Algeria PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Algeria without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Algeria, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Algeria labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Algeria. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Algeria - Country Overview
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.
Berber and Algerian Arabic
Presidential System, Semi-presidential System
Oran, Blida, Annaba, Constantine, Djelfa
Employment Contracts in Algeria
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.
Working Hours in Algeria
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.
Employee Leave in Algeria
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).
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.
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.
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.
Male employees are entitled to 3 days’ paternity leave for the birth of a child.
Employers must give employees 3 days’ paid leave in the event of their marriage.
Employers must give employees 3 days’ leave to attend the funeral of a family member.
Employee Benefits in Algeria
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.
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.