Algeria

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1949.

Current laws: 1983 (old age), implemented in 1984; 1983 (disability and survivors), implemented in 1984; and 1994 (early pension).

Type of program: Social insurance system.

Note: In 2015, coverage was extended to self-employed persons. The qualifying conditions and benefit calculations differ from those of employed persons.

Coverage

Employed persons with a labor contract, household workers, veterans, certain categories of fishermen and apprentices with earnings of at least half the legal minimum wage, and self-employed persons (nonwage earners).

The legal monthly minimum wage is 18,000 dinars.

Special system for military personnel.

Source of Funds

Insured person: 7% of gross earnings (old age). See source of funds under Sickness and Maternity for disability and survivors benefits and the death grant.

Self-employed person: 7.5% of annual declared covered income.

The minimum annual earnings used to calculate contributions are 216,000 dinars.

The maximum annual earnings used to calculate contributions are 4,320,000 dinars.

Employer: 11.25% of gross payroll (old age). See source of funds under Sickness and Maternity for disability and survivors benefits and the death grant.

Government: Subsidizes the minimum pension; contributes as an employer.

Qualifying Conditions

Old-age pension (employed persons): Age 60 (men) or age 55 (women and veterans) with at least 15 years of coverage, including at least 7.5 years of paid contributions; age 58 (rising to age 59 in 2018) with at least 32 years of coverage; or at any age for employed persons with a total disability who do not qualify for a disability pension.

The retirement age is reduced for persons employed in arduous or unhealthy work, women who have raised at least one child for at least nine years (for up to three children), and veterans with a disability.

Workers who do not have the required number of years of coverage at the normal retirement age can continue working for up to five years to qualify.

Employment must cease.

Dependent spouse's supplement: Paid for a dependent spouse with no income.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Early pension: Age 50 (men) or age 45 (women) with at least 20 years of contributions. Must be involuntarily unemployed due to economic factors, such as downsizing or business closure; have worked at least three of the last 10 years for the same employer; and not receive income from any professional activity.

Old-age pension (self-employed persons): Age 65 (men) or age 60 (women and veterans) with at least 15 years of coverage (7.5 years for veterans and disabled).

The retirement age is reduced by one year per child for women who have raised at least one child for at least nine years (for up to three children); by five years for every 10 degrees of assessed disability if disabled.

Retirement settlement (employed and self-employed persons): Age 60 (employed person) or age 65 (self-employed persons) with at least five years but less than 15 years of contributions.

All old-age benefits are payable abroad under reciprocal agreement.

Disability pension (employed persons): Must be assessed with a total (100%) loss of work capacity and have at least 60 days of employment in the last 12 months or 180 days in the last three years before the disability.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Partial disability: Must be assessed with at least a 50% loss of work capacity.

The disability pension ceases at the normal retirement age and is replaced by the old-age pension of at least the same amount.

Disability pensions are not payable abroad.

Disability pension (self-employed persons): Must be younger than the retirement age, assessed with a total (100%) loss of work capacity and have at least one year of coverage before the first medical examination confirming the disability.

Survivor pension (employed and self-employed persons): The deceased received or was entitled to receive an old-age or disability pension.

Eligible survivors include a widow(er) of any age; children younger than age 18 (age 25 if an apprentice with monthly earnings up to half the legal monthly minimum wage; age 21 if a student; no limit if disabled or a dependent daughter, niece, sister, or aunt without income); and dependent parents with monthly income below the minimum monthly old-age pension.

Death grant (employed persons): The deceased had at least 15 days (or 100 hours) of insured employment in the three months before death.

Eligible survivors include a widow(er) of any age; children younger than age 18 (age 25 if an apprentice with monthly earnings up to half the legal monthly minimum wage; age 21 if a student; no limit if disabled or a dependent daughter, niece, or sister without income); and dependent parents with monthly income below the minimum monthly old-age pension.

The minimum monthly old-age pension is 75% of the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Death grant (self-employed persons): There is no qualifying period.

