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Hire in Algeria

Introduction

Algeria is a North African nation bordering the Mediterranean Sea. The country is considered the gateway between Africa and Europe. A considerable portion of the country comprises the Saharan desert; apart from the desert, a few mountains and a narrow coastal plain complete the country's territory. The nation has a mixed economic system, including various private freedoms, combined with centralized economic planning and government regulation. Hydrocarbons and public investments predominantly drive the Algerian economy. Hydrocarbons account for 19% of GDP, 98% of exports, and 60% tax revenues.

Overview of Algeria

Population: 44,616,624 (June 2021)

GDP: 151.46 billion USD

Economic Overview

Due to the outbreak of the COVID-19 pandemic and subsequent conditions, GDP growth in Algeria fell -6% in 2020. According to the IMF’s (International Monetary Fund’s) latest forecast for April 2021, the GDP of Algeria is expected to rise to 2.9% in 2021 and stabilize at 2.8% in 2022, subject to the post-pandemic global economic recovery.

Market Size

The market size in Algeria is not enough to accommodate all of its working-age population. As per the World Bank report, the unemployment rate is 14.5% in 2021, and the skill gap plays a vital reason in the unemployment of youth, women, and graduates. With better industrialization and proper skill training programs can address the skill gap and Algeria's unemployment issue.

A brief glimpse of industries

  • According to the national statistics office, the size of the industry represents 37.4% of GDP, employing 30.7% of the active population. The oil and gas sector of Algeria accounts for most of the federal income of the country. It sums up over 90% of the total export income of the country.
  • Apart from hydrocarbon industries, other revenue-generating manufacturing sectors in Algeria are industrial food processing, textile products, chemical products, metals, and construction materials.
  • For better industrialization, the government is looking for ways to reduce its dependence on gas for power generation by investing in solar energy.
  • The tertiary sector (service sector) contributes to nearly 46% of the annual GDP of Algeria and employs about 60% of the workforce. The nation's banking sector is dominated by public banks, which suffer from high levels of non-performing loans to state-owned enterprises.
  • To exploit the country's natural wealth, including the long Mediterranean coastline, desert landscapes of the Sahara, and cultural and historical sites of Algeria, the government is working to improve the tourism industry.

Cost of living in Algeria

Being one of the affordable countries in the world, Algeria offers quite a low-cost living experience in this nation. While housing will be the biggest expense, there is a huge difference between the house rent in the city center and outside the city. Your lifestyle even can add up to your monthly expense.

A Breakdown of the Average Living Cost in Algeria

Category

Area of expense

Estimated Monthly Cost (USD)

Rental

Monthly rent for a three-bedroom apartment

$ 408.14

Rental

Monthly rent for a one-bedroom apartment

$ 196.9

Food and beverage

Meal (Inexpensive Restaurant)

Domestic Beer (0.5 Liter)

Milk (1 Liter)

$ 2.7

$ 1.4

$ 0.75

Transport costs

Monthly ticket public transport

$ 10.9

Utilities

Including water, cooling, heating, and garbage services

Internet (Unlimited Data, Cable/ADSL)

$ 38.05

$ 45.64

Personal care

Membership at a fitness club

$ 22.31

Salary structure for various roles in Algeria

The following table represents the average annual salary of various sectors in Algeria.

Working Area

Average salary depending on the role (DZD)

Accounting and Finance (Chartered Accountant)

DZD 176,000

Administration / Reception / Secretarial (Office Manager)

DZD 155,000

Advertising / Graphic Design / Events (Graphic Designer)

DZD 114,000

Airlines / Aviation / Aerospace / Defense (Aerospace Engineer)

DZD 238,000

Architecture (Architect)

DZD 223,000

Automotive (Mechanic)

DZD 69,000

Banking (Bank Branch Manager)

DZD 349,000

Bilingual (Teacher)

DZD 148,000

Business Planning (Business Analyst)

DZD 226,000

Construction / Building / Installation (Construction Project Manager)

DZD 310,000

Customer Service (Customer Service Manager)

DZD 261,000

Engineering (Electrical Engineer)

DZD 179,000

Food / Hospitality / Tourism / Catering (Hotel Manager)

DZD 326,000

Health and Medical (Nurse)

DZD 326,000

Human Resources (Human Resources Manager)

DZD 267,000

Information Technology (Developer / Programmer)

DZD 179,000

Law Enforcement / Security / Fire ( police Officer)

DZD 108,000

Media / Broadcasting / Arts / Entertainment (Journalist)

DZD 220,000

Cost of renting

Average house rent in Algeria varies from $ 192.61 - $316.50 depending on location and type of the apartment. The cost of living alone is higher than living in a shared living space.

Your cost of living in Algeria depends on your location

The nation’s capital Algiers is the most expensive city to live in. There are also huge differences between living conditions in cities and rural areas. The following table shows the city-wise living cost in Algeria.

