Algeria Payroll Guide
HR & Payroll in Algeria
Good to know
- Local currency: Algerian Dinar (DZD)
- Minimum Salary: DZD 24000 a Month
- Tax year: 1st January – 31st December Average Working Hours: 40 Hours a Week
About Algeria
Algeria is part of Northwest 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.
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
| 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% |
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.
The CNAC (National Unemployment Insurance Fund) grants reductions in employers’ contributions for any recruitment lasting at least 6 months.
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
| 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
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
- Button: I am ready for my Algerian HR & Payroll expert