How much does it cost to employ someone in Algeria?

On top of gross salary, employers pay about 25.5% in social security contributions to CNAS. That covers health, pension, work injury, unemployment, and the social works fund. Employees contribute 9%, which is withheld through payroll. Construction and public works employers pay a small unemployment surcharge on top.

What is the minimum wage in Algeria in 2026?

The national guaranteed minimum wage (SNMG) rose to DZD 24,000 per month on 1 January 2026, up from DZD 20,000. The increase was set by Presidential Decree 26-01 and applies retroactively from January. Check every full-time offer against this floor before you sign.

How does Good Balance Global hire employees in Algeria?

As your Employer of Record (EOR), we become the legal employer in Algeria. We issue a contract under local labor law, register the employee with CNAS, run monthly payroll, and withhold income tax and social security. You direct the day-to-day work, and we help you stay compliant.

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Payroll and benefits guide

Algeria

CapitalAlgiers

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyDZD (Algerian Dinar)

Payroll FrequencyMonthly

Employer Taxes25.5%

Employee Costs9%

Overview

Languages: Arabic, Berber
Income tax: 0% – 35%
VAT: 19%; Reduced rates: 9% on certain goods and services listed in the Turnover Tax Code. Supplies for petroleum activities and some cultural and social activities are exempt

Contributions

Employer

11.5%

Health, maternity, disability, and death insurance

11%

Retirement pension

1.25%

Work accidents and occupational diseases

Unemployment insuranceConstruction, public works, and hydraulics add 0.375%

0.25%

Early retirement

0.5%

Social works fund (FOS)

25.5%

Total employer cost

Employee

6.75%

Retirement pension

1.5%

Health, maternity, disability, and death insurance

0.5%

Unemployment insuranceConstruction, public works, and hydraulics add 0.375%

0.25%

Early retirement

Total employee cost

Minimum Wage & Working Hours

Minimum wage: DZD 24,000 / Monthly; National guaranteed minimum wage (SNMG), effective 1 January 2026 under Presidential Decree 26-01
Standard working hours: 40 hours per week

Leave

Annual leave30 calendar days per yearAccrues at 2.5 days per month worked
Maternity leave14 weeks6 weeks before and 8 weeks after the expected birth date; paid at 100% of net daily wage by social insurance
Sick leaveUp to 3 yearsCNAS daily allowance: 50% of net daily wage for days 1–15, then 100%; 100% from day 1 for hospitalization or long-term illness

Leave type	Duration	Notes
Annual leave	30 calendar days per year	Accrues at 2.5 days per month worked
Maternity leave	14 weeks	6 weeks before and 8 weeks after the expected birth date; paid at 100% of net daily wage by social insurance
Sick leave	Up to 3 years	CNAS daily allowance: 50% of net daily wage for days 1–15, then 100%; 100% from day 1 for hospitalization or long-term illness

Benefits

Social security (CNAS)Mandatory
Health, maternity, pension, work-injury, and unemployment cover
Family allowancesMandatory
Monthly child allowances funded by the state budget

Visas & Work Permits

Work permit
Duration
Tied to the length of the assignment or employment contract; renewable
Requirements
Local employment contract with an Algerian host entity registered to receive foreign workers, plus prior approval in principle from the labor authorities
A short-term permit for work under 90 days exists, but in practice it follows the same steps and timeline as the standard permit

FAQ

Sources

Last updated: November 1, 2026

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