Employer of Record in Algeria

An Employer of Record (EOR) in Algeria legally employs your workers in that country. This means the EOR handles all local employment tasks. You get to manage your team's day-to-day work, while the EOR takes care of the rest. This arrangement lets you hire in Algeria without setting up a local entity. Providers like Rivermate can simplify your global expansion.

How an Employer of Record (EOR) Works in Algeria

Using an EOR in Algeria follows a straightforward process. Here is how it works:

1. You Find the Talent. You recruit and select the person you want to hire in Algeria.
2. The EOR Hires Them. The EOR legally hires the employee on your behalf under a local employment contract.
3. Onboarding Begins. The EOR manages all the necessary paperwork for the new hire. This includes things like payroll registration and social security enrollment.
4. Day-to-Day Management. You manage your employee's daily tasks and responsibilities directly.
5. Payroll and Benefits. The EOR handles salary payments, taxes, and benefits according to Algerian law.
6. Compliance is Covered. The EOR ensures that all employment practices comply with local labor laws.

Why use an Employer of Record in Algeria

An EOR helps you expand into Algeria quickly and compliantly. It removes the need to establish a legal entity in the country, which saves you time and money. This lets you test the market without a major investment.

Here are some key benefits:

• Enter the Market Faster. You can hire employees and start operations in a fraction of the time it would take to set up a company.
• Ensure Legal Compliance. EORs are experts in Algerian labor law. They manage all legal requirements to keep you compliant.
• Simplify Payroll and HR. An EOR handles complex tasks like payroll processing, tax withholding, and benefits administration.
• Reduce Costs. You avoid the significant expenses associated with establishing and maintaining a legal entity abroad.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Algeria includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Algeria.

Hiring in Algeria means navigating a unique labor market. The government is a major employer, and the oil and gas industry plays a big role in the economy. For companies looking to expand here, understanding the local laws is key. You will find a young and educated workforce, but it can sometimes be a challenge to find specialized skills. Using an Employer of Record (EOR) can simplify the process, helping you hire quickly while staying compliant with local regulations.

Employment contracts & must-have clauses

When you hire an employee in Algeria, you need to provide a written contract. It should be in Arabic. Make sure any salary and compensation amounts are in Algerian Dinar.

Your contract should include these essential terms:

• Job description
• Compensation
• Benefits
• Termination requirements
• Paid time off

Probation periods

Probation periods in Algeria are determined by the employee's role and skill level. New employees can have a probation period of up to six months. For highly qualified positions, this can be extended to 12 months.

Working hours & overtime

The standard work week in Algeria is 40 hours, typically from Sunday to Thursday. Friday is the official day of rest.

Here is a breakdown of overtime:

Public & regional holidays

Employees in Algeria get paid time off for public holidays. These include a mix of national and religious holidays.

Some of the main public holidays are:

• New Year's Day
• Labour Day
• Independence Day
• Islamic holidays (which vary each year)

Hiring contractors in Algeria

You can hire independent contractors in Algeria, but it is important to classify them correctly. An independent contractor works autonomously, controls their own work, and often provides their own tools. An employee, on the other hand, is directed by the company and integrated into the business.

Misclassifying an employee as a contractor can lead to legal problems, including fines and penalties. An EOR can help you avoid these risks. We hire the worker on your behalf, making sure they are classified correctly under Algerian law. This ensures you comply with local labor laws while still getting the talent you need.

Paying your team in Algeria involves understanding a few key things. The system is straightforward, built on monthly pay cycles and clear rules for taxes and social security. Both you and your employees contribute to social security, and income tax is deducted directly from your employee's pay. It’s a process designed to be regular and predictable for everyone.

Payroll cycles & wage structure

In Algeria, you pay your employees monthly. Salaries are typically paid by the last working day of the month or within the first few days of the next month. While a 13th-month bonus isn't required by law, it's common to give bonuses, often at the end of the year or during religious holidays.

You must provide a detailed payslip each month. This document should clearly show the employee's basic salary, any deductions for social security and income tax, and the final net pay.

Overtime & minimums

The standard workweek in Algeria is 40 hours, usually spread over five days from Sunday to Thursday. Any work beyond these hours is considered overtime.

Overtime pay is at least 150% of the employee's normal hourly rate. There are limits on overtime. Employees cannot work more than 12 hours in a single day.

As of 2025, the national minimum wage is 20,000 Algerian Dinars (DZD) per month.

Employer taxes and contributions

As an employer, you are responsible for several contributions based on your employee's gross salary. These payments fund social security programs and professional training initiatives. The total contribution amounts to 28% of the employee's salary.

Here is a breakdown of your contributions:

Employee taxes and deductions

Your employees also contribute to social security from their gross salary. In addition, they pay a progressive income tax.

Here are the employee's social security contributions, which total 9%:

After deducting social security contributions, you withhold the Global Income Tax (IRG) from their remaining salary. The income tax rates are progressive.

