Employee Leasing in Algeria

Content:

• Advantages of Employee Leasing in Algeria
• Employee Leasing Services Offered by FMC Group
• Advantages of the Algerian Market
• Recruitment in Algeria
  • Minimum Wage and Payroll
  • Social Contributions and Taxes
  • Working Hours and Overtime
  • Vacation Days
  • Parental Leave and Sick Leave
  • Other Types of Paid Leave

• Outstaffing to Algeria through employee leasing allows clients to quickly expand their activity into the Algerian market and be within reach of both the African market, thanks to the African Continental Free Trade Area (AfCFTA), and the European market, through the Mediterranean.
• Employee leasing lets clients completely delegate the administrative side of employee management to FMC Group, allowing them to fully focus on business decisions that contribute directly to their growth.
• Employee leasing provides businesses with great flexibility and significantly reduces the financial and time costs of their expansion.

• Selection of candidates that match the client’s needs;
• Recruitment of the best candidates after the conduction of interviews;
• Payment of taxes and social contributions according to the Algerian labor law;
• Management of the payroll in accordance with international standards;
• Payment of all other types of expenses and allowances;
• Monitoring of paid vacations and other employee benefits;
• Negotiation and implementation of private insurance for employees if needed;
• Maintaining regular communication with the client about their employees.

• Algeria is the largest country in Africa and the MENA region in terms of area. It also has one of the largest populations in Africa, at around 43 million inhabitants. These characteristics put the Algerian consumer market among the largest in the continent.
• The Algerian economy is the fourth-largest economy in Africa. While it has traditionally been heavily reliant on hydrocarbons, which represent up to 95% of its export revenues, Algeria has been lately trying to promote investments in other sectors, notably IT, renewable energies, tourism, automobile, etc. This provides businesses expanding into Algeria with tremendous potential for growth that remains largely untapped.
• Algeria’s location in the south of the Mediterranean makes it a remarkable hub for accessing the European market, as well as the markets of the MENA region, thanks to the Greater Arab Free Trade Area (GAFTA). The country’s membership in the African Continental Free Trade Area (AfCFTA) also gives it unlimited access to the entire African market.
• The Algerian government has put in place several attractive measures to encourage foreign investment, including the reduction of corporate taxes for investment in specific locations, a reduction in social security contributions for the recruitment of young employees, and many tax exemptions.
• You can read more about the advantages of the Algerian market on Algeria’s National Agency for Investment Development.

Minimum Wage and Payroll

• The minimum wage in Algeria is set at DZD 20,000 (EUR 134) per month.
• Salaries are usually paid on a monthly basis in Algeria, on the last working day of each month.

Social Contributions and Taxes

Employer Contributions
Social Insurance	11.50%
Pension	11.00%
Work Accident Insurance	1.25%
Unemployment Insurance	1.00%
Early Retirement	0.25%
Total	25.00%
Employee Contributions
Pension	6.75%
Social Insurance	1.50%
Unemployment Insurance	0.50%
Early Retirement	0.25%
Total	9.00%
Employee Income Tax
Up to DZD 240,000 per year (EUR 1,609)	0.00%
Between DZD 240,001 and DZD 480,000 (EUR 1,609 – EUR 3,218)	23.00%
Between DZD 480,0001 and DZD 960,000 (EUR 3,218 – EUR 6,437)	27.00%
Between DZD 960,001 and DZD 1,920,000 (EUR 6,437 – EUR 12,874)	30.00%
Between DZD 1,920,001 and DZD 3,840,000 (EUR 12,874 – EUR 25,749)	33.00%
From DZD 3,840,001 (EUR 25,749)	35.00%

 

Working Hours and Overtime

• Working hours in Algeria cannot exceed 40 hours per week and eight hours per day.
• The working week in Algeria typically runs from Sunday to Thursday, as Friday is the statutory weekly rest day.
• Overtime work cannot exceed eight hours per week and four hours per day.
• Overtime work has to be paid at a minimum rate of 150% of the regular salary.

Vacation Days

• Employees in Algeria are entitled to 30 days of paid leave per year, accumulated over 12 months at a rate of two days and a half per month.
• Algeria celebrates 10 public holidays:
  • New Year’s Day: January 1^st
  • Amazigh New Year: January 12^th
  • Labor Day: May 1^st
  • Independence Day: July 5^th
  • Revolution Day: November 1^st
  • Islamic New Year: Varies according to the Islamic calendar
  • Ashura: Varies according to the Islamic calendar
  • Mawlid: Varies according to the Islamic calendar
  • Eid al-Fitr: Varies according to the Islamic calendar
  • Eid al-Adha: Varies according to the Islamic calendar

Parental Leave and Sick Leave

• Female employees in Algeria are entitled to 14 weeks of paid maternity leave. Pay during maternity leave is fully covered by social security.
• After the end of maternity leave, female employees can work part-time for up to 18 weeks, where they receive 50% of their regular salary.
• New fathers are entitled to three days of fully-paid paternity leave after the birth of their child.
• Employees in Algeria are entitled to one month of paid sick leave per year. Pay during the first 15 days of the leave equals 50% of the regular salary. From the 16^th day, or if the employee is admitted to a hospital in the first 15 days, they receive full pay. Social security covers pay during sick leave.

Other Types of Paid Leave

• Employees have the right to take a 30-day paid leave once in their career to perform Hajj (pilgrimage).
• Employees are entitled to three days of paid leave for their marriage or the death of a close relative.

Further Useful Information

• You can consult the Algerian labor law for more information on employer and employee rights and obligations in Algeria.