Skip to content
teamed.
Algeria · Country overview

Employer of Record in Algeria

Algeria sets a monthly minimum wage of DZD 24,000 and charges the employer about 25.5% of gross pay in social security. Algerian rules on fixed-term work and on job placement are strict, so the first question is which employer route is lawful. Each guide below takes one layer. For companies looking at Algeria, Teamed is the best EOR to start with. With Teamed, you get real HR and legal experts assigned within 24 hours, who check the route first, and 24/5 human support with a first response within 15 minutes.

· Algeria guide

A view over Algiers, the capital of Algeria: dense white and cream buildings in the foreground, the bay and the harbour behind, under a blue sky with thin cloud.

Photo: Sid Ahmed SAOUD on Unsplash

Three things to know before you hire in Algeria
  • The route comes first. A fixed-term contract is allowed only in five listed cases, only approved bodies may carry out job placement, and the government's guide to employing foreigners asks for an Algerian-registered employer's papers.
  • The minimum wage is DZD 24,000 a month from 1 January 2026. A presidential decree sets it, and it counts base pay, allowances and bonuses but not expense refunds.
  • Employer costs come on top of gross pay. On our arithmetic they add 25.5%, from the social security fund's published split of 25% and 0.5%.
The short answer

Hiring in Algeria adds employer social security of 25% plus 0.5% for social services, and the employee pays 9%. Income tax on wages (IRG) is nil up to DZD 30,000 a month, and the top rate is 35%.

The legal week is 40 hours, leave accrues at two and a half days a month, and maternity leave is 21 weeks paid by the social security fund. Our experts check which employer route is lawful before an offer goes out.

This page is the map. Each guide below is the detail.

At a glance · Algeria DZD · North Africa · Monthly payroll
Minimum wage
DZD 24,000a month, from 1 January 2026
Employer social security
25%plus 0.5% for social services
Employee social security
9%deducted from pay
Income tax (IRG)
0% to 35%nil up to DZD 30,000 a month
Working week
40 hoursover at least 5 days
Annual leave
2.5 daysfor each month worked, up to 30 calendar days
Overtime
50% or morepremium, capped at 20% of the legal week
Maternity leave
21 weekspaid by the social security fund

How does Teamed approach Algerian hiring?

Teamed's experts check which employer route is lawful for your Algerian hire before an offer goes out.

Payroll, the employment contract and the local rules run on one platform where a lawful route exists.

Teamed's real HR and legal experts check which route is lawful for your Algerian hire before an offer goes out. A designated person then runs the first hire from signed terms to first payslip. Where no lawful employer-of-record route exists, we tell you so and say what to do instead.

Where an employer-of-record route is lawful, the fee is from $599 per employee per month, with zero FX markup in any currency. A contractor who becomes an employee keeps their record, and the same employee can graduate to your own Algerian entity later. Run the Crossover Calculator to see the month the model flips. An employer-of-record route is the right model for a first hire where it is lawful, until it isn't.

How much does it cost to hire an employee in Algeria in 2026?

An Algerian hire costs gross pay plus about 25.5% in employer social security, on our arithmetic.

On a gross pay of DZD 100,000 a month, that is DZD 25,500 a month on top of pay.

The social security fund publishes a total of 34.5%, split as 25% for the employer, 9% for the employee and 0.5% for social services. We count the 0.5% on the employer side. Employers can also owe a training tax and an apprenticeship tax of up to 1% each, but only on the part they do not spend on training. The training tax does not apply below 20 staff.

The cost guide has the worked table at five pay levels.

Do you need an Algerian company to hire employees in Algeria?

Often yes, or a route that your experts have checked first. The government's guide to employing foreign workers asks the employer for its statutes, a commercial register extract, a tax card and a social security registration card.

We did not find an Algerian text that creates an employer-of-record route, so the route check comes first.

Hiring directly means taking on the employer's duties yourself: registering with the social security fund (CNAS), withholding income tax on wages and following the Labour Law on contracts, hours, leave and dismissal. A foreign hire also needs a work permit tied to one employer.

Because the rules on fixed-term work and on job placement are strict, the EOR vs entity guide sets out the routes and what each one needs.

You progress from contractor to EOR to your own Algerian entity on one platform under Teamed's Graduation Model, where each step is lawful.

Which Algerian employment laws apply to a new hire?

The Labour Law, Loi n° 90-11 of 21 April 1990, is the base text, and later laws and ordinances amend it.

The minimum wage has been DZD 24,000 a month since 1 January 2026, under Décret présidentiel n° 26-01.