Here are the 2025 income tax brackets:

In Algeria, understanding the local laws for employee benefits and leave is key to hiring and keeping a great team. The system is built on a foundation of required benefits set by the government. You'll find that employees get a good amount of paid time off each year. This includes vacation time, sick days, and leave for important family events.

Statutory leave

Algerian labor law provides several types of paid leave for employees. You must offer these to be compliant.

• Annual Leave: Employees are entitled to 30 days of paid annual leave. This is earned over a 12 month period. Workers in the southern provinces get an additional 10 days, for a total of 40 days.
• Sick Leave: Employees can take paid sick leave for up to 15 days at half of their regular salary. From the 16th day, or if they are hospitalized, the pay increases to their full salary. The national social security fund covers the cost of sick pay.
• Maternity Leave: Expecting mothers receive 14 weeks of fully paid maternity leave. They must take at least one week of this leave before the birth of their child.
• Paternity Leave: Fathers can take three days of paid leave for the birth of a child.
• Other Leave: You must also provide three days of paid leave for an employee's marriage, the birth of a child, the marriage of a child, or the death of a close family member. Employees are also allowed a one-time paid leave of 30 days to perform the Hajj pilgrimage.

Public holidays & regional holidays

Algeria has a number of national public holidays. The dates for Islamic holidays change each year because they are based on the lunar calendar.

Typical supplemental benefits

Beyond the required benefits, many companies offer extra perks to attract and retain employees. Here is a look at what is required by law versus what you might offer as an additional benefit.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) can make it simple. An EOR already has a legal entity in Algeria. This means you can hire employees and provide benefits without having to set up your own company there.

An EOR will:

• Ensure your benefits packages are compliant with Algerian law.
• Manage payroll and benefits administration.
• Help you offer competitive benefits to attract top talent.

Using an EOR saves you time and reduces risk. You can focus on growing your business while the EOR handles the details of local employment laws.

Ending a working relationship in Algeria requires careful steps. You need to follow specific rules for things like giving notice and paying severance. This process, known as offboarding, ensures you treat your former employee fairly and stay on the right side of the law.

Notice Periods

When you decide to end an employment contract, you must give the employee a notice period. Think of it as a heads up. The length of this period depends on the employee's role and how long they've worked for you.

• Standard notice: The minimum notice period is generally one month.
• Based on service: A common practice is to provide five days of notice for each year of service, with a maximum of 30 days.
• Skilled roles: For more skilled or managerial positions, the notice period can be longer, sometimes up to 12 months.

You can also choose to pay the employee for the notice period instead of having them work.

Severance Pay

Severance pay is a final payment to an employee when you end their contract. Not everyone is entitled to it. It's typically for employees who are let go without serious misconduct on their part.

The maximum severance pay is usually capped at three months of salary. If the termination is due to redundancy, the employee might be entitled to their salary for two months or until they find a new job.

How Rivermate Handles Compliant Exits

Navigating employee exits in another country can be tricky. At Rivermate, we make sure the process is smooth and compliant.

We handle the details of termination and offboarding for you. This includes:

• Calculating notice periods: We determine the correct notice period based on Algerian labor law and the employee's contract.
• Managing severance pay: We calculate and process the correct severance amount.
• Ensuring compliance: We stay up to date on local labor laws to make sure every termination is handled correctly, protecting you from legal risks.

We take care of the paperwork and procedures, so you can focus on your business.

Getting the right visas and work permits for Algeria can be complex. The process is employer-led, meaning your company in Algeria kicks things off. This guide breaks down what you need to know.

Employment visas & sponsorship realities

To work in Algeria as a foreign national, you need a work permit and a work visa. Your employer must start the process by getting a Temporary Work Authorization (APT) from the Ministry of Labor. This is a key step. It shows that your skills are needed.

An Employer of Record (EOR) can be your legal employer in Algeria. This means the EOR can sponsor your work visa. But, there can be limits due to visa quotas in the country. Not every role will qualify. The EOR must be a legally registered entity in Algeria to sponsor visas.

Here are the two main types of work visas:

• Temporary Work Visa: For jobs lasting up to 90 days.
• Work Visa: For long-term employment.

For both, your employer, or EOR, handles the initial application in Algeria. Once they secure the work authorization, you can apply for your visa in your home country.

Business travel compliance

If you are visiting Algeria for short-term business, you'll need a business visa. This visa is for activities like meetings, negotiations, or conferences. It does not allow you to work in the country.

A business visa is typically for stays of less than 90 days. To apply, you will generally need:

• An invitation letter from the company you are visiting in Algeria.
• A letter from your current employer explaining the reason for your trip and confirming they will cover your expenses.
• Proof of accommodation and a round-trip ticket.
• A valid passport with at least six months' validity.
• Completed visa application forms.
• Recent passport-sized photos.