Wage portage in Algeria

The Algerian job market

Although the impact of the health crisis on the Algerian job market is still being felt, recruitment has risen sharply in 2021. Forty-three percent of the companies surveyed by a specialist in human resources services and technologies hired new employees last year, mainly in the IT, banking and insurance industries (38% and 46% respectively of companies in the industry surveyed). Conversely, 41% preferred to put their recruitment plans on hold, and 16% gave up recruitment altogether. In the construction and public works industry, which were the hardest hit by the pandemic, 70% of companies have postponed or canceled recruitment.

According to Abdelkader Djaber, Managing Director of the Algerian National Employment Agency (ANEM), there have been a total of 1.4 million job seekers since the beginning of 2021. Of these, 800,000 of them, aged between 19 and 40, are receiving unemployment benefits ranging from DA 8,000 to DA 15,000.

The rise in the unemployment rate observed since 2020 is especially worrying among recent graduates, who account for 33% of job seekers with the Agency. Mr. Djaber announced that pre-employment contracts would be extended for another year.

Despite these efforts, the Algerian labor market is going through a difficult period. Informal activity still accounts for a very large share of the country’s GDP, according to the Algerian National Statistics Office (ONS). But these jobs are precarious, and these workers have no social protection and none of the rights of formal workers.

What’s more, if they can’t find a job after a year or more, nearly 8 out of 10 unemployed people are prepared to accept a position that doesn’t match their qualifications and/or is below their skill level, and is poorly paid. Thirty-three percent of them are even willing to agree to take on a difficult or hazardous job.

The main industries recruiting in Algeria in 2022

A platform dedicated to employment in Algeria has surveyed 500 companies of all sizes and industries about recruitment prospects in Algeria. The results show that 37% of respondents plan to expand their workforce, an increase of 9% over 2021.

An analysis of the job offers published on this website shows that by 2022, demand for skills will be strongest for the following professions:

• Sales and marketing; 
• Administration; 
• Industry. 

The biggest providers of jobs are 38% of VSEs and SMEs, and 34% of large organizations. These companies are in the following industries:

• 42% of manufacturers,
• 38% of players in the service industry,
• 32% of companies in the building and civil engineering industry,
• 29% of trade and distribution companies.

Conditions for working in Algeria

Non-residents wishing to work in Algeria must first obtain a work permit and be eligible for a work visa. Work permits and work visas are issued by the Algerian embassy or the Algerian consulate in the country of origin.

To find a job in Algeria, the most common solution is to look for job offers published on professional social networks or general and specialized online job boards. Job applicants can also send their applications directly to the companies they are interested in working for.

Once the company has decided to hire an applicant, an employment contract must be drawn up. This contract must include mandatory information such as the nature of the work, working hours, the amount of remuneration, allowances, benefits in kind, paid vacations, the conditions for terminating the contract, etc.

Various Algerian laws and the Algerian constitution protect workers in several ways:

• Working hours: the working week is 44 hours spread over five or six days, with one day off, usually Friday. Overtime must be paid at a minimum of 50% of the employee’s hourly wage, and may not exceed more than 20% of normal hours.
• Legal age: workers may not be younger than 16, except under an apprenticeship contract with the authorization of their parents or legal guardian.
• The employment of minors in hazardous conditions is prohibited.
• Discrimination: the Algerian constitution prohibits discrimination (employment, remuneration, working environment) based on gender, age, origin, marital status, family ties, political affiliation, disability or union membership.
• Employees have the right to join or form trade unions, and these unions have the right to engage in collective bargaining.

Wage portage in Algeria is an interesting alternative for entering this market without having to set up a separate legal entity. Somewhere between entrepreneurship and salaried employment, this booming form of employment offers independent workers considerable autonomy and comprehensive social protection (membership in the general health insurance plan, mutual insurance, pension contributions and unemployment benefits). Wage portage also eliminates administrative worries, because the employer of record handles all the paperwork, which offers savings and provides flexibility.