Employer of Record in Algeria
Algeria is now the 4th largest economy on the African continent in terms of GDP, and boasts a host of commercial advantages that the local government has been trying to facilitate for several years.
However, hiring a local employee is not easy and can be a long and complex process. The country has a large number of procedures and suffers from a certain amount of bureaucracy, which could delay your development in the country.
If you choose to set up a local structure, you need to be aware of the conditions for doing so, which were tightened following the 2020 Finance Act, in particular the “51/49 rule”. The latter concerns strategic sectors (energy and mining, pharmaceuticals and transport). It limits foreign investors to holding only 49% of the capital of a company incorporated under Algerian law. This rule applies regardless of the sector. As a result, wage portage offers a secure alternative for getting round these regulations and expanding into this market without the constraints of creating a legal entity majority-owned by a local shareholder.
The advantages of Employer of Record in Algeria
There are many advantages to wage portage in Algeria.
- You will hand over the management and administrative issues relating to compliance with employment laws and regulations. As a result, your development in this market is faster, more comfortable and safer.
- A local presence at a lower cost, without having to invest in the creation and management of a local legal entity.
- You guarantee to comply fully with all applicable local regulations and any amendments thereto. This means you reduce the risks involved in developing your business in Algeria.
- Wage portage is a relatively straightforward solution, as opposed to setting up a subsidiary, for example. This is a good way of assessing the relevance of the Algerian market to your business without committing significant resources. You can then decide to make your local presence permanent.
- Genuine proof of credibility: your local presence reassures your customers, who can contact your team at any time.
- The overall management of your human resources is simplified, so you can concentrate on your core business and your commercial objectives.
- The implementation of law number 18-07 of 10 June 2018, which concerns the preservation of individuals’ rights when their personal data is processed, will take effect before the end of August 2023. With regard to compliance, companies operating in the insurance and reinsurance sector are required to register in accordance with certain stipulations of this law.
Algerian legislation prohibits any employing body “from employing, even on a temporary basis, foreign workers who do not have a level of qualification at least equivalent to that of a technician”.
Employers are free to recruit a foreign worker under the conditions laid down by law, provided there is no qualified national workforce available.
The procedure for recruiting a foreign worker in Algeria is relatively cumbersome and complex. This is broken down into 4 stages:
1) obtain an agreement in principle
2) obtaining a temporary work permit (APT)
3) Obtaining a work permit
4) Obtaining a work visa
Given this specificity, and in order to be fully supported, it is preferable to call on Salveo’s expertise. We ensure that your foreign employee is recruited in full compliance with local legislation.
Salveo's added value for your EOR services
With a local French-speaking team of experts and a strong presence in Algeria since 2008, we currently have several management contracts with French and foreign companies.
You can count on the support and expertise of the Salveo teams in your employee portage operation. From our local offices, we take care of hiring your future employees (local or foreign) on behalf of your company. The solutions we offer are both flexible and effective, to meet all your global human resources management needs.
Concretely, we create and manage for you:
- The employment contract of your collaborator, of whom we are the local employer.
- We pay their salary according to local customs and ensure social management with all relevant organizations.
- Cost management
- Monitoring paid leave
- Tax compliance
- Obtaining a visa and social coverage,
- The management of contract termination.
Other optional services are also offered to you, such as accommodation in our premises or the management of family needs.
With the support of Salveo, freelance administration will be your best asset for penetrating this market, thanks to the outsourcing of all your administrative constraints and the support of one of our collaborators dedicated to your project.
Overview of labour law in Algeria
- The employment contract :
There are three types of employment contract in Algeria:
– Fixed-term contracts (CDD)
– Open-ended contracts (CDI)
– Part-time contracts
Whether part-time or full-time, employees have the same rights (collective bargaining agreement, trial period, seniority, right to profit-sharing and remuneration, paid leave).
Unlike fixed-term contracts, permanent contracts do not have to be in writing. However, we recommend that you draw up your employment contracts in such a way as to avoid any ambiguity. When you call on Salveo, we’ll draw up your contracts to ensure that you comply fully with local regulations – we’ll take care of everything.
- Legal working hours
The legal working week is 40 hours spread over five working days (8 hours a day).
- Statutory holidays
Under Algerian law, all workers are entitled to one full day’s rest per week. The weekly rest day is generally Friday & Saturday.
- Compensation
In the public service, there is a guaranteed national minimum salary (SNMG) in Algeria. To determine this, it is necessary to take into account the evolution of:
– the national average productivity recorded;
– the consumer price index;
– the general economic situation.
In the private sector, salaries vary depending on
- employee experience
- the size of the company
- his activity.
Consequently, Salveo experts assist you in determining the fairest possible remuneration for your employee.
Since June 1st, 2020, the guaranteed national minimum wage has been increased to 20,000 DA (Algerian dinar) monthly (i.e. €128.35).
- Holidays
There are around ten public holidays in Algeria :
– The first day of the year;
– Labor Day ;
– The Independence Day ;
– L’aïd el Fitr ;
– L’aïd el adha ;
– Revolution Day;
– El Mawlid Enabawi “Mouloud” ;
– Mouharam ;
– Aâchoura ;
– Yennayer.
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