All survivor benefits are payable abroad under reciprocal agreement.

Old-Age Benefits

Old-age pension (employed-persons): The pension is 2.5% of the insured's average monthly earnings in the five years before retirement or the best five years of the total work history, whichever is greater, multiplied by the number of years of contributions, up to 80%.

To calculate the pension, each covered year or covered quarter is based on 180 days or 45 days of work, respectively.

The minimum monthly old-age pension is 75% of the legal monthly minimum wage.

The maximum monthly old-age pension is 15 times the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Dependent spouse's supplement: 2,500 dinars a month is paid.

Constant-attendance supplement: 40% of the old-age pension is paid.

Early pension: The pension is reduced by 1% for each year the pension is claimed before the normal retirement age. The pension is increased by 1% every 12 months until the pensioner reaches the normal retirement age. The pension is then recalculated using the number of years the pension was claimed before the normal retirement age and the insured's total coverage period. The benefit is financed by the employer, who pays a lump sum to the National Retirement Fund according to the number of years that the insured retires before the normal retirement age.

The minimum monthly early pension is 75% of the legal monthly minimum wage.

Old-age pension (self-employed persons): The pension is 2.5% of the insured's average monthly insurable earnings in the best 10 years of the total work history, multiplied by the number of years of contributions, up to 80%.

Retirement settlement (employed and self-employed persons): A lump sum of 2.5% of the insured's average monthly earnings in the five years before retirement or the best five years of the total work history, whichever is greater, multiplied by the number of years of contributions, is paid.

Benefit adjustment: Benefits are adjusted annually on May 1.

Permanent Disability Benefits

Disability pension (employed persons): 80% of the insured's average monthly earnings in the last year or the best three years of the insured's total work history, whichever is greater, is paid.

Constant-attendance supplement: 40% of the disability pension is paid.

Partial disability: 60% of the insured's average earnings in the last year or the best three years of the total work history, whichever is greater, is paid.

The minimum monthly disability pension is 75% of the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Benefit adjustment: Benefits are adjusted annually on May 1.

Disability pension (self-employed persons): 80% of the insured's average annual covered earnings in the last year is paid. The pension is paid after a six-month waiting period.

Constant-attendance supplement: 40% of the disability pension is paid.

The minimum monthly disability pension is 75% of the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

The maximum monthly disability pension is eight times the legal monthly minimum wage.

Benefit adjustment: Benefits are adjusted annually on May 1.

Survivor Benefits

Survivor pension (employed and self-employed persons)

Spouse's pension: 75% (50% if there are other survivors) of the old-age or disability pension the deceased received or was entitled to receive is paid to the widow(er). If there is more than one widow, the pension is split equally.

Other eligible survivors: 30% of the old-age or disability pension the deceased received or was entitled to receive is paid for one other survivor; 40% is split equally if there is more than one other survivor.

If there is no surviving spouse, 45% of the old-age or disability pension the deceased received or was entitled to receive is paid to a full orphan and 30% to a dependent parent.

The maximum combined survivor benefit is 90% of the old-age or disability pension the deceased received or was entitled to receive.

Benefit adjustment: Benefits are adjusted annually on May 1.

Death grant (employed persons): A lump sum of 12 times the deceased's best monthly earnings in the year before death is paid.

Death grant (self-employed persons): A lump sum of annual insurable earnings is paid. The death grant is split equally among eligible survivors.

The minimum death grant is 12 times the legal monthly minimum wage (75% for inactive contributors).

The legal monthly minimum wage is 18,000 dinars.

The maximum monthly disability pension is eight times the legal annual minimum wage.

Administrative Organization

Ministry of Labor, Employment, and Social Security (http://www.mtess.gov.dz/) provides general supervision.

National Retirement Fund (http://cnr-dz.com/) administers the old-age program for employed persons.

National Social Insurance Fund (http://www.cnas.dz/) administers the disability and survivors program for employed persons.

