How does Algerian payroll tax work in 2026?
Algeria runs payroll monthly. Income tax on wages (IRG) is withheld by the employer under a six-band scale from nil to 35%, and social security goes to the CNAS. The tax withheld is paid in the first 20 days of the following month. For companies paying staff in Algeria, 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 an itemised invoice that shows each statutory cost.
· Algeria guide
Photo: Halima Bouchouicha on Unsplash
Algeria withholds income tax on wages (IRG) monthly. Taxable pay up to DZD 30,000 a month is exempt, and the annual scale tops out at 35%. The employer pays what it withheld in the first 20 days of the following month.
Social security goes to the CNAS: 25% from the employer and 0.5% for social services, and 9% from the employee.
How does income tax work for Algerian employees?
Wages are taxed under the IRG scale in article 104 of the Direct Taxes Code, which is nil up to DZD 240,000 a year.
Above that, five marginal bands apply, with a top rate of 35% above DZD 3,840,000 a year.
| Annual taxable income (DZD) | Rate |
|---|---|
| Up to 240,000 | 0% |
| 240,001 to 480,000 | 23% |
| 480,001 to 960,000 | 27% |
| 960,001 to 1,920,000 | 30% |
| 1,920,001 to 3,840,000 | 33% |
| Above 3,840,000 | 35% |
For wages the tax is worked out monthly, on the scale divided across the month. It is then reduced by a 40% abatement, which cannot be lower than DZD 1,000 or higher than DZD 1,500 a month.
Taxable pay up to DZD 30,000 a month is wholly exempt. Pay between DZD 30,000 and DZD 35,000 gets a second abatement, and the tax is the figure after the first abatement times 137/51, minus 27,925/8. Different rules apply to some disabled workers and to retirees.
The table is article 104 of the 2026 edition of the Direct Taxes Code, which the tax authority (DGI) publishes.
What counts as taxable pay in Algeria?
Taxable pay is gross pay and benefits in kind, minus the employee's pension retentions and social insurance contribution.
Bonuses that are not paid monthly are withheld at a flat 10%.
The Code treats pay, allowances, bonuses and benefits in kind as income. Some payments are exempt: allowances for travel or mission expenses, geographic-zone allowances, family allowances, and the dismissal indemnity.
Bonuses and similar payments with a periodicity other than monthly count as a separate month of pay and carry a 10% withholding. This is why our worked examples use taxable pay, after the 9% employee contribution.
What is the income tax at three pay levels?
On a taxable monthly pay of DZD 150,000, the IRG is DZD 34,900, or 23.3% of that pay.
These rows come from the tax authority's own monthly table, and we checked each against article 104.
| Taxable monthly pay (DZD) | IRG (DZD) | Share of pay |
|---|---|---|
| 60,000 | 8,500 | 14.2% |
| 150,000 | 34,900 | 23.3% |
| 300,000 | 84,100 | 28.0% |
For DZD 60,000, the scale gives DZD 10,000 before the abatement, which is capped at DZD 1,500, so the tax is DZD 8,500. The employer's own contributions are not deducted from the employee's pay.
The cost guide takes these rows back to gross pay, after the 9% employee contribution. Teamed runs each payslip from the contract.
What does Algerian social security cost the employer and the employee?
The social security fund publishes a total of 34.5%: 25% for the employer, 9% for the employee and 0.5% for social services.
The employer pays both shares to the CNAS and deducts the employee's share from pay.
The base is the total of pay elements and results of work, and it can never fall below the national minimum wage. Family allowances, refunds of expenses and some special payments are outside the base.
An employer asks the fund to affiliate a worker within 10 days of hiring. Each year, within 30 days of the year's end, the employer sends a nominal statement of wages and workers. We did not find the decree that sets the rates, so Teamed confirms them before the first payslip.
How does Algerian payroll run each month?
Tax and contributions are worked out monthly from each employee's pay.
The tax withheld is paid in the first 20 days of the following month, and social security is declared and paid within 30 days after the period.
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Work out gross and taxable pay
Add base pay, allowances, bonuses and benefits in kind, then take off the employee's 9%.
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Withhold the IRG
Apply the monthly scale, the abatement and the exemption, and show the tax clearly on the payslip.
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Pay the tax office
The tax withheld for a month is due in the first 20 days of the following month.
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Declare and pay the CNAS
Employers with more than nine workers file and pay monthly, and smaller employers file quarterly. Both have 30 days after the period.
The annual statement of salaries paid is filed with the tax office by 30 April. From the 2026 finance law it must give each employee's national identification number. Offices on the tax authority's online system take it by teledeclaration.
Which other payroll taxes can an employer owe in Algeria?
A training tax and an apprenticeship tax, each up to 1% of gross payroll for the half-year, on the part that the employer does not spend on training.
The training tax does not apply to employers with fewer than 20 employees.
The base of each tax is gross pay for the half-year, before social security and IRG. The rate is 1% minus the share of payroll spent on continuing training, or on apprenticeship and student placements. The special declaration is due by the 20th of the month after the half-year.
How are end-of-contract payments taxed in Algeria?
The dismissal indemnity is exempt from IRG, and so are travel and mission allowances.
Social security treatment differs between texts, and Teamed confirms which one applies to your payment.
The social security fund's page leaves dismissal compensation outside the contribution base. The 1994 redundancy decree says that indemnities for an economic dismissal carry contributions, except the leave payment. We read both, and we confirm the treatment before the first payroll.
How does Teamed run Algerian payroll?
Where an employer-of-record route is lawful, Teamed runs Algerian payroll each month on one platform.
Each payslip shows the IRG, the employee's 9% and the employer's share.
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.
Run the Employer Cost Calculator to model a payslip before an offer goes out. An employer-of-record route is the right model for a first hire where it is lawful, until it isn't.
Frequently asked questions
What is the income tax rate in Algeria?
A scale from nil to 35% applies to annual taxable income: nil to DZD 240,000, then 23%, 27%, 30%, 33% and 35% above DZD 3,840,000. For wages the tax is worked out monthly and reduced by a 40% abatement of DZD 1,000 to 1,500 a month.
Who pays income tax on wages in Algeria?
The employee owes it, and the employer withholds it from pay and pays it to the tax office in the first 20 days of the following month. Taxable pay up to DZD 30,000 a month is exempt.
What are the Algerian social security rates?
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 be lower than the minimum wage.
When are Algerian payroll filings due?
The tax withheld is due in the first 20 days of the following month. Social security is declared and paid within 30 days after the period, monthly with more than nine workers and quarterly with fewer. The annual salary statement is due by 30 April.
Algeria withholds income tax monthly under a six-band scale, and pay up to DZD 30,000 a month is exempt.
The traps sit in the details: a 40% abatement with a floor and a cap, a base after the employee's 9%, and a yearly statement that now needs the national identification number.
Run the payroll from the contract, not from the headline rate.
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.
