If you’re planning to expand your company to Algeria, you’ll have to set up compliant payroll. G-P can help you ensure you’re following local employment laws while mitigating risk and streamlining the management of your Algeria payroll — so you can focus on building your global teams.
Taxation rules in Algeria
Algeria uses a progressive tax rate — employees owe more as their income increases. As an employer, you’re required to register for income tax with your local tax office within 2 months of forming your company. Corporate tax rates vary by industry. For example, manufacturing companies owe 19% of profits, while public works businesses owe 23%.
Algeria payroll options for companies
There are 3 different Algeria payroll options that companies can choose from:
- Internal: An internal payroll team will help you handle all aspects of paying your employees. However, you’ll need a large budget and staff to ensure you comply with Algeria’s laws.
- Algeria payroll processing company: If the above 2 options don’t work for your company, outsourcing is another way to set up and manage your payroll. You can work with an Algeria payroll processing company, but you’ll still be held responsible for compliance.
- Employer of Record (EOR): Finally, you can opt for partnering with an EOR like G-P in Algeria. G-P backs its platform with the largest team of HR and legal experts to ensure your payroll setup and management is compliant and accurate. That means you can focus on growing your global teams.
How to set up a payroll in Algeria
You cannot set up your Algeria payroll until you have a fully registered company in the country. The only exception is working with an EOR like G-P. Instead of establishing a subsidiary before you set up your Algeria payroll, you can take advantage of the fact that you don’t need to set up an entity before beginning operations when you partner with G-P.
Entitlement/termination terms
Entitlement and termination laws differ by country, and you may find it challenging to terminate an employment relationship in Algeria. Adding termination and entitlement terms to your employment contracts before settling on an Algeria payroll option will help you stay compliant. An employment contract can get terminated by one party, both parties, or at the end of the duration of employment as agreed on in the contract.
Keep in mind that employees are entitled to compensation in cash if they’re terminated for any reason other than misconduct after working for your company for at least 2 years.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.