick Days
Employees are entitled to 15 days of paid sick leave at half salary from their first day of sick leave and full salary from the 16th day of sickness onwards or if the employee is admitted to the hospital prior to the 16th day.
Sick pay and the reimbursement of medical expenses are funded by the National Fund of Social Security, based on the mandatory social contributions paid by the employer and the employee.
Maternity Leave
Pregnant women are entitled to maternity pay of 100% of their average regular salary (based on average for their position) for a maximum of 14 weeks and the employee must stop working at the latest one week before confinement. To receive these payments, a registered doctor or qualified professional must have assisted at the birth.
For employees within their first six months of employment, employees are entitled if they have worked at least 9 days or 60 hours during the three preceding months or 36 days or 240 hours during the 12 preceding months.
Paternity Leave
Fathers are entitled to 3 days paid paternity (emergency) leave for the birth of a child.
Parental Leave
Algerian law provides paid daily breastfeeding time off after maternity leave, not a statutory 18-week part-time paid parental leave scheme.
Other Leave
An employee can take a maximum of 30 calendar days’ paid leave to perform Hajj, once in their employment.
3 days paid leave for Marriage of the employee (or their dependent)
3 days paid leave for bereavement
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers must provide notice of dismissal absence and serious misconduct to the employee. Employees should receive a form of compensation if they are dismissed, if;
- They have worked for the company for at least two years.
- If they are terminated for reasons other than misconduct
It is common to terminate using a Mutual Termination Agreement with a month notice period.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Standard practice: monthly wage payment, typically on the last working day of the month. | The law provides for severance pay when termination occurs without serious misconduct: e.g., one month’s salary per year of service (capped at 15 months) in indefinite contracts. | No statute in the sources I found clearly mandates all wages must be paid into a bank account or via electronic transfer. |
Notice Period
Dismissal of an employee who has not committed serious misconduct requires a period of notice. The minimum duration has neither been set by law nor by a regulatory text. In practice, such notice periods are governed by collective agreements in respect of the company’s industry or internal company regulations.
Severance Pay
In the event of individual or collective dismissal within an organization, an employee hired for an indefinite period is entitled to severance pay at the following rate:One month per year of work with the employer, with a limit of fifteen (15) months. The amount of severance pay is calculated based on the highest monthly average of remuneration received during the employee’s last three years of work.
Probation Period
The general permitted probation period in Algeria is a maximum of 6 months for a permanent contract. This period may also be increased to twelve (12) months for highly qualified work positions.
Immigration
Most foreign nationals require a visa to enter Algeria and there are essentially three main types of visas: tourist, business and work. While there are Algerian embassies in most major capitals around the world, there are not many consulates.
The work visa is more complex and needs documents from the Algerian Ministry of Labour, including the work contract and a work permit. Unfortunately, the work visa application can be a lengthy process.
VAT
General
The Standard rate of VAT in Algeria is 19%
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Payroll and Benefits Guide
in Algeria
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 Jan 2026 | Thursday | New Year’s Day | Standard holiday |
| 12 Jan 2026 | Monday | Amazigh / Berber New Year (Yennayer) | Standard holiday |
| 20 Mar 2026 | Friday | Eid al-Fitr (End of Ramadan) — tentative date | Standard holiday |
| 21 Mar 2026 | Saturday | Eid al-Fitr Holiday (day 2) — tentative date | Standard holiday |
| 22 Mar 2026 | Sunday | Eid al-Fitr Holiday (day 3) — tentative date | Standard holiday |
| 1 May 2026 | Friday | Labour Day / May Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) — tentative date | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha Holiday (day 2) — tentative date | Standard holiday |
| 16 Jun 2026 | Tuesday | Islamic New Year / Awal Muharram — tentative date | Standard holiday |
| 25 Jun 2026 | Thursday | Ashura (10th of Muharram) — tentative date | Standard holiday |
| 5 Jul 2026 | Sunday | Independence Day (Algeria) | Standard holiday |
| 25 Aug 2026 | Tuesday | Prophet Muhammad’s Birthday (Mawlid) — tentative date | Standard holiday |
| 1 Nov 2026 | Sunday | Anniversary of the Revolution (Algeria) | Standard holiday |
Questions & Answers