Hiring in Algeria while managing from abroad: an employer's obligations

The first hire is a step our clients look forward to: it is often the sign that the company is really taking off. It is also the moment when its obligations change in nature. Until then, the company had to declare an activity; from now on, it must also manage an employment relationship, with deadlines that do not forgive.

A written contract, and registration within ten days

Every hire starts with an employment contract, open-ended or fixed-term depending on the need. The employer must then register the employee with the CNAS within ten days of hiring. If the company has never employed anyone, it must also open its employer account.

These ten days go quickly when the manager is abroad and the employee's documents have to be gathered locally.

Every month: contributions and returns

A salary triggers several monthly obligations:

• the contribution return to the CNAS;
• payment of income tax withheld on salaries, through the G50 return;
• the G29 return, covering salaries paid.

Social contributions are split between an employer's share and an employee's share, which the employer deducts from gross salary and pays over.

Every year: the annual salary return

Between 1 and 31 January, the employer files the annual salary return with the CNAS. Late filing exposes the company to penalties that increase over time. This regularity is also what allows the company to obtain its compliance certificate, often requested by clients, particularly public ones, and by banks.

The manager is not an employee like the others

A non-salaried manager is covered by the CASNOS, not the CNAS. Conversely, a minority manager with a genuine employment contract is in principle covered by the CNAS. This distinction is settled when the company is set up: we discuss it in our comparison of SARL, SPA and EURL.

Case in point — Nadia (name changed), who runs a services company from Montreal, hired an assistant in Algiers. The CNAS registration was made six weeks after hiring, while the documents were being gathered. The company had to regularise its situation, penalties included, and its compliance certificate remained blocked during the process.

What still needs organising locally

Payslips, leave, absences: all of this is handled day to day. The Company Management Package takes care of the social and tax returns related to salaries; preparing payslips remains a separate service, to be organised with the accountant. For an overview of the deadlines, see the tax and social calendar of a company managed from abroad.

Frequently Asked Questions

How soon must a new employee be registered with the CNAS? Within ten days of hiring.

Which monthly returns does an employee involve? The contribution return to the CNAS, income tax withheld at source through the G50, and the G29 salary return.

Must the manager be registered with the CNAS? A non-salaried manager is covered by the CASNOS. A minority manager with a genuine employment contract is in principle covered by the CNAS.

Can an employee on site file the company's returns? They can help gather documents, but the returns commit the employer. They must be handled by the company itself or by an appointed professional.

Key Takeaway

A first employee adds several recurring obligations and one immediate deadline: registration with the CNAS within ten days. From abroad, this first deadline is the one most often missed.

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Preparing a first hire in Algeria? Book a discovery call to secure your employer obligations.