Ranked as the 3rd most important economy in the Middle East and North Africa (MENA) region, Algeria is one of the few countries that have managed to achieve 20% poverty alleviation in the past 20 years. The government took important steps to promote the well-being of its people by rolling out social policies keeping up with the United Nations Sustainable Development goals. Among other notable achievements, the country’s oil boom has enabled the government to invest in infrastructure projects, and improve Algeria’s Human Development Indicators.


Currency: Algerian Dinar

Principal Languages: Berber and Algerian Arabic

Government: Presidential System, Semi-presidential System

Capital City: Algiers

Other Major Cities: Oran, Blida, Annaba, Constantine, Djelfa

Employment Contracts

Employment contracts are not required by law, but an implied contract exists if an individual is compensated for work. Contracts can be verbal or written. Fixed-term contracts that are not concluded in writing or do not comply with the law are considered indefinite contracts. Fixed-term contracts must specify the employment duration and the reason for a fixed duration.

According to the Labor Code, contracts can be concluded for a fixed-term in the following conditions:

  • Performance of casual tasks of a discontinuous nature, seasonal work or cases of a temporary increase in workload;
  • Temporary replacement of a worker, and
  • Performing work for a limited time that is temporary in nature.

Employment contracts must state the following information:

  • The location of work;
  • Commencement date;
  • Work hours;
  • Summary of required duties;
  • End date (if fixed term);
  • Length of probation, and
  • Compensation and benefits.

Generally, probationary periods cannot exceed 6 months but can be extended only once for a period not more than half the initial term after an agreement between the employer and the employee. The employment relationship may be terminated during the probationary period without notice or compensation.

Work/Time Regulations

The standard work schedule consists of 8 hours per day and 40 per week. Employees are allowed a full day of rest each week. Work performed beyond 40 hours in a week is considered overtime and must be paid at a minimum rate of 50% above the regular pay rate.

Overtime is allowed in exceptional circumstances, and an employer may ask an employee to perform overtime work no more than 20% above the legal maximum work hours.



Employees are entitled to the following national holidays (the dates of some vary according to the lunar calendar):

  • Jan. 1: New Year's Day
  • May 1: Labor Day
  • July 5: Independence Day
  • Idul Fitr (date varies)
  • Idul Adha (date varies)
  • Awal Muharram (date varies)
  • Ashura (date varies)
  • Nov. 1: Feast of the Revolution
  • Mawlid Ennabaoui (date varies).

Annual Leave
Employees are entitled to annual leave at the rate of 2.5 days for each month of work. Annual leave can’t exceed 30 days in a year. Employees are not allowed to waive their vacation entitlement.

Sick Leave
Employers are required to 50% of salary for the first 15 days of sick leave. The rate increases to 100% in the case of hospitalization or after the 16th day of sickness.

Maternity Leave 
Pregnant employees are allowed to take 14 consecutive weeks’ maternity leave at full pay. Employees must take at least one week’s leave before childbirth. Maternity benefits are paid by social security fund.

 During and for up to 18 months after pregnancy, working women are entitled to one day’s leave each month to receive medical attention and care for the child.

Paternity Leave
Male employees are entitled to 3 days’ paternity leave for the birth of a child.

Other Leaves

Marriage Leave: Employers must give employees 3 days’ paid leave in the event of their marriage. 

Bereavement Leave: Employers must give employees 3 days’ leave to attend the funeral of a family member.


Pension and Social Security
The normal retirement age is 60 for men and 55 for women. Claimants must have worked 15 years to qualify for a full pension. Benefits are based on the employment and the employee's age.

 Workers' Compensation
All salaried employees receive coverage against accidents at work and on the way to and from work. Employees who suffer an accident at work are entitled to reimbursement of the medical, hospital, and surgical care costs. Employees who are not able to work for a certain period due to an accident at work receive compensation for the loss of income.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Algeria and hire their employees without having to establish a branch office or subsidiary in Algeria.

  • Your candidate is hired via our Algeria PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll – all in full compliance with the Algeria laws
  • Global PEO Services experts manage all day-to-day operational issues, such as employee expenses, and severance/termination if required.
  • No contractor risks, pass on the compliance burden to Global PEO Services.

 Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 150+ Countries

  • Empower your teams with 24×7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data

With our Global PEO, you get access to our proprietary Mihi SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are

When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services here.

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