National Social Security Fund for Nonwage Earners (http://www.casnos.com.dz/) administers the old-age and disability program for self-employed persons (nonwage earners).

Sickness and Maternity

Regulatory Framework

First law: 1949.

Current law: 1983 (social security), implemented in 1984.

Type of program: Social insurance system.

Coverage

Cash and medical benefits: Employed persons.

Medical benefits only: Self-employed persons, social insurance beneficiaries and their dependents, national liberation war pensioners, persons with at least a 50% assessed degree of disability, unemployed students and their dependents, social assistance beneficiaries, and certain other categories.

Source of Funds

Insured person: 1.5% of gross earnings.

The insured person's contributions also finance disability benefits, survivor benefits, and the death grant under Old Age, Disability, and Survivors.

Self-employed person: 7.5% of annual declared covered income (medical benefits).

The minimum annual earnings used to calculate contributions are 216,000 dinars.

The maximum annual earnings used to calculate contributions are 4,320,000 dinars.

Employer: 11.5% of gross payroll.

The employer's contributions also finance disability benefits, survivor benefits, and the death grant under Old Age, Disability, and Survivors.

Government: None; contributes as an employer.

Qualifying Conditions

Cash sickness benefits: For up to six months of benefits, the insured must have been employed for at least 15 days (or 100 hours) in the last quarter or 60 days (or 400 hours) in the last 12 months before the incapacity began; for more than six months of benefits, the insured must have been employed for at least 60 days (or 400 hours) in the last 12 months or 180 days in the last three years.

Cash maternity benefits: Must have been employed for at least 15 days (or 100 hours) in the last three months or 60 days (or 400 hours) in the last 12 months before the pregnancy began.

Medical benefits (employed persons): Must have been employed for at least 15 days (or 100 hours) in the three months before the year in which the incapacity began or 60 days (or 400 hours) in the last 12 months.

Medical benefits (self-employed persons): Must have at least 15 days of coverage. Coverage is extended until the end of the calendar year in which employment ceases.

For full reimbursement of maternity care, the insured must notify the National Social Security Fund for Nonwage Earners six months before the expected date of birth and the pregnant woman must undergo four prescribed medical examinations.

Sickness and Maternity Benefits

Sickness benefit: 50% of the insured's daily earnings (100% for an extended illness or hospitalization) is paid for the first 15 days; 100% from the 16th day up to three years (four years under certain circumstances).

The minimum daily earnings used to calculate the benefit is the legal hourly minimum wage multiplied by the insured's normal working hours.

The legal hourly minimum wage is 103.84 dinars (January 1, 2012).

Maternity benefit: 100% of the insured's daily earnings is paid for up to 14 weeks, including up to six weeks before the expected date of childbirth.

The minimum daily earnings used to calculate the benefit is the legal hourly minimum wage multiplied by the insured's normal working hours.

The legal hourly minimum wage is 103.84 dinars (January 1, 2012).

Workers' Medical Benefits

Medical benefits (employed persons): Benefits include medical treatment, surgery, hospitalization, medicine, laboratory services, ophthalmological and optical services, some dental care, functional and vocational rehabilitation, prostheses, specialized treatments, and transportation.

Government hospitals provide free medical care for an unlimited duration for certain categories of sickness; some categories may require cost sharing.

Cost sharing: Medical expenses are reimbursed at 80%; 100% for insured persons with approved chronic diseases, work injury beneficiaries with an assessed degree of disability of more than 50%, and old-age or disability pensioners with monthly income below the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Maternity care is reimbursed at 100%, including hospital stays of up to eight days.

Medical benefits (self-employed persons): Benefits include the cost of pharmaceutical products, spa treatments, hospitalization, and care provided by doctors, dental surgeons, pharmacists, and certain auxiliary services.

Cost sharing: Medical expenses are reimbursed at 80%; 100% for difficult childbirth, family planning, incubation of newborns, blood and plasma transfusions, costs over a certain limit, and for insured persons with approved chronic diseases and old-age, disability, or survivor pensioners with monthly income below the legal monthly minimum wage and their dependents.

