Minimum Wage
Algeria's minimum wage is set by government decree after consulting key trade unions and employer associations, considering productivity, the consumer price index, and economic conditions. It includes basic wages and bonuses but excludes expense reimbursements. Labour inspectors enforce compliance, and non-compliant enterprises face fines, with penalties multiplying for repeated offences.
Algeria’s labour law stipulates that the minimum wage is set through government decree after consultation with the most representative trade union of workers and associations of employers. The minimum wage (National Minimum Guaranteed Wage (SNMG) consists of the basic wage, allowances and bonuses of any kind, excluding allowances paid as reimbursement for expenses incurred by the worker. The following are not included in the minimum wage:
1. Reimbursements for expenses paid by the worker;
2. Compensation for professional experience or years of service (seniority bonus);
3. Payments for shift work, continuous service, or overtime;
4. Allowances for working in remote or isolated locations;
5. Performance bonuses, profit-sharing, or rewards based on individual or team results.
To determine the minimum wage, the national average productivity, consumer price index price and general economic conditions are taken into consideration.
Labour inspectors observe and report transgressions of the provisions of the labour legislation. A non-compliant enterprise shall be punished with a fine mentioned in the legislation and in case of reoffence, the penalty is multiplied by as many times as there are offences.
Source: §87, 138 & 149 of Labour Law, 1990
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Algerian labour law defines the minimum wage as the basic income plus allowances and bonuses, excluding reimbursements for expenses. Employers are obligated to pay employees regularly and clear arrears within a week after the end of the month, as required by the Collective Framework Agreement.
In Algerian labour law, the minimum wage comprises the basic income and all allowances and bonuses, minus allowances paid as reimbursement for the worker's expenses.
The law stipulates more than once that the employer pay each employee the payment owed to him regularly and in arrears. In an employment relationship, the worker has been given the right to regular payment of the remuneration due to them. The framework Collective Framework Agreement obliges the employer to pay the worker in arrears no later than one week after the end of that particular month.
Source: §6 & 88 of the Labour Law, 1990; §94 of Framework Collective Agreement of the Private Economic Sector, 2006; Executive Decree No. 15-59 of February 8, 2015
