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Hire in 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 Algeria Professional Employer Organization (Algeria PEO), enables you to hire in Algeria as cost-effectively as possible. 

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

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
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.

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