Establishing and maintaining an Algeria payroll
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 many opportunities in Algeria for business growth.
One important element of this kind of foreign expansion is hiring locally, and this means setting up an Algeria payroll outsourcing system. Establishing an Algeria payroll involves following a complex set of unique and frequently changing employment laws, which can be a lengthy and difficult process.
At Horizons, we specialize in providing Algeria payroll outsourcing support services, offering organizations a way to outsource the time-consuming process of setting up a payroll and hiring employees. We offer flexible service packages to simplify your expansion, whether or not you already have an Algerian entity.
If you have an entity in Algeria
For businesses that have already registered an official entity in Algeria, we offer a comprehensive and tailored Algeria payroll outsourcing service. Our expert team will set up and manage your payroll, also handling all of your associated administration, HR, and compliance with local laws.
This level of outsourcing is ideally suited to larger organizations and those expanding into Algeria in the long-term.
If you don’t have an entity in Algeria
If your business has not registered an official entity in the country, then you have the option of hiring through our Algerian subsidiary. We can act as employer of record in the country, set up and manage your payroll, and handle associated HR, administration, and compliance.
This solution provides a low-risk, scalable, and flexible route into the Algeria payroll marketplace so you can access all of the benefits of employing locally without any of the hassle.
Build your business in Algeria with help from Horizons
Algeria payroll guide
What withholdings and taxes are required 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.
Entitlements and terminations
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.
How to establish an Algeria payroll outsourcing system
If you want to hire and set up a payroll in Algeria, we recommend establishing an Algerian entity first. However, tackling this independently can be complicated, possibly leading to delays and impacting your profits.
Alternatively, you can choose to hand over your Algeria payroll outsourcing to Horizons. We provide the use of our Algerian subsidiary to act as employer of record for your Algerian workforce, so you won’t have to go through the complex process yourself and can benefit from our outsourcing services even without a registered entity in Algeria. Additionally, we can build your Algeria payroll system and manage your HR, compliance, and any other associated administration, enabling you to work on successfully expanding your businesses in Algeria.