How the calculation works
- CNAS (employee): 9% of gross. Taxable salary = gross − CNAS.
- IRG: the monthly scale under Article 104 of the direct tax code, unchanged by Finance Law 2026.
| Monthly taxable salary (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% |
- Abatement: the IRG is reduced by 40%, by at least DZD 1,000 and at most DZD 1,500 a month.
- Exemption and smoothing: taxable salary up to DZD 30,000 is exempt. Between DZD 30,001 and 35,000 the IRG is (IRG after abatement × 137/51) − 27,925/8, the published smoothing formula. Check it against the DGI page for edge cases.
Examples
- DZD 40,000 gross: CNAS DZD 3,600; IRG DZD 2,272; net DZD 34,128.
- DZD 100,000 gross: CNAS DZD 9,000; IRG DZD 17,200; net DZD 73,800. The employer adds DZD 25,500 of CNAS.
Not modelled: the special formula for disabled workers and retirees, the flat rate on non-monthly bonuses, and the employer training levies. See the Algeria payroll guide.
Frequently asked questions
Is there income tax on low salaries in Algeria?
No. Taxable monthly salary (gross minus 9% CNAS) up to DZD 30,000 is fully exempt from IRG. Between DZD 30,001 and 35,000 a smoothing formula phases the tax in.
How much is CNAS in Algeria?
9% from the employee and 25.5% from the employer (including 0.5% for the FNPOS social fund), on the full salary with no ceiling.