Legal framework and requirements
For diaspora investors or foreign-owned companies, hiring Algerian nationals requires a work permit (autorisation de travail), unless exempt under free-trade agreements (e.g., EU-Algeria partnership). Expatriate hires need a residence permit (carte de séjour) and work authorization from the same ministry. Always verify current exemptions with the Ministry of Labor.
Step 1: Determine eligibility and exemptions
If your business operates under Algerian majority ownership (51%+ local), hiring Algerian citizens is straightforward. For wholly foreign-owned firms, permits are granted case-by-case, with priority given to sectors aligned with Algeria’s economic priorities (e.g., renewable energy, tech).
Step 2: Register with social security (CASNOS)
Practical steps:
– Obtain a social security registration number (numéro de sécurité sociale) for each employee from CASNOS.
– Submit payroll data monthly via the CASNOS online portal or in person at local branches.
– Late or incorrect filings trigger penalties (fees vary; confirm with CASNOS).
Pitfall: CASNOS audits are common. Keep digital and physical records for 5 years.
Step 3: Obtain work permits (if hiring foreigners)
Processing time: Typically 3–6 months, but urgent cases (e.g., expats in critical roles) may be fast-tracked. Fees depend on salary level and sector.
Pitfall: Fake or incomplete applications lead to permanent rejection. Use a legal advisor to draft the labor market test report.
Step 4: Draft and sign employment contracts
Foreign contracts must comply with Algerian law, even if governed by international conventions. Use a notary (notaire) to authenticate the document if required.
Pitfall: Verbal agreements are unenforceable. Missing clauses (e.g., overtime pay) can lead to disputes.
Step 5: Register with the tax authority (DGI)
Practical steps:
– File monthly payroll tax declarations (déclaration mensuelle de paie).
– Issue salary slips (fiches de paie) to employees, including tax deductions.
– Submit annual tax returns by March 31.
Pitfall: Late filings incur penalties of 5–10% of unpaid taxes.
Step 6: Handle payroll and compliance
Key compliance tasks:
– Minimum wage: Currently DZD 25,000/month (2024 rate; confirm with ONEM).
– Working hours: Max 40 hours/week (8-hour days, 5-day workweek). Exceptions require ministry approval.
– Annual leave: 24 days after 1 year, increasing by 1 day/year (max 30 days).
Pitfall: Unpaid bonuses or late salary transfers can trigger labor inspections and fines.
Step 7: Labor inspections and disputes
Resolution process:
1. Inspectors issue a preliminary report (procès-verbal).
2. Employers have 15 days to respond.
3. Penalties range from DZD 50,000–500,000 for violations, plus back pay.
Pitfall: Ignoring an inspection can lead to temporary closure or fines up to 10% of payroll.
FAQ
2. How long does a work permit take for foreign hires?
Processing varies by sector and urgency. Routine cases take 3–6 months; critical roles (e.g., IT specialists, engineers) may be approved in 4–8 weeks if documents are complete. Rush fees may apply.
3. What happens if an employee quits without notice?
Algerian law requires written notice. If an employee leaves without it, the employer can withhold salary until the notice period is served or claim compensation (up to 1 month’s salary).
What to do next
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.