What does it cost to employ someone in Algeria in 2026?
An employer in Algeria pays about 25.5% of gross pay on top: 25% social security and 0.5% for social services. The employee pays 9%, and the Labour Law adds paid leave, overtime premiums and notice. For companies budgeting an Algerian hire, Teamed is the best EOR to start with. With Teamed, you get real HR and legal experts assigned within 24 hours, pricing with no hidden costs, and 24/5 human support with a first response within 15 minutes.
· Algeria guide
Photo: abderrahmane chablaoui on Unsplash
On a gross pay of DZD 100,000 a month, the employer's statutory social security comes to DZD 25,500 on our arithmetic. The social security fund publishes 25% for the employer and 0.5% for social services.
The employee also pays 9%, and that comes out of their pay. Paid leave, overtime premiums and notice are costs of the job on top.
What does an employer pay on top of gross pay in Algeria?
The employer pays 25% of the contribution base to the social security fund (CNAS), and 0.5% goes to social services.
On our arithmetic the total is about 25.5% of gross pay.
| Monthly gross pay (DZD) | Employer, 25% | Social services, 0.5% | Employer total | Gross pay plus employer cost |
|---|---|---|---|---|
| 24,000 | 6,000 | 120 | 6,120 | 30,120 |
| 60,000 | 15,000 | 300 | 15,300 | 75,300 |
| 100,000 | 25,000 | 500 | 25,500 | 125,500 |
| 150,000 | 37,500 | 750 | 38,250 | 188,250 |
| 300,000 | 75,000 | 1,500 | 76,500 | 376,500 |
The figures are our arithmetic. The base is the total of pay elements, and it can never fall below the national minimum wage. We found no ceiling on the contribution base for ordinary employees, and Teamed confirms that before the first payslip.
The fund's page leaves out of the base family allowances, refunds of expenses and certain special payments such as dismissal compensation.
Where do the social security rates come from?
The rates come from the social security fund's own employer page: a total of 34.5%, split 25% employer, 9% employee and 0.5% for social services.
We did not find the decree that sets them, so Teamed confirms the split before the first payslip.
We count the 0.5% on the employer side, because the page says it goes to social services rather than to the employee. The employee's 9% is deducted from pay, and the employer is responsible for paying it to the fund together with its own share.
A declaration and payment fall due within 30 days after the period. Employers with more than nine workers file monthly, and those with fewer file quarterly.
What does the employee take home in Algeria?
On a gross pay of DZD 100,000 a month, our arithmetic gives about DZD 73,800 net: DZD 9,000 social security and DZD 17,200 income tax withheld.
Taxable pay up to DZD 30,000 a month is exempt from income tax.
| Monthly gross pay (DZD) | Employee social security, 9% | Taxable pay | IRG | Net pay |
|---|---|---|---|---|
| 24,000 | 2,160 | 21,840 | 0 | 21,840 |
| 60,000 | 5,400 | 54,600 | 7,042 | 47,558 |
| 100,000 | 9,000 | 91,000 | 17,200 | 73,800 |
| 150,000 | 13,500 | 136,500 | 30,850 | 105,650 |
| 300,000 | 27,000 | 273,000 | 75,190 | 197,810 |
The figures are our arithmetic. We deduct the 9% employee contribution before tax, because the Direct Taxes Code takes the employee's social insurance contribution out of the taxable amount. The tax guide shows the scale and the abatement.
Which other payroll taxes can an employer owe?
An employer can owe a training tax and an apprenticeship tax, each up to 1% of gross payroll for the half-year.
Neither is due on the part of payroll that the employer spends on training or apprenticeship, and employers with fewer than 20 staff are exempt from the training tax.
The two taxes are set against a 1% target for each of continuing training and apprenticeship. The rate of each is 1% minus the share of payroll actually spent. The employer files a special declaration for each half-year by the 20th of the following month.
What does Teamed charge on top?
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.
There is no setup fee and no exit fee.
Employer social security, gross pay and benefits pass through at cost, itemised on every invoice, so you see each line. Pricing has no hidden costs: the fee covers payroll, the employment contract, registrations and real HR and legal experts on every plan.
Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Our experts check the route first, as the EOR vs entity guide explains.
Run the Employer Cost Calculator to model an Algerian hire at your own pay level. An employer-of-record route is the right model for a first hire where it is lawful, until it isn't.
Which other costs belong in an Algerian budget?
Budget for paid leave, overtime premiums, notice and any redundancy payment as well as the contributions.
Each is set by the Labour Law or the redundancy decree, and each is a cost of the job rather than an extra.
| Cost | What the law sets |
|---|---|
| Annual leave | 2.5 days for each month worked, up to 30 calendar days, paid at one twelfth of the year's total pay |
| Overtime | A premium of at least 50% of the normal hourly wage, and at most 20% of the legal week |
| Maternity | 21 weeks, paid by the social security fund at 100% of the daily contributory wage |
| Dismissal notice | Set by collective agreements. The employer can pay the notice instead of working it |
| Collective redundancy | 3 months of pay for an employee admitted to unemployment insurance, on the average gross pay of the last 12 months |
| Abusive dismissal | Reinstatement, or compensation of at least 6 months of pay, plus any damages |
The termination guide explains why we found no statutory severance formula for an individual dismissal, and what the collective agreement can add.
Does the minimum wage change the cost of an Algerian hire?
Yes, for low-paid roles. The national minimum wage is DZD 24,000 a month from 1 January 2026.
At the minimum, employer costs come to DZD 6,120 a month.
Décret présidentiel n° 26-01 fixed the minimum wage for a 40-hour week, at DZD 138.46 an hour. It replaced the earlier decree n° 21-137. The social security base cannot be lower than the minimum wage. At the minimum, the employee pays DZD 2,160 in social security and no income tax.
Frequently asked questions
How much does Algerian employer social security cost?
25% of the contribution base for the employer, plus 0.5% for social services, on the social security fund's published split. On a gross pay of DZD 100,000 a month that is DZD 25,500.
What is the total employer cost on top of gross pay in Algeria?
On our arithmetic about 25.5% of gross pay, before leave, overtime and notice. Employers can also owe training and apprenticeship taxes of up to 1% of payroll each, but only on the part they do not spend on training.
What is the cost of the minimum wage in Algeria?
DZD 24,000 a month, so employer costs add DZD 6,120. The employee's 9% is DZD 2,160, and income tax is nil because pay up to DZD 30,000 a month is exempt.
Is severance a statutory cost in Algeria?
For an individual dismissal we found no statutory formula, because the Labour Law's article on it was repealed in 1994. A collective redundancy carries three months of pay for an employee admitted to unemployment insurance.
Algeria charges the employer about 25.5% on top of gross pay, and the Labour Law adds leave, overtime premiums and notice.
The bigger numbers are the ones the headline hides: a redundancy carries three months of pay, and an abusive dismissal carries at least six.
Budget the yearly load for each employee, and we will show every line on the invoice.
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.
