Contractor Payroll in Algeria

Positioning a candidate internationally means navigating unfamiliar tax and payroll systems. Not only does this generally mean more work for you, but even small missteps can have serious financial or even legal consequences.

If you want to successfully place a contractor, you should first familiarize yourself with the contractor payroll process in Algeria, as well as how you can make the situation simpler.

Contractor Payroll in Algeria

Payroll options in Algeria

There are several different options for payroll in Algeria:

  • The client can provide payroll for the contractor, but not all clients offer this for temporary workers.  
  • The contractor can do it on their own, but this creates serious risk for the end client and possibly your agency, as well. Like most people, many contractors do not specialise in Algeria’s tax system, nor do they always have the time or means to pore over complex tax returns.
  • Your contractor can use a local payroll company.

The third option is the simplest and quickest. An even simpler and quicker option is to use an Umbrella Company, as they offer the same services as a local payroll provider in addition to other services that simplify international assignments (such as Work Permit sponsorship).

Check out our FAQ for specific quotes on payroll providers and Umbrella Companies. 

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Questions and Answers about

Questions and Answers about Payroll in Algeria


Q: How does payroll work in Algeria?

A: much the same as it does globally. Your employer (the company sponsoring your visa) pays the candidate on a monthly basis, social security (9% for the employee) and income tax (which ranges from 0-40%) are deducted at source and paid to the Algeria tax authorities. There is a compulsory employer social security contribution of 26%. Candidates are able to offset their taxable income with relevant business expenses. The World Bank estimates it takes employers in Algeria 110 man days to ensure compliance with payroll and labour taxes each year.

Q: What is the monthly cost to outsource payroll in Algeria?


Q: What is the estimated net retention for a contractor in Algeria earning USD 1000 per day?

A: Depending on how the income is structured but through our partner company around 90%

Q: What is the minimum salary required per month in Algeria when a candidate is sponsored on an Work Permit? 

A: €2000