Country guide · 8 min read · Updated October 2026
Payroll in Algeria: the month, the calendar and a salary worked through
How a payroll month runs in Algeria: the deadlines, social security branch by branch, a salary worked through, income tax, overtime, the year's holidays, and how your people there can be paid every month now.
How does payroll work in Algeria?
Wages are paid at the end of each pay period. CNAS contributions are due within 30 days of the month's end, or of the quarter's for a small employer. They are 25% from the employer, 9% from the employee and 0.5% from the employer's social-works fund, for every nationality. IRG is withheld each month on a scale from 0% to 35%. Payroll opens in Algeria when a client needs it.
Know the month's deadlines
Seven deadlines shape a payroll in Algeria. Each one is the employer's to meet.
| Deadline | What is due |
|---|---|
| At the end of each pay period | Wages, paid regularly, with a payslip |
| Within 10 days of hiring | Applying to affiliate the employee with the CNAS |
| Within the first 20 days of the next month | The income tax withheld, to the tax office |
| Within 30 days of the month's end | CNAS contributions, both shares, for an employer with 10 or more workers. An employer with fewer pays within 30 days of each quarter's end |
| Within 30 days of the year's end | The year's declaration of wages, employee by employee, to the CNAS |
| By the 20th of the month after each half-year | The vocational training and apprenticeship taxes, with a special declaration, even when nothing is due |
| By the 30th of April | The statement of each employee's pay and income tax for the year before, to the tax office |
Contributions paid late carry a surcharge of 5%. Each further month late adds 1%.
Follow one salary through the month
Take a salary of DZD 120,000 a month, all of it taxable. Here is the same salary for an Algerian national and for an expatriate.
| An Algerian national | An expatriate | |
|---|---|---|
| Gross pay | DZD 120,000 | DZD 120,000 |
| Social security, from the employee | DZD 10,800 | DZD 10,800 |
| Income tax | DZD 22,660 | DZD 22,660 |
| Net pay | DZD 86,540 | DZD 86,540 |
| Social security, from the employer | DZD 30,000 | DZD 30,000 |
| From the employer's social-works fund | DZD 600 | DZD 600 |
| End of service, built up each month | Nothing: the law sets none | Nothing: the law sets none |
| The employer's cost for the month | DZD 150,600 | DZD 150,600 |
The two columns match, because social security and income tax apply to both in the same way. The training taxes are left out, since they are worked out on each half-year's payroll.
The employer withholds income tax on the month's pay after the employee's social security, on a twelfth of each annual band.
| Each month | |
|---|---|
| Gross pay | DZD 120,000 |
| Less the employee's social security | DZD 10,800 |
| Taxable pay | DZD 109,200 |
| 23% of the pay from DZD 20,000 to DZD 40,000 | DZD 4,600 |
| 27% of the pay from DZD 40,000 to DZD 80,000 | DZD 10,800 |
| 30% of the pay above DZD 80,000 | DZD 8,760 |
| Tax on the scale | DZD 24,160 |
| Less the abatement of 40%, at most DZD 1,500 | DZD 1,500 |
| Income tax withheld | DZD 22,660 |
The abatement at 40% would be DZD 9,664, so the monthly cap of DZD 1,500 applies.
Work out income tax band by band
Income tax is set on a year's taxable income, on this scale.
| Taxable income a year | Rate |
|---|---|
| Up to DZD 240,000 | 0% |
| From DZD 240,000 to DZD 480,000 | 23% |
| From DZD 480,000 to DZD 960,000 | 27% |
| From DZD 960,000 to DZD 1,920,000 | 30% |
| From DZD 1,920,000 to DZD 3,840,000 | 33% |
| Above DZD 3,840,000 | 35% |
On a salary, the employer withholds the tax each month, on a twelfth of each band. Taxable pay is gross pay less the employee's social security contributions.
The tax on a salary is then reduced by an abatement of 40%. It is at least DZD 1,000 and at most DZD 1,500 a month.
Monthly pay up to DZD 30,000 is exempt. Pay above that and below DZD 35,000 gets a second abatement, by a formula the law sets.
A bonus or other pay that is not monthly is taxed as a month of its own, at 10%.
The tax withheld is paid within the first 20 days of the next month. The payslip shows the tax withheld, or that none was.
Pay overtime at the right rate
| What it earns | |
|---|---|
| Overtime | At least 50% on top of the normal hourly wage |
| Work on the weekly rest day or a public holiday | A rest of the same length, plus the overtime premium |
| Night work, from 21:00 to 05:00 | As the collective agreement sets |
The legal week is 40 hours, over at least five days. Friday is the weekly rest day.
Overtime is for a pressing need of the service, and exceptional. It may not pass 20% of the legal working time. The limit can be passed, on terms the collective agreement sets, to prevent or repair an accident, or to finish work that would cause damage if stopped.
A day's actual work may not span more than 12 hours.
Mark the year's public holidays
| Holiday | Days |
|---|---|
| New Year's Day | One, the 1st of January |
| Yennayer, the Amazigh New Year | One, the 12th of January |
| Labour Day | One, the 1st of May |
| Independence Day | One, the 5th of July |
| Revolution Day | One, the 1st of November |
| Islamic New Year | One |
| Ashura | One |
| The Prophet's Birthday | One |
| Eid al-Fitr | Three |
| Eid al-Adha | Three |
Each holiday is a paid day off, for staff paid by the hour or the day too. The Islamic holidays follow the moon, so their dates move each year. Staff of the Christian and Jewish faiths also have their own feast days off, as the law lists them.
Work on a public holiday earns a rest of the same length and the overtime premium.
Keep pay above the floor, and paid the way the law sets
| The rule | |
|---|---|
| Minimum wage | DZD 24,000 a month for the legal week of 40 hours, or DZD 138.46 an hour, from 1 January 2026 |
| How pay is paid | In money alone, never in kind. Wages are paid in dinars |
| When | Regularly, at the end of each pay period |
| The payslip | Names every element of pay and its amount |
| Priority | Wages are paid before every other debt, the Treasury's and social security's included |
| End of service | Set by a collective agreement, where there is one. The law sets none |
See what has changed
| When | What changes |
|---|---|
| July 2025 | Maternity leave is 150 consecutive days, paid by the CNAS at 100% of the daily wage after social security and tax |
| 1 January 2026 | The minimum wage is DZD 24,000 a month |
| 2026 | The training taxes are worked out on each half-year's payroll, and paid by the 20th of the month after the half-year |
Payroll opens in Algeria when a client needs it
Payroll opens in Algeria when a client needs it.
When it opens, it will work as our payroll does in the Gulf and Egypt, from one record. Your entity will submit the files and pay its people.
It will go live only after two months side by side with your current provider, once the numbers match.
Have your people in Algeria paid every month, now
PEO, part of Global Kinect EOR, pays your people in Algeria every month in dinars, with benefits and compliance handled.
Hiring in Algeria without an entity of your own is Global Kinect EOR.
Common questions.
When are social security contributions due in Algeria?
Do expatriates pay social security in Algeria?
Can Global Kinect run our payroll in Algeria?
Need your people in Algeria paid every month?
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