HR & Payroll in Algeria

Good to know

Local Currency: Algerian Dinar (DZD)
Average Salary: DZD 28,500.82 a Year
Tax Year: 1st January – 31st December
Average Working Hours: 40 Hours a Week

About Algeria

Algeria is part of North West Africa with an area of 2,381,741 km². 

A country that enjoys stability and economic independence, by the recovery of national wealth, including hydrocarbons, which seen to be one of the most critical supplies to the world.

Tax benefits, as well as the reduction of social charges and salaries, have made Algeria a destination for industrial investments. This policy has been able to ensure a business upgrade in terms of innovation and the development of human resources.

Algeria offers many benefits for businesses. However, for any business looking to expand to Algeria, it can be a complicated and time-consuming process to keep up with its legislation in matters of HR and payroll. 

Our Algerian Payroll and HR experts will ensure your business is compliant with Algerian legislation and offer you an accurate and efficient service.

Ready to Benefit from Algerian HR & Payroll Experts?

Payroll in Algeria - The Social Security System

The Ministry of Labour, Employment and Social Security is in charge of the following national funds:

  • CNAS: The National Social Insurance Fund for Salaried Workers, which is responsible for the management of benefits in kind and in cash from social insurance, industrial accidents and occupational sickness and family benefits on behalf of the State.
  • CNR: The National Pension Fund, which manages pensions and retirement allowances as well as survivors’ pensions and allowances.
  • CNAC: The National Fund for Unemployment Insurance, which leads unemployment benefits, assistance to companies in difficulty to better carry out dismissal procedures, reintegration assistance, support for the creation of activities for unemployed people over 30 years old.

Social contributions in Algeria

Contributions as of January 1, 2022

Branch Employer Employee Social Welfare Fund Total
Social insurance (illness, maternity, disability and death) 11.5% 1.5% 13%
Workplace accidents and occupational diseases 1.25% 1.25%
Retirement 11% 6.75% 0.50% 18.25%
Early Retirement 0.25% 0.25% 0.50%
Unemployment Insurance 1% 0.50% 1.5%
Total 25% 9 % 0.50% 34.5%

Notes:

  1. Pension contributions to the Fonds National de Péréquation des Oeuvres Sociales (National Fund for the Equalization of Social Works) are meant to finance the activities of the FNPOS. The main mission of the fund is is to work, within the framework of solidarity, to promote social housing and housing assistance for salaried workers.
  2. The CNAC (National Unemployment Insurance Fund) grants reductions in employers’ contributions for any recruitment lasting at least 6 months.
  3. 0.375% is added to the unemployment insurance contributions payable by the employer and the insured if the latter is employed in the construction, public works or hydraulic sectors, the management of which is entrusted to the CACOBATPH (Caisse Nationale des Congés Payés et du Chômage-Intempéries des Secteurs du Bâtiment, des Travaux Publics et de l’Hydraulique)

Source : The Cleiss

The Global Income Tax in Algeria (IGR)

IGR covers only income from industrial, commercial, craft, wage and other pensions. Taxes in Algeria are classified by tax bracket. You will pay a different rate depending on your slice. IGR applies the withholding system which takes the following form:
    • Professional benefits
    • Rental income
    • Agricultural income
    • Salaries and wages
    • Movable capital income
    • Capital gains from the sale of built or undeveloped properties for consideration.
Withholding tax must be paid within the first 20 days after receiving income.

Global Income Tax Rates

Annual progressive scale of the IGR (2022)

Fraction of taxable income Rate (%)
Below 240.000 DA/year 0%
From 240.001 to 480.000 DA/year 23%
From 480.001 to 960.001 DA/year 27%
From 960.001 DA to 1.920.000 DA/year 30%
From 1.920.001 to 3.840.000 DA/year 33%
Above 3.840.001 DA/year 35%

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Algeria.

Our Payroll and HR services in Algeria

HR & Payroll in Algeria

HR & Payroll in Algeria

payroll in algeria

Good to know

Local Currency: Algerian Dinar (DZD)

Average Salary: DZD 28,500.82 a Year

Tax Year: 1st January – 31st December

Average Working Hours: 40 Hours a Week

About Algeria

Algeria is part of North West Africa with an area of 2,381,741 km². 

A country that enjoys stability and economic independence, by the recovery of national wealth, including hydrocarbons, which seen to be one of the most critical supplies to the world.

Tax benefits, as well as the reduction of social charges and salaries, have made Algeria a destination for industrial investments. This policy has been able to ensure a business upgrade in terms of innovation and the development of human resources.

Algeria offers many benefits for businesses. However, for any business looking to expand to Algeria, it can be a complicated and time-consuming process to keep up with its legislation in matters of HR and payroll. 

Our Algerian Payroll and HR experts will ensure your business is compliant with Algerian legislation and offer you an accurate and efficient service.

Ready to Benefit from Algerian HR & Payroll Experts?

Payroll in Algeria - The Social Security System

The Ministry of Labour, Employment and Social Security is in charge of the following national funds:

  • CNAS: The National Social Insurance Fund for Salaried Workers, which is responsible for the management of benefits in kind and in cash from social insurance, industrial accidents and occupational sickness and family benefits on behalf of the State.
  • CNR: The National Pension Fund, which manages pensions and retirement allowances as well as survivors’ pensions and allowances.
  • CNAC: The National Fund for Unemployment Insurance, which leads unemployment benefits, assistance to companies in difficulty to better carry out dismissal procedures, reintegration assistance, support for the creation of activities for unemployed people over 30 years old.

