Expand your organization into Algeria - without an entity
The North African nation of Algeria is an important regional power. While the country has struggled economically to live up to its potential in the last few decades, there are a huge number of opportunities in Algeria, and many businesses are recognizing the chance to grow there.
If your organization is planning an expansion into Algeria, it is important to understand that bureaucracy can cause progress to be slow when trying to establish your business there. If you are unfamiliar with the local customs, procedures, and language, you may encounter delays, which could cause costs to spiral and cut into your profit potential.
At Horizons, our experienced expansion team helps businesses expand into Algeria, as well as within Africa generally. Our tailored professional employer organization (Algeria PEO), employer of record, and payroll services can provide you with all the support you need to efficiently expand your business into Algeria, whether or not you have already established an Algerian entity.
Additionally, our dedicated in-house recruitment team can find, hire, and onboard your new employees in Algeria, as well as manage any ongoing HR and compliance administration. Our dedicated team will provide everything you need to expand into Algeria as efficiently as possible and could drastically cut your expansion costs.
Our Algeria PEO simplifies your expansion
Horizons enables your business to expand its operations into Algeria, without setting up a legal subsidiary.
Rapid Market Entry
Horizons will enable you to source, hire, and onboard professionals across Algeria in as little as 48 hours.
Cost-Effective Expansion
Our Algeria PEO solution can help you benefit from cost savings of up to 85%, without the need to establish an Algerian entity.
Payroll Services
Simplified Algerian salary & payroll processing, including social security payments, tax, and any other required contributions.
Employee Onboarding
Utilize the relevant provision for all types of Algerian labor contracts, whether a fixed-term or open-ended contract.
Onsite Legal & HR Team
Full support for Algeria-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.
Ensure Full Compliance
We ensure that employment contracts are fully compliant and adhere to Algeria labor laws and best practices.
Hiring in Algeria: Employment law overview
📝 Employment contracts in Algeria
While it is technically possible to enter into a verbal contract in Algeria, we strongly recommend producing a formal written employment contract when hiring your workforce. The local language of Arabic should be used, and any references to money should be in the Algerian dinar. The contracts should include any relevant details of the employment agreement, such as compensation, vacation allowance, and more.
By partnering with our Algeria PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
⏰ Working hours in Algeria
Normal working hours in Algeria 40 hours from Sunday to Thursday, with Friday and Saturday as days of rest. If employees work over their normal hours by at least 20%, then they are entitled to 150% of normal pay.
📅 Public holidays in Algeria
Date | Description | 1 Jan | New Year |
|---|---|
12 Jan | Berber New Year |
20 Mar | March Equinox |
1 May | May Day |
24 May | Eid al-Fitr |
25 May | Eid al-Fitr Holiday |
20 Jun | June Solstice |
5 Jul | Independence Day |
31 Jul | Eid al-Adha |
1 Aug | Eid al-Adha Holiday |
20 Aug | Muharram |
29 Aug | Day of Achura |
22 Sep | September Equinox |
29 Oct | The Prophet’s Birthday (Tentative Date) |
1 Nov | Anniversary of the Revolution |
21 Dec | December Solstice |
🏖 Algeria vacation leave
Employees in Algeria generally accumulate 2.5 days of paid vacation leave per month of work, up to 30 days per year.
😷 Algeria sick leave
Employers in Algeria usually need to pay employees who are absent from work starting from their first day of leave. Up to 15 days are paid at 50% of normal salary, then at 100% for longer sicknesses or those requiring hospitalization.
👶 Parental leave in Algeria
Female employees in Algeria are entitled to 14 weeks of paid maternity leave. Male employees can take three days of paternity leave.
💰 Terminations and severance in Algeria
Employees in Algeria are generally entitled to five days of notice per year with an employer upon termination, with an upper limit of 30 days.
Workers in their probation period are not entitled to this notice period, which can be six to 12 months long depending on the role.
Employees are also usually entitled to severance pay equivalent to 15 days of pay for every year with an employer above two years, with an upper limit of three months.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Algeria PEO can mitigate risk for foreign companies and provide guidance through this process.
🏦 Taxation in Algeria
Employees in Algeria are taxed progressively on their incomes, with rates ranging from 0% to 35% depending on income level.
The corporate tax rate in Algeria is different for different types of companies, but for those engaged in mixed activities, the maximum rate is 26% of taxable profits.
🏥 Health coverage in Algeria
Public healthcare in Algeria is funded via tax, but many employers do choose to offer private medical insurance to employees as part of their benefits packages.
💳 Algeria compensations & benefits
Compensation laws in Algeria
In mid-2020, the minimum wage in Algeria was raised to 20,000 dinars per month.
Benefit management in Algeria
Employees in Algeria often expect benefits packages as part of their employment agreements, so you may need to set up a benefits management system when hiring in the country. But setting up and managing a benefits system in Algeria can be complicated, particularly if you are unfamiliar with the country’s unique regulations and procedures.
Horizons can help to significantly simplify this step of your Algeria expansion by providing benefit management outsourcing. Our team can advise you and handle the setup of your benefit scheme, enabling you to focus on expanding your organization with our Algeria PEO.
Request a Proposal
Horizons will simplify your expansion through our Algeria PEO
At Horizons, we specialize in providing tailored Algeria employer of record, Algeria PEO, and payroll outsourcing services to give businesses everything they need to begin trading in Algeria as efficiently as possible. Our experts will ensure that you are ready to start trading and hiring in Algeria in as little as 48 hours and could save you more than 80% in expenditure, whether or not you’ve already registered a legal entity in the country.
Our team will handle all of your expenses, payroll, legal compliance, and more in Algeria, as well as any ongoing human resources work. And as the only global PEO with a dedicated in-house recruitment team, we can also find and hire your local workforce in Algeria, using our Algerian subsidiary as employer of record for your employees so you don’t even need to register an Algerian entity.
Talk to our Algeria experts today to find out how our custom outsourcing services can help you to seamlessly expand into Algeria.
