Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
DZD دج (Algerian Dinar)
Employer contributions
~34% employer SS (26% CNAS + 8% pension CNAS long-term)
Minimum wage
DZD 20,000/month (SNMG 2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Algiers
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~DZD 107,200 total
/month
For a gross salary of
DZD 80,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~34% employer SS (26% CNAS + 8% pension CNAS long-term)
Mandatory extras
Prime de Rendement (Performance Bonus)
Monthly admin
Monthly payroll - IRG withholding - CNAS by 20th - annual April return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
+
Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~DZD 107,200 total
Example gross salary
DZD 80,000 gross/month
~DZD 42,800 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~DZD 27,200 SS
Employer contributions on that salary
Employer contributions
~34% employer SS (26% CNAS + 8% pension CNAS long-term)
Employee contributions
~9% employee SS
Total cost above gross
~34% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~DZD 60,000
Per month
Algiers
DZD 80,000 - 200,000
~40%
Oran
DZD 65,000 - 160,000
~15%
Monthly gross. National average salary per year:
~DZD 720,000
Minimum wage
DZD 20,000/month (SNMG 2026)
Paid:
Monthly
Extra pay
Prime de Rendement (Performance Bonus)
Sector-dependent; often mandatory in public sector
December/January
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to DZD 120,000 / 20% / 30%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 20th
Social security payments
April 30 (annual income declaration)
Income tax
End of January
Employee tax certificate
Certificat de salaire
April 30
Annual return
Declaration annuelle des revenus
Late payment penalties
Late CNAS: 10% penalty + 3% monthly interest; late IRG: 25% penalty
Who collects what
DGI
Income tax (IRG)
CNAS
Social security
Inspection du Travail
Labor law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Conge annuel
30 days/year + supplementary based on seniority
Public holidays
~12 public holidays
Sick leave
Conge de maladie
CNAS pays from day 4 at 50% (then 100% from day 16)
Maternity leave
14 weeks
100% CNAS
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrat de Travail a Duree Indeterminee
Fixed term
Contrat de Travail a Duree Determinee
Independent contractor
Contrat de Prestation de Services
Collective agreements
Convention Collective de Branche
Ending employment
Indemnite de licenciement
How it is calculated
1 month/year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
High Employer Contribution Burden Mismanagement
Risk Level: HIGH
Algeria's 34% employer SS rate is one of the highest in the region. Employers who attempt to reduce contributions through undeclared allowances or informal supplementary payments face CNAS audit penalties of up to 3 times the evaded amount.
Foreign Worker Registration
Risk Level: HIGH
Algeria requires prior government authorization for hiring foreign workers, and employers must prove no qualified Algerian is available. Unauthorized foreign employment triggers company fines and worker deportation.
1 of 6
Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.