Social contributions in Algeria

Contributions as of January 1, 2022

BranchEmployerEmployeeSocial Welfare FundTotal
Social insurance (illness, maternity, disability and death)11.5%1.5%13%
Workplace accidents and occupational diseases1.25%1.25%
Retirement11%6.75%0.50%18.25%
Early Retirement0.25%0.25%0.50%
Unemployment Insurance1%0.50%1.5%
Total25%9 %0.50%34.5%

Notes:

  1. Pension contributions to the Fonds National de Péréquation des Oeuvres Sociales (National Fund for the Equalization of Social Works) are meant to finance the activities of the FNPOS. The main mission of the fund is is to work, within the framework of solidarity, to promote social housing and housing assistance for salaried workers.
  2. The CNAC (National Unemployment Insurance Fund) grants reductions in employers’ contributions for any recruitment lasting at least 6 months.
  3. 0.375% is added to the unemployment insurance contributions payable by the employer and the insured if the latter is employed in the construction, public works or hydraulic sectors, the management of which is entrusted to the CACOBATPH (Caisse Nationale des Congés Payés et du Chômage-Intempéries des Secteurs du Bâtiment, des Travaux Publics et de l’Hydraulique)

Source : The Cleiss

The Global Income Tax in Algeria (IGR)

IGR covers only income from industrial, commercial, craft, wage and other pensions. Taxes in Algeria are classified by tax bracket. You will pay a different rate depending on your slice.

IGR applies the withholding system which takes the following form:

    • Professional benefits
    • Rental income
    • Agricultural income
    • Salaries and wages
    • Movable capital income
    • Capital gains from the sale of built or undeveloped properties for consideration.
Withholding tax must be paid within the first 20 days after receiving income.

Global Income Tax Rates

Annual progressive scale of the IGR (2022)

Fraction of taxable income Rate (%)
Below 240.000 DA/year 0%
From 240.001 to 480.000 DA/year 23%
From 480.001 to 960.001 DA/year 27%
From 960.001 DA to 1.920.000 DA/year 30%
From 1.920.001 to 3.840.000 DA/year 33%
Above 3.840.001 DA/year 35%

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Algeria.

Our Payroll and HR services in Algeria

Good to know

Local Currency: Algerian Dinar (DZD)
Average Salary: DZD 28,500.82 a Year
Tax Year: 1st January – 31st December
Average Working Hours: 40 Hours a Week

Ready to Benefit from Algerian HR & Payroll Experts?

About Algeria

Algeria is part of North West Africa with an area of 2,381,741 km². 

A country that enjoys stability and economic independence, by the recovery of national wealth, including hydrocarbons, which seen to be one of the most critical supplies to the world.

Tax benefits, as well as the reduction of social charges and salaries, have made Algeria a destination for industrial investments. This policy has been able to ensure a business upgrade in terms of innovation and the development of human resources.

Algeria offers many benefits for businesses. However, for any business looking to expand to Algeria, it can be a complicated and time-consuming process to keep up with its legislation in matters of HR and payroll. 

Our Algerian Payroll and HR experts will ensure your business is compliant with Algerian legislation and offer you an accurate and efficient service.

Payroll in Algeria - The Social Security System

The Ministry of Labour, Employment and Social Security is in charge of the following national funds:

  • CNAS: The National Social Insurance Fund for Salaried Workers, which is responsible for the management of benefits in kind and in cash from social insurance, industrial accidents and occupational sickness and family benefits on behalf of the State.
  • CNR: The National Pension Fund, which manages pensions and retirement allowances as well as survivors’ pensions and allowances.
  • CNAC: The National Fund for Unemployment Insurance, which leads unemployment benefits, assistance to companies in difficulty to better carry out dismissal procedures, reintegration assistance, support for the creation of activities for unemployed people over 30 years old.

Social contributions in Algeria

Contributions as of January 1, 2022

Branch Employer Employee Social Welfare Fund Total
Social insurance (illness, maternity, disability and death) 11.5% 1.5% 13%
Workplace accidents and occupational diseases 1.25% 1.25%
Retirement 11% 6.75% 0.50% 18.25%
Early Retirement 0.25% 0.25% 0.50%
Unemployment Insurance 1% 0.50% 1.5%
Total 25% 9 % 0.50% 34.5%

Notes:

  1. Pension contributions to the Fonds National de Péréquation des Oeuvres Sociales (National Fund for the Equalization of Social Works) are meant to finance the activities of the FNPOS. The main mission of the fund is is to work, within the framework of solidarity, to promote social housing and housing assistance for salaried workers.
  2. The CNAC (National Unemployment Insurance Fund) grants reductions in employers’ contributions for any recruitment lasting at least 6 months.
  3. 0.375% is added to the unemployment insurance contributions payable by the employer and the insured if the latter is employed in the construction, public works or hydraulic sectors, the management of which is entrusted to the CACOBATPH (Caisse Nationale des Congés Payés et du Chômage-Intempéries des Secteurs du Bâtiment, des Travaux Publics et de l’Hydraulique)

Source : The Cleiss

The Global Income Tax in Algeria (IGR)

IGR covers only income from industrial, commercial, craft, wage and other pensions. Taxes in Algeria are classified by tax bracket. You will pay a different rate depending on your slice.

IGR applies the withholding system which takes the following form:

    • Professional benefits
    • Rental income
    • Agricultural income
    • Salaries and wages
    • Movable capital income
    • Capital gains from the sale of built or undeveloped properties for consideration.
Withholding tax must be paid within the first 20 days after receiving income.

Global Income Tax Rates

Annual progressive scale of the IGR (2022)

Fraction of taxable income Rate (%)
Below 240.000 DA/year 0%
From 240.001 to 480.000 DA/year 23%
From 480.001 to 960.001 DA/year 27%
From 960.001 DA to 1.920.000 DA/year 30%
From 1.920.001 to 3.840.000 DA/year 33%
Above 3.840.001 DA/year 35%

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Algeria.

Our Payroll and HR services in Algeria