Name of the Cities

Average Salary

Cost of Living without rent /person

Rent

Algiers

$ 1344.44

$ 418.65

$ 153.55 - 247.32

Oran

$ 2159.58

$ 407.93

$ 125.87 - 208.49

Béchar

$ 1199.60

$ 342.67

$ 136.90 - 169.26

Batna

$ 1221.00

$ 378.33

$ 125.08 - 183.88

Constantine

$ 1301.01

$ 381.68

$ 102.05 - 144.37

Annaba

$ 1207.35

$ 409.97

$ 98.32 - 171.75

The top sectors that are expected to hire in Algeria in 2021

S.No

Industries

Employment by sector (in % of Total Employment)

Value Added (in % of GDP)

Value Added (Annual % Change)

1

Agriculture

9.7

12.0

2.3

2

Industry (essential commodities, food processing, electronic appliances, automotive, etc.)

30.7

37.4

1.1

3

Services (IT, telecommunication, electronics, etc.)

59.6

45.9

3.5

Top Skills in Algeria

In cities of Algeria, there are plenty of job opportunities for the skilled workforce. Language proficiency is another essential soft skill for multinational organizations. For experienced professionals, there are multiple options to choose from in Algeria. The major industries hiring in Algeria are

  • Agro-Industry
  • Petrochemicals
  • Fertilizers
  • Electronics & Household Goods
  • Steel & Steel Products
  • Pharmaceuticals
  • Water & Energy
  • Construction materials
  • Minerals
  • Automotive

Top Skills City-wise Occupation-wise

Algiers offers several job opportunities as several companies have their headquarters in this city. Algiers is the main financial hub of Algeria. These cities offer most opportunities in the field of:

  • Mobile Telecommunications
  • Broadcasting & entertainment
  • Marine transportation
  • Airlines
  • Publishing
  • Oil equipment, services & distribution
  • Conventional electricity

Annaba, a seaport city, offers job opportunities in the pharmaceuticals and chemicals industries. The city is also an important hub of the world steel industry. Other industrial sectors offering job opportunities in Annaba are agri-food, metal processing, wood products, and construction.

Oran has become a major trading center of Algeria. This city has multiple oil and gas companies offering services in the hydrocarbon industry. Apart from this, tourism is another protruding industry offering employment options for the people.

Ghardaia is a major center of date production and popular for the manufacture of rugs and clothes. The city offers job opportunities to skilled and creative weavers. Ghardaia also offers employment in the food processing industry.

Hiring Cost

Hiring cost is one of the crucial factors for any organization, especially when planning to hire in a foreign country. Hiring cost is a cumulative sum of all the costs associated with filling a position, such as advertising expenses, recruiting events costs, recruitment software fees, onboarding cost, training cost, travel costs, administrative costs and benefits.

Employment Laws in Algeria

  • Concluding a contract of employment in writing is not mandatory in Algeria; an oral contract is permissible. An employment contract can be given for a part-term, full-term or indefinite period.
  • The regulations that apply are very simple; however, the authorities have substantial power.

Minimum Employment Rules and Regulations applicable in Algeria:

  1. Hours of work: The normal weekly working time in Algeria is 40 hours over a 5-workday period, along with a mandatory rest day, usually on Friday.
  2. Annual leave: Along with nine mandatory public holidays, employees are entitled to have yearly paid leave of 30 days maximum duration accumulated over 12 months on a 2.5 days basis.
  3. Parental leave: Pregnant employees are eligible to get a 14-day of paid maternity leave. Employees must take their maternity leave starting at least a week before they will be admitted to the hospital.
  4. Sick leave: Employees are entitled to have paid sick leave from the first day of illness unless otherwise stated by the law.
  5. Minimum Salary: The monthly minimum wage in Algeria is 18,000 Algerian dinars. Employees must not be paid anything lower than the legal minimum.
  6. Overtime: An employee who can work overtime must not be more than 20% of the statutory normal hours. An employer is required to compensate for overtime with no lesser than 50% of the employee’s hourly pay.
  7. Employment termination: A contract of employment can be terminated by either of the parties by mutual consent. Employees are entitled to get compensation upon dismissal if they have worked for the company for a minimum of 2 years.

How Can Skuad Help You In Hiring in Algeria?

Hiring in Algeria involves in-depth knowledge of the employment laws, trends, city-wise living costs, hiring costs, along with the identification of skilled individuals. To make hiring in Algeria fast and easy, you can consider Skuad as your Employer of record partner. Skuad’s unified employment platform can serve as a one-click solution to hire the right individual based on your requirements and take responsibility for employment formalities. Appointing Skuad for your hiring will not only relieve you from hiring stress but also allow you to concentrate on your project and expansion plans.

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