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If your business is involved in industries like oil and gas, mining, or agriculture, Algeria is rich in natural resources, and hiring locally can provide access to valuable expertise in these sectors.
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Algeria has a relatively large and diverse workforce, with people skilled in various industries, including engineering, healthcare, IT, and more. Hiring locally can help you tap into this talent pool. Hiring local employees means you have individuals who understand the local business regulations, customs, and networks. This can be invaluable in navigating the local business landscape.
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The current minimum wage in Algeria is DZD 20,000.00 per month.
Standard Working Hours
In Algeria, the regular work week is defined by a maximum of 40 hours weekly (8 hours per day, 5 days a week).
The standard work is from Sunday to Thursday, with Friday designated as the obligatory weekly day of rest.
Weekly overtime hours should not exceed 8 hours, and the daily limit is set at 12 hours.
When an employee is required to work extra hours, they have the right to receive overtime compensation, which should be at a minimum of 150% of their regular hourly rate.
The payroll cycle in monthly in Algeria. Employers must pay their employees at least once a month, usually on the last working day.
Paid time off
As per Algerian Labour Law, employees are granted 30 days of paid annual leave accrued throughout 12 months, except for employees working in the southern provinces who are eligible for 40 days of paid annual leave.
The duration of sick leave can vary based on the severity of the condition and the recommendation of a medical professional.
Employees are eligible for 15 days of paid sick leave at half of their salary, which then progresses to full salary from the 16th day of illness onwards or if they are admitted to hospital before the 16th day. Funding for sick pay and the reimbursement of medical expenses is sourced from the National Fund of Social Security, derived from obligatory social contributions paid by both the employer and the employee.
Expectant mothers are eligible for maternity pay equivalent to 100% of their regular salary (calculated based on the average for their role) for up to 14 weeks, and the employee is required to take their leave no later than 1 week before childbirth. To claim these allowances, the assistance of a registered doctor or a qualified expert during childbirth is mandatory.
Father’s have the right to take 3 days paternity leave following the birth of a child.
Termination of Employment
Employers are obligated to inform employees about instances of dismissal due to absence or serious misconduct. Employees can be entitled to severance pay if they have served the company for a minimum of 2 years and if they are dismissed for reasons other than gross misconduct.
During the probationary period, which typically lasts for a specified period, both the employer and the employee have the right to terminate the employment contract without prior notice or compensation.
The legally mandated notice period stands at 6 months (extended to 12 months for skilled employees), with an additional 5 days for each year of service, however this is capped at a maximum of 30 days.
The length of the probationary period can vary depending on the industry, the job position, and the company’s policies, however, the typical probation period in Algeria is 6 months.
A visa is usually necessary for most foreign nationals wishing to enter Algeria, and there are primarily 3 key visa categories: tourist, business, and work. Although Algerian embassies are present in many major global cities, consulates are relatively scarce.
The work visa category is notably intricate, involving requisites from the Algerian Ministry of Labour. These requirements consists the work contract and a work permit. Regrettably, the process of applying for a work visa can often be quite prolonged.
The Standard rate of VAT in Algeria is 19%.