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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Payroll in Algeria
EOR in Algeria
PEO in Algeria

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Mercans offers complete payroll, PEO and HR services in Algeria

Algeria is the largest country in Africa, the Arab world and the Mediterranean Basin and the tenth largest country in the world. The country continues to pursue economic diversification alongside its established hydrocarbons sector, with growing policy focus on industry, mining, logistics, digitalization and investment facilitation. For foreign investors, Algeria offers a large domestic market, strategic access to Africa and the Mediterranean, and an investment framework supported by the Algerian Investment Promotion Agency (AAPI).

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Doing Business in Algeria

Investment promotion in Algeria is currently supported by the Algerian Investment Promotion Agency (AAPI). While Algeria continues to modernize its business environment and digitalize certain investor processes, employers and investors should still plan carefully for local registration, banking, immigration, language, and labor compliance requirements.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Algeria requires selecting an appropriate legal form and completing local incorporation, registration, tax, labor and social security formalities in line with Algerian law.

Banking

Banking hours vary by institution and branch. Local confirmation is recommended before scheduling payroll or treasury activities.

Working Week

The legal weekly working time is 44 hours. In many workplaces, the business week commonly runs from Sunday to Thursday, with Friday as the normal weekly rest day.

Labor law

The principal piece of legislation is Law No. 90-11 of 21 April 1990 relating to employment relations, as amended and supplemented, together with other laws and regulations governing working time, social security, foreign workers and collective labor relations.

Main Industries

Petroleum and natural gas, mining, manufacturing, construction materials, food processing, petrochemicals

GDP Growth

3.8% (2025 est.)

Dates & Numbers

dd/mm/yyyy

Official State Name

People’s Democratic Republic of Algeria

Population

46.81 million (2024)

Capital

Algiers

Major Languages

Arabic and Tamazight

Currency

Algerian Dinar (DZD)

Internet Domain

.dz

International Dialing Code

+213

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Algeria
Algiers, DZ
9:03 pm, May 12, 2026
19°C
scattered clouds
52 %
Wind Gust: 0 mph
Clouds: 40%
Sunrise: 5:43 am
Sunset: 7:45 pm

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Payroll in Algeria

Mercans is a top global provider of payroll services in Algeria, aiding companies operating in the country to fulfill their payroll requirements for both local employees and expatriates. Through our Algeria payroll solutions, we strive to be your single source for end-to-end global payroll. We will take care of payroll processing, statutory calculations, reporting support, and payroll compliance administration so that you can focus on more important priorities.

The experience and advanced technology we bring to the table help us deliver superior payroll services in Algeria and around the globe. We offer a wide range of industry-leading payroll solutions designed to simplify complex payroll and HR processes while helping employers stay aligned with local employment, tax and social security requirements.

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Payroll

Employees may only be required to work overtime by their employer within the limits permitted by law. In Algeria, overtime may not exceed 20% of the legal working time and must be paid at a premium of at least 50% of the normal hourly wage. Night work is defined as work performed between 9:00 pm and 5:00 am, and female night work remains subject to specific rules and possible exemptions granted by the competent labor inspectorate.

Electronic payslips may be used where employees can access and retain the payroll information provided

Payslip

Payroll and employment records should be retained in line with applicable labor, tax and social security requirements

Reports

Employees receive paid annual leave of 30 calendar days, with additional leave for certain southern regions

Annual Leave

Sick leave benefits are generally paid through social security, subject to medical certification and eligibility rules

Sick Leave

98 days of paid maternity leave are provided under current legislation; birth-related special leave may also apply

Maternity

Notice periods are generally determined by collective agreements or internal regulations, except in cases of serious misconduct

Employee Termination

Employee social security contributions are generally 9% of gross salary

Employee Deduction

24,000 DZD gross per month from 1 January 2026

Minimum Wage

Any work exceeding the legal working time is compensated at a premium of at least 50%

Overtime

Final pay should include all earned salary and accrued entitlements due at termination, subject to the employment terms and applicable law

Final Pay




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Employer of Record (EOR) in Algeria

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Mercans’ comprehensive employer of record (EOR) services in Algeria offer businesses a flexible and compliant solution to manage HR, payroll, onboarding and local employment obligations while focusing on core operations.

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Our EOR in Algeria allows you to hire and build a strong local team without setting up a legal entity, subject to role, immigration and local compliance considerations.

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You can count on us as your dedicated EOR provider in Algeria to support compliant contracts, payroll administration, statutory processes and workforce expansion.

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PEO in Algeria

Mercans’ Professional Employer Organization (PEO) services in Algeria provide businesses with a simplified approach to manage their HR and payroll requirements, allowing them to expand into the country with greater confidence. As a PEO in Algeria, we offer a tailored and seamless solution for companies expanding into Algeria, handling HR-related needs from employment administration to payroll, benefits and compliance.
Mercans’ specialized team of experts and deep understanding of the Algerian market make it a trusted partner for business growth in the country.