The legal monthly minimum wage is 18,000 dinars.

Maternity and neonatal care is reimbursed at 100%, including hospital stays of up to eight days.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Labor, Employment, and Social Security (http://www.mtess.gov.dz/) provides general supervision.

National Social Insurance Fund (http://www.cnas.dz/) administers the program for employed persons.

National Social Security Fund for Nonwage Earners (http://www.casnos.com.dz/) administers the program for self-employed persons (nonwage earners).

Work Injury

Regulatory Framework

First law: 1919.

Current law: 1983 (social security), implemented in 1984.

Type of program: Social insurance system.

Coverage

Employed persons, apprentices, students (including those in technical schools), trainees, and persons undergoing medical or vocational rehabilitation.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1.25% of gross payroll.

Government: None; contributes as an employer.

Qualifying Conditions

There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered.

Temporary Disability Benefits

100% of the insured's net daily salary is paid from the day after the disability began until full recovery or certification of permanent disability. (The employer pays the benefit for the first day.)

The minimum daily earnings used to calculate the benefit is 1/30th of the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars (January 1, 2012).

Permanent Disability Benefits

Permanent disability pension: The insured's average earnings in the last 12 months before the disability began multiplied by the assessed degree of disability is paid.

A lump sum is paid if the assessed degree of disability is less than 10%.

The minimum annual earnings used to calculate the pension is 2,300 times the legal hourly minimum wage.

The legal hourly minimum wage is 103.84 dinars (January 1, 2012).

Constant-attendance supplement: If the insured requires the constant attendance of others to perform daily functions, 40% of the permanent disability pension is paid.

Foreign worker settlement: If there is no reciprocal agreement, a lump sum of three times the annual permanent disability pension the insured would be eligible to receive is paid to injured foreign workers who leave the country permanently.

Workers' Medical Benefits

Benefits include 100% of the schedule fee for medical treatment, surgery, hospitalization, medicine, laboratory services, ophthalmological and optical services, some dental care, prostheses, functional and vocational rehabilitation, specialized treatments, and transportation.

There is no limit to duration.

Survivor Benefits

Survivor pension

Spouse's pension: 75% (50% if there are other eligible survivors) of the deceased's average earnings in the 12 months before the date of the accident resulting in the insured's death is paid to the widow. If there is more than one widow, the pension is split equally.

Other eligible survivors: 30% of the deceased's average earnings is paid for one survivor; 40% is split equally if there is more than one eligible survivor.

If there is no surviving spouse, 45% of the deceased's average earnings is paid for a full orphan and 30% to a dependent parent.

Eligible survivors include a widow of any age; children younger than age 18 (age 25 if an apprentice with earnings up to half the legal minimum wage, age 21 if a student, no limit if disabled or a dependent daughter, niece or sister without income); and dependent parents or parents-in-law with income below the legal monthly minimum old-age pension.

The minimum old-age pension is 75% of the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Survivors of foreign workers are eligible for benefits if they reside in Algeria or are covered under a reciprocal agreement.

The maximum combined survivor benefit is 90% of the deceased's average annual earnings. The deceased's average annual earnings must be at least 2,300 times the legal hourly minimum wage.

The legal hourly minimum wage is 103.84 dinars (January 1, 2012).

Death grant: A lump sum of 12 times the deceased's best monthly earnings in the year before death is paid.

The minimum death grant is 12 times the legal monthly minimum wage.

The legal monthly minimum wage is 18,000 dinars.

Benefit adjustment: Benefits are adjusted annually on May 1.

Administrative Organization

Ministry of Labor, Employment and Social Security (http://www.mtess.gov.dz/) provides general supervision.

National Social Insurance Fund (http://www.cnas.dz/) administers the program.

Unemployment

Regulatory Framework

First and current laws: 1994 (unemployment) and 1997 (weather-related unemployment).