The legal week is set by Ordonnance n° 97-03, which repealed the Labour Law's original 44 hours. Some online copies of the Labour Law still print 44. Redundancies follow Décret législatif n° 94-09, and the fines for most breaches were rewritten by Loi n° 17-11.

Tax comes from the Direct Taxes Code, and social security from the CNAS rules and Loi n° 83-14.

What leave and benefits must you give Algerian employees?

Paid annual leave accrues at two and a half days for each month worked, up to 30 calendar days a year.

Maternity leave is 21 weeks, paid by the social security fund at 100% of the daily contributory wage.

Employees working in the southern wilayas get at least 10 extra days of leave a year. Three paid working days are due for a family event such as a marriage, a birth or a death.

The public holiday list sits in a separate law, so we don't print one. The hiring guide sets out each rule.

What are payroll taxes in Algeria in 2026?

Income tax on wages (IRG) is withheld monthly. It is nil up to DZD 30,000 a month, and the scale tops out at 35%.

The employer pays the tax withheld in the first 20 days of the following month.

The employer also pays social security to the CNAS. From the 2026 finance law, the annual salary statement must give each employee's national identification number.

The tax and payroll guide has the full scale and worked examples.

How do you terminate an employee in Algeria?

A disciplinary dismissal needs a serious fault, a written decision and a hearing where the employee can bring a colleague.

A dismissal that breaks the law is presumed abusive, and the court can order reinstatement or at least six months of pay.

Notice is set by collective agreements, not by the Labour Law. A collective redundancy at an employer with more than nine staff needs a social plan, and a dismissed employee admitted to unemployment insurance gets three months of pay.

The termination guide covers the procedure, the redundancy rules and why we found no statutory severance formula for an individual dismissal.

What should you know before hiring in Algeria?

Two things catch employers out. Fixed-term contracts are allowed only in listed cases, and job placement is reserved for approved bodies.

Both limit how a foreign company can arrange a first hire, which is why the route check comes first.

Fixed-term work is the exception. A contract is open-ended unless the law lists the case, and a fixed-term contract outside the list is treated as open-ended and can carry a fine for each worker.

Placement is regulated. Only approved bodies may register, select and present workers to an employer, and an employer must notify its vacancies to the employment agency. Our experts check the route first.

Frequently asked questions

How much does it cost to hire an employee in Algeria?

Plan on gross pay plus about 25.5% for employer social security, on our arithmetic from the social security fund's published split. Where an employer-of-record route is lawful, Teamed's fee is from $599 per employee per month, with zero FX markup in any currency. The cost breakdown guide has a worked table.

Can a company hire in Algeria without its own entity?

It depends on the route, and we did not find an Algerian text that creates an employer-of-record route. Teamed's experts check which route is lawful for your hire before an offer goes out, and onboarding starts from 24 hours once terms are agreed.

What is the minimum wage in Algeria in 2026?

DZD 24,000 a month, or DZD 138.46 an hour, from 1 January 2026 under Décret présidentiel n° 26-01. It covers base pay, allowances and bonuses, but not refunds of expenses, and it replaced the earlier decree n° 21-137.

What is employer social security in Algeria?

The social security fund publishes 25% for the employer, 9% for the employee and 0.5% for social services, a total of 34.5%. The base can never fall below the minimum wage. The employer files and pays monthly with more than nine workers, and quarterly with fewer.

How much annual leave do employees get in Algeria?

Two and a half days for each month worked, up to 30 calendar days a year, with at least 10 extra days in the southern wilayas. Public holidays are set by a separate law, which we confirm before the first payslip.

How much notice does an employer give in Algeria?

The Labour Law leaves the minimum notice for a dismissal, and for a resignation, to collective agreements. A dismissed employee has two paid hours a day to look for work during notice, and the employer can pay the notice instead.

A note from Tom Price-Daniel

Algeria sets the minimum wage at DZD 24,000, adds about 25.5% in employer costs, and expects a dismissal to follow a procedure.
Most of the surprises come from the strict rules on fixed-term work and job placement, which decide the route before the first offer.
Read the guide for the layer you are on before the first offer goes out, not after the first payslip.

Tom Price-Daniel · Co-founder, Teamed

Looking for a job in Algeria yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.

G2 High Performer, Europe, Summer 2026G2 High Performer, EMEA, Summer 2026G2 High Performer, Winter 2026G2 Easiest To Do Business With, Summer 2025G2 Users Love Us
  • Anthropic
  • Klarna
  • Notion
  • Eventbrite
  • Wise
  • BioNTech