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Tax and Social Security

Individuals may be subject to tax on worldwide income if they are Algerian tax residents and on Algerian-source income if they are non-residents. Employees are generally covered by the national social security system, and for salaried employees the standard social security contribution split remains 26% employer and 9% employee.

Tax

Corporate entities operating in Algeria may be subject to different corporate income tax rates depending on the activity performed. The standard VAT rate is 19%, with a reduced 9% rate applying to certain goods and services. Personal income tax is levied on a progressive scale with a top marginal rate of 35%.

≤ 26%

Corporate Income Tax

35%

Personal Income Tax

19%

Sales Tax

19%

VAT

Social Security

There are four national funds, including CNAS for salaried workers, CNR for pensions, the unemployment insurance fund, and CASNOS for non-salaried workers. For salaried employees, the standard combined social security contribution rate is 35%, split between 26% for employers and 9% for employees.

35%

Social Security Rate

26%

Social Security Rate for Employers

9%

Social Security Rate for Employees

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Employment Law

Employment relationships in Algeria are governed primarily by Law No. 90-11 of 21 April 1990 relating to employment relations, as amended, together with legislation covering legal working time, social security, workplace health and safety, and the employment of foreign nationals. Employers should also review any applicable collective agreements and internal workplace regulations.

Employment Agreement

Employment contracts may be indefinite or fixed-term in the cases permitted by law. During the probation period, the employee has the same rights and obligations as other workers in similar roles, and the employment relationship may be ended by either party without notice or indemnity during that probation period.

Working condition

The legal working time is 44 hours per week in normal conditions of work. Employees are entitled to a full weekly rest day, with Friday being the normal weekly rest day under ordinary working conditions. Overtime is permitted within statutory limits and must be paid at a premium of at least 50% of the normal hourly wage.

Leaves

Algerian labor law provides a minimum entitlement of 30 calendar days of paid annual leave per year of work, with at least 10 additional days for qualifying southern regions. Sick leave and maternity-related cash benefits are generally administered through the social security framework, subject to applicable medical and administrative requirements.

Employment termination

Termination of employment is regulated by Algerian law. Indefinite-term contracts generally require a valid reason and compliance with the applicable legal or collectively agreed procedure. In cases of dismissal, minimum notice is generally determined by collective agreements or internal regulations, and dismissals carried out in breach of mandatory procedure may be challenged before the court.

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As per regulations

Minimum notice period for terminating an employee

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12

Total number of public holidays

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44

Working hours per week

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3 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

Travel to Algeria generally requires an appropriate visa unless an exemption applies. Algeria issues several visa categories, including business and work visas. For foreign employees, the employer must also comply with the work authorization process administered by the competent labor authorities.

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Residency permits

A foreign national working in Algeria will generally need a valid entry visa where required, a work permit or temporary work authorization where applicable, and a residence card. The residence card for foreign nationals is generally valid for two years, although the validity may correspond to the validity of the document authorizing the foreign national’s stay in Algeria.

Work Permit validity

Up to 2 years, aligned with the fixed-term employment contract and subject to renewal

Required Documents

An original passport valid for the required period and, where applicable, containing the appropriate entry visa

A completed and signed visa or residence application form, as applicable

Recent passport-sized photographs

Supporting documents for the purpose of stay, such as an invitation letter, employment contract or host documentation, as applicable

Work authorization documents where the foreign national will perform salaried work in Algeria

Proof of accommodation or residence in Algeria

Applicable fees and any additional documents requested by the relevant Algerian authority or consular post

Compliant, reliable, error-free and touchless payroll in Algeria

Build the best team and hire top talent compliantly in Algeria. Get in touch with Algeria payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Algeria and how does it work?

    An Employer of Record (EOR) in Algeria legally employs staff on behalf of foreign companies. It manages contracts, payroll, taxes, social security, and labor law compliance, allowing companies to hire employees quickly without a local legal entity.

    Why should companies use an Employer of Record instead of setting up a legal entity in Algeria?

    Using an EOR avoids the time and costs of establishing a local company. It provides fast market entry, reduces administrative work, ensures legal and tax compliance, and is ideal for businesses testing the Algerian market or hiring a small team.

    How does payroll outsourcing in Algeria help with compliance and tax regulations?

    Payroll outsourcing ensures accurate salary processing, tax filings, and social security contributions according to Algerian law. It reduces compliance risks, avoids penalties, and provides expertise on local labor and tax regulations.

    Can an Employer of Record in Algeria hire employees on behalf of foreign companies?

    Yes, an EOR can legally hire employees for foreign companies, managing HR operations, payroll, and compliance with local labor laws, enabling smooth operations without a local entity.

    What are the key benefits of using payroll and EOR services in Algeria for global expansion?

    EOR and payroll services enable faster hiring, local compliance, reduced legal and financial risk, and access to market expertise. They allow companies to expand globally efficiently while focusing on business growth.

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