Essential HR, compliance, and hiring insights for expanding your team in Algeria.
Algerian Dinar (DZD)
Algiers
GMT+1
Algeria is the largest country in Africa and a strategic gateway between Europe, Africa, and the Middle East. Known for its vast energy resources, the country is currently diversifying its economy, with a growing emphasis on digital transformation and services. For international companies, Algeria offers a young, highly educated workforce and a competitive cost environment for back-office and IT operations.
Located in North Africa, Algeria has a long Mediterranean coastline to the north and is dominated by the Sahara Desert to the south. It shares borders with Tunisia, Libya, Niger, Mali, Mauritania, and Morocco. The majority of the population and economic activity are concentrated in the fertile coastal regions and the capital city, Algiers.
The northern coastal region enjoys a Mediterranean climate with mild, wet winters and hot, dry summers. As you move south toward the Saharan Atlas and the desert, the climate becomes arid, with extreme temperature fluctuations between day and night. Average summer temperatures in Algiers hover around 30°C (86°F), while winter averages stay near 15°C (59°F).
Algerian culture is a rich tapestry woven from Arab, Berber (Amazigh), and Mediterranean influences. It is a society that deeply values hospitality, family honor, and respect for tradition. In a business context, personal relationships and trust are the foundation of any successful partnership. Professional etiquette often involves a blend of formal French-style administrative traditions and warm local hospitality.
Modern Standard Arabic and Tamazight (Berber) are the official languages. However, Algerian Arabic (Darja) is the daily spoken language. French remains the dominant language of business, administration, and higher education. In the growing tech and global service sectors, English is rapidly gaining ground among the younger professional generation.
The Personal Income Tax (IRG) is a progressive tax withheld by the employer. Rates range from 0% to 35% depending on the salary bracket.
In Algeria, social security (CNAS) is a comprehensive system. Unlike some regions where health insurance is a separate line item, in Algeria, it is integrated into the primary social security contribution.
| Types of Contribution | Contribution rate % (by employer) | Contribution rate % (by employee) |
|---|---|---|
| Social Security (CNAS) | 25% | 9% |
| Health Insurance | Included in CNAS | Included in CNAS |
| National Unemployment Fund (CNAC) | 1% | - |
| Total | 26% | 9% |
*Dates for religious holidays are subject to the lunar calendar and may vary by 1–2 days.
| Occasion | Date (Estimated for 2026) |
|---|---|
| New Year's Day | January 1 |
| Yennayer (Berber New Year) | January 12 |
| Eid al-Fitr (End of Ramadan) | March 20–21* |
| Labor Day | May 1 |
| Eid al-Adha (Feast of Sacrifice) | May 27–28* |
| Islamic New Year (Awal Muharram) | June 16* |
| Ashura | June 25* |
| Independence Day | July 5 |
| Mawlid (Prophet's Birthday) | August 25* |
| Revolution Day | November 1* |
Salaries are paid in Algerian Dinar (DZD) monthly. While contracts for global clients may reference a base in foreign currency, the actual payout must comply with local banking regulations and be executed in the national currency.
Employers are required to maintain accurate records of working hours, overtime, and leave. Timesheets should be updated weekly to ensure compliance with the 40-hour standard work week and to facilitate accurate monthly payroll processing.
Employees are entitled to 30 calendar days of paid leave per year (2.5 days per month worked).
Female employees are entitled to 14 weeks of maternity leave at 100% pay, fully covered by Social Security (CNAS), provided they have met the minimum working hours requirement.
Fathers are entitled to 3 days of paid leave for the birth of a child, which can be taken consecutively or separately within the first 15 days of the birth.
While not as extensively codified as maternity leave, employees who legally adopt a child (under the "Kafala" system) may be granted special leave periods based on the specific company policy or collective agreements, often mirroring the social protections of parental care.
A key difference for Algeria is the work week, which typically runs from Sunday to Thursday. Friday and Saturday are the official weekend days.