Type of program: Social insurance system.

Coverage

Residents of Algeria.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 0.5% of gross earnings; an additional 0.375% if employed in the construction, public works, or hydraulics industries.

Self-employed person: Not applicable.

Employer: 1% of gross payroll; an additional 0.375% for employers in the construction, public works, or hydraulics industries.

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefit: Must be involuntarily unemployed; have at least three years of contributions, including six months immediately before unemployment; not receive income from any work-related activity; and have been looking for work for at least two months. The previous employer must have paid all required social security contributions.

Lump-sum subsidy: Must have worked for the same employer for more than three years.

Weather-related unemployment benefits: Paid to workers employed in the construction, public works, or hydraulics industries for work stoppages due to poor weather conditions. A worker must have at least 200 hours of employment in the last two months.

Unemployment Benefits

Unemployment benefit: Benefits are paid in four parts: 100% of the reference salary during the first period, 80% during the second period, 60% during the third period, and 50% during the fourth period.

The benefit is calculated using a reference salary of 50% of the sum of the insured's average monthly earnings in the last 12 months and the legal monthly minimum wage. The benefit is paid for two months for each year of contributions, up to 36 months.

The legal monthly minimum wage is 18,000 dinars.

The minimum duration of benefit entitlement is 12 months.

The minimum monthly benefit is 70% of the legal monthly minimum wage.

The maximum monthly benefit is three times the legal monthly minimum wage.

Lump-sum subsidy: The employer pays 80% of the insured's average monthly earnings in the last year for each year of employment (up to 12 years).

Unemployment beneficiaries and their dependents are eligible for sickness, maternity, and family benefits (entitlement may continue for up to 12 months after the unemployment benefit ceases). Periods during which the unemployment benefit has been paid are credited when calculating old-age, disability, and survivor pensions.

Weather-related unemployment benefits: 75% of the insured's hourly wages are paid for up to eight hours a day and 200 hours a year.

Administrative Organization

Ministry of Labor, Employment, and Social Security (http://www.mtess.gov.dz/) provides general supervision.

National Unemployment Insurance Fund (http://www.cnac.dz/) administers the program.

National Fund for Paid Holidays and Unemployment in the Public Works and Hydraulic Sectors administers the weather-related unemployment benefits program.

Family Allowances

Regulatory Framework

First and current law: 1941 (family allowance).

Type of program: Employment-related system.

Coverage

Nonagricultural employees and social insurance beneficiaries.

Exclusions: Self-employed persons.

Special systems for public-sector employees and employees of certain agricultural cooperatives.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost of the school allowance.

Government: The total cost of the family allowance.

Qualifying Conditions

Family allowance: Paid for children younger than age 17 (age 21 if an apprentice with earnings up to half the legal minimum wage, a student, or disabled). The insured must earn at least half the legal monthly minimum wage; have a disability or illness; or receive an unemployment benefit or old-age pension.

The legal monthly minimum wage is 18,000 dinars.

School allowance: Paid for children older than age 6. The insured must earn at least half the legal monthly minimum wage; have a disability or illness; or receive an unemployment benefit or old-age pension.

The legal monthly minimum wage is 18,000 dinars.

Family Allowance Benefits

Family allowance: If family earnings are 15,000 dinars a month or less, 600 dinars a month is paid for each of the first five eligible children and 300 dinars for each additional child; for more than 15,000 dinars a month, 300 dinars a month is paid for each eligible child.

School allowance: If family earnings are 15,000 dinars a month or less, 800 dinars a year is paid for each of the first five eligible children and 400 dinars for each additional child; for more than 15,000 dinars a month, 400 dinars a year is paid for each eligible child. The school allowance is paid once a year in addition to the family allowance.

Administrative Organization

Ministry of Labor, Employment, and Social Security (http://www.mtess.gov.dz/) provides general supervision.

National Social Insurance Fund (http://www.cnas.dz/) administers the program.