Algeria payroll guide (2026): IRG, CNAS and SNMG

Income tax (IRG)

Salaries are taxed under Article 104 of the Code des impôts directs et taxes assimilées (CIDTA), using the scale set by the 2022 Finance Law. The 2026 Finance Law did not change the salary scale. The employer withholds IRG monthly. The taxable base is gross salary minus the 9% employee social security contribution.

Monthly taxable income (DZD)	Rate
0 – 20,000	0%
20,000 – 40,000	23%
40,000 – 80,000	27%
80,000 – 160,000	30%
160,000 – 320,000	33%
Above 320,000	35%

The annual scale is the monthly scale multiplied by 12.

40% abatement. The tax computed on the scale (not the salary) is reduced by 40%. The reduction is at least DZD 1,000 and at most DZD 1,500 a month.

Low-salary exemption. Taxable monthly salary up to DZD 30,000 is fully exempt. Between DZD 30,001 and 35,000 a smoothing formula applies, published as IRG after abatement × 137/51 − 27,925/8. A separate formula applies to disabled workers and general-scheme retirees up to DZD 42,500. Check both against the DGI page before coding a payroll engine.

CNAS also collects for pensions (CNR) and unemployment insurance (CNAC). There is no ceiling: contributions apply to full gross pay, excluding family allowances, expense reimbursements and some special allowances. The SNMG is the minimum base.

Branch	Employer	Employee
Social insurance (sickness, maternity, disability, death)	11.5%	1.5%
Work accidents and occupational disease	1.25%	–
Retirement (CNR)	11%	6.75%
Early retirement	0.25%	0.25%
Unemployment (CNAC)	1%	0.5%
Social works fund (FNPOS)	0.5%	–
Total	25.5%	9%

The branch split is from CLEISS (1 January 2024). One Algerian simulator splits the employer share differently, but all sources agree on the totals. In construction, public works and hydraulics, unemployment insurance is 0.375% higher on each side.

Foreign employees are affiliated on the same basis as nationals, unless a bilateral agreement (for example with France, Tunisia, Morocco or Belgium) provides otherwise.

Other payroll levies: a 1% continuing vocational training tax and a 1% apprenticeship tax on payroll, reduced by qualifying training spend. The 2026 Finance Law makes these declarations bi-annual.

Sources differ on CNAS filing frequency and the deadline for the annual wage declaration (DAS). Confirm both with CNAS.

End of service and dismissal

There is no statutory end-of-service gratuity on ordinary termination or resignation. Pensions are paid by CNR.

Abusive dismissal: a dismissal in breach of Article 73 of Law 90-11 is presumed abusive. The court orders reinstatement or, if either party refuses, compensation of at least six months’ salary, plus possible damages.
Procedural breach only: compensation at least equal to the salary the worker would have earned.
Economic dismissals (workforce reduction) carry an employer indemnity and a CNAC unemployment-insurance contribution. Collective agreements commonly grant severance, often around one month per year of service.

Salary payment rules

Wages are paid in DZD, normally monthly, by bank or CCP (Algérie Poste) transfer, with a mandatory payslip. There is no wage protection system (WPS). IRG withheld goes on the monthly G50 return, due by the 20th of the following month.

Working time and leave

Hours: 40 a week (Ordinance 97-03), normally over five days. The weekend is Friday and Saturday.
Overtime: a premium of at least 50% of the normal hourly wage (Law 90-11, Art. 32). Overtime is capped at 20% of legal hours. Collective agreements often set higher rates for night and rest-day work.
Annual leave: 2.5 working days per month of service, or 30 calendar days a year. Work in the southern wilayas earns up to 10 extra days.
Maternity leave: 14 weeks (98 days), paid at 100% of salary by CNAS. Paternity leave is 3 days.
13th month: not statutory. Performance bonuses and other allowances are common under collective agreements, especially in state-owned companies.

Minimum wage

The SNMG is DZD 24,000 a month (DZD 138.46 an hour) from 1 January 2026. Presidential Decree 26-01 of 7 January 2026 set it retroactively and replaced the DZD 20,000 rate. It applies to the public and private sectors.

Gotchas for foreign employers

A plain progressive calculator gets low salaries wrong: it misses the exemption, the smoothing formulas and the 40% abatement on the tax.
CNAS contributions are due on at least the SNMG, even for part-time pay.
Foreign nationals need a work permit before starting. Expatriates’ transfers of savings abroad follow Bank of Algeria rules.
The 1% training and 1% apprenticeship levies are often missed in cost estimates. Compare Tunisia and Morocco, or see providers.

Frequently asked questions

Are low salaries exempt from IRG in Algeria?

Yes. Taxable monthly salary up to DZD 30,000 is fully exempt. Between DZD 30,001 and 35,000 a smoothing formula applies, so the tax rises gradually rather than all at once.

What is the minimum wage (SNMG) in Algeria in 2026?

DZD 24,000 a month for a 40-hour week, from 1 January 2026 (Presidential Decree 26-01). It applies to the public and private sectors and is also the minimum base for CNAS contributions.

Is there an end-of-service gratuity in Algeria?

No statutory gratuity is paid on ordinary termination or resignation; pensions come from CNR. A dismissal found abusive leads to reinstatement or compensation of at least six months' salary.