Algeria is located in the northern part of Africa along the shores of the Mediterranean Sea. Algeria has a well-developed economy whose major economic driver is the oil & gas industry. Major cities, like Algiers, also have developing industries for young and senior professionals. Most employees who are not originally from Algeria will need a work visa, which gives foreign nationals the ability to work there long-term. If your employees will work only for you and for less than 90 days, they can apply for a temporary work visa instead.
The minimum wage in Algeria is 20,000 DZD per month. The standard work week is 40 hours per week (8 hours a day, 5 days a week). The working week in Algeria typically goes from Sunday to Thursday, as Friday is a day of rest instead of Sunday.
All work done in addition to standard working hours is to be paid as overtime (regulated by the employment contract). Overtime hours are capped at 8 hours per week, with no more than 12 hours worked per day. If an employee is required to work overtime hours they are entitled to overtime pay of 150% of the normal rate.
Every employee is required to receive statutory benefits as part of your Algeria benefits management plan, or you’ll risk being found noncompliant.
Pregnant employees are entitled to a maximum of 14 weeks of fully paid maternity leave, and they must stop working at least 1 week before the birth. Fathers are entitled to three days of paid paternity leave for the birth.
Employees in Algeria are entitled to 15 days of paid sick leave at half salary, and then full salary after the 16th day of sickness or if the employee is admitted to a hospital prior to the 16th day.
Sick pay and medical expense reimbursement is funded by the National Fund of Social Security, based on the social contributions paid by the employer and the employee.
There are 9 public holidays in Algeria. According to Algerian Labor Law, employees are entitled to 30 days paid annual leave accumulated over 12 months, (with the exception of employees in the Southern provinces, where they are entitled to 40 days paid annual leave).
Employees are also entitled to 3 days of leave in the event of any of the following: marriage, childbirth, marriage of a child or dependent, death of a first-degree relative or spouse. Employees can also take 30 days of paid leave once during the course of their career to undertake a Hajj pilgrimage.
Employment contracts can be terminated for redundancy or misconduct, and if its misconduct then disciplinary options must be considered before an employee is officially let go. Under Algerian law, terminating an employee without trying to first take disciplinary action would constitute an unfair dismissal and make you liable to pay them severance compensation.
Notice periods in Algeria are structured based on an employee’s skill level and tenure at the company. The notice period should be at least 6 months (up to 12 months for skilled employees or managerial staff), plus 5 days for each year of service at the company (up to 30 days).
Employees in Algeria are entitled to a severance package if they are dismissed without notice or due to liquidation/redundancy. The basic severance pay is equal to one month’s pay, and employees let go due to redundancy or a liquidation must be paid their salaries for two months, or until they find new employment.
The minimum age for employment in Algeria is 16 years, and there is no statutory requirement to provide a 13th salary in Algeria.
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.