Social Security Programs Throughout the World: Africa, 2011

 

Algeria

Exchange rate: US$1.00 = 73.15 dinars.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1949.

Current laws: 1983, implemented in 1984 and 1994 (early pension).

Type of program: Social insurance system.

Coverage

All persons employed under a labor contract, household workers, actors, and certain categories of fishermen and apprentices with earnings of at least half the legal minimum wage.

The legal monthly minimum wage is 15,000 dinars.

Special systems for armed forces personnel and self-employed persons.

Source of Funds

Insured person: 7% of gross earnings (including 0.5% for the early pension).

The insured person's contributions finance old-age benefits only. Disability benefits, survivor benefits, and the death grant are financed under Sickness and Maternity.

Self-employed person: Not applicable.

Employer: 10.25% of gross payroll (including 0.25% for the early pension).

The employer's contributions finance old-age benefits only. Disability benefits, survivor benefits, and the death grant are financed under Sickness and Maternity.

Government: None; the government subsidizes the minimum pension.

Qualifying Conditions

Old-age pension: Age 60 (men); age 55 (veterans) with at least 15 years of contributions; age 55 (women) with at least 10 years of contributions; any age (men and women) with at least 32 years of contributions. Employment must cease.

Workers who do not have the required number of years of coverage at the normal retirement age can continue to work for up to five years to meet the qualifying conditions.

Persons employed in arduous or unhealthy work can retire before the normal retirement age. The normal retirement age for insured women (age 55) who have raised at least one child for at least nine years is reduced by a year for each child, up to three years. The normal retirement age for veterans with a disability (age 55) is reduced, according to the assessed degree of disability.

Paid at any age for workers with a total disability who do not meet the qualifying conditions for a disability pension.

Partial pension: Age 50 with at least 20 years of contributions (men) and age 45 with at least 15 years of contributions (women) and voluntarily retired from employment.

Early pension: Age 50 (men) and age 45 (women) with at least 20 years of contributions. The insured must be involuntarily unemployed due to economic factors such as downsizing or business closure, must have worked at least three of the last 10 years with the employer, and must not receive income from any professional activity. The employer must pay a lump-sum contribution, calculated according to the number of years that the insured retires before the normal retirement age.

Dependent spouse's supplement: Paid for a dependent spouse whose income is less than the minimum old-age pension (11,250 dinars).

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

Retirement settlement: Age 60 or older with at least five years or 20 quarters of coverage and does not meet the qualifying conditions for the old-age pension.

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

Disability pension: The total disability pension is paid if the insured is assessed with a total loss of working capacity. The insured must have at least 60 days of employment in the last 12 months or 180 days in the last three years.

Partial disability: The insured must be assessed with at least a 50% loss of earning capacity.

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

All disability benefits are payable abroad only under reciprocal agreement.

Survivor pension: The deceased was a pensioner or met the qualifying conditions for a pension.

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

Eligible survivors are a widow(er) of any age; children younger than age 18 (age 25 if an apprentice with earnings not greater than half the legal minimum wage, age 21 if a student, no limit if disabled or a daughter without income); and dependent parents with income less than the minimum old-age pension.

All survivor benefits are payable abroad only under reciprocal agreement.

Old-Age Benefits

Old-age pension: The pension is 2.5% of average monthly earnings in the five years before retirement or the best five years of the total professional career (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 pension is paid monthly.

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

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

The legal monthly minimum wage is 15,000 dinars.

Dependent spouse's supplement (regular pension): 1,731 dinars is paid.

Constant-attendance supplement (regular pension): 40% of the insured's pension is paid. The minimum supplement is 2,470.34 dinars.

Partial pension and early pension: The pension is reduced by 1% for each year the pension is awarded before the normal retirement age. The pension is increased every 12 months by 1% until the pensioner reaches the normal retirement age, at which time it is recalculated using the number of years the pension was awarded before the normal retirement age and the insured's total coverage period.

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

The legal monthly minimum wage is 15,000 dinars.

Retirement settlement: The benefit is a lump sum of 2.5% of average monthly earnings in the five years before retirement or the best five years of the total professional career (whichever is greater) multiplied by the number of years of contributions.

Benefit adjustment: Benefits are adjusted annually in May.

Permanent Disability Benefits

Disability pension: The pension is 80% of average earnings in the last year or the best three years of the total work history (whichever is greater).

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

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

Partial disability: The pension is 60% of average earnings in the last year or the best three years of the total work history (whichever is greater).

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

The legal monthly minimum wage is 15,000 dinars.

Benefit adjustment: Benefits are adjusted annually in May.

Survivor Benefits

Survivor pension: 75% (50% if there are other survivors) of the old-age or disability pension the deceased received or would have been 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 would have been entitled to receive is paid for one other survivor; 40% is split equally if there is more than one survivor.

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

All survivor benefits combined must not be less than 75% of the legal monthly minimum wage.

All survivor benefits combined must not exceed 90% of the pension the deceased received or would have been entitled to receive.

The legal monthly minimum wage is 15,000 dinars.

Benefit adjustment: Benefits are adjusted annually in May.

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 15,000 dinars.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

National Retirement Fund (http://www.cnr-dz.com) administers the old-age program for salaried employees.

National Social Insurance Fund administers the disability and survivors program for salaried employees.

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

Sickness and Maternity

Regulatory Framework

First law: 1949.

Current law: 1983, implemented in 1984.

Type of program: Social insurance system.

Coverage

Cash and medical benefits: All employed persons.

Medical benefits only: Self-employed persons; persons receiving an unemployment benefit, persons receiving the early pension, national liberation war pensioners, persons with at least a 50% assessed degree of disability, unemployed students, and their respective dependents; the dependents of certain categories of prisoners; social assistance beneficiaries.

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 taxable income.

Employer: 12.5% 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.

Qualifying Conditions

Cash sickness benefits: The insured must be in covered employment when the incapacity begins. 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; 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: The insured must have at least 15 days (or 100 hours) of insured employment in the last three months or 60 days (or 400 hours) in the last 12 months before the pregnancy began.

Medical benefits: The insured must have at least 15 days (or 100 hours) of insured employment in the three months before the year in which the incapacity began or 60 days (or 400 hours) of employment in the last 12 months.

Sickness and Maternity Benefits

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

The minimum daily wage is eight times the legal hourly minimum wage.

The legal hourly minimum wage is 86.54 dinars.

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

The minimum daily wage is eight times the legal hourly minimum wage.

The legal hourly minimum wage is 86.54 dinars.

Workers' Medical Benefits

Benefits include medical treatment, surgery, hospitalization, medicine, laboratory services, ophthalmologic and optician services, some dental care (including prostheses), 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 chronic diseases, work injury beneficiaries with an assessed degree of disability of more than 50%, and old-age pensioners or disability pensioners with income less than the legal minimum wage).

The legal monthly minimum wage is 15,000 dinars.

Maternity 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 and Social Security provides general supervision.

National Social Insurance Fund administers the program for salaried employees.

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

Work Injury

Regulatory Framework

First law: 1919.

Current law: 1983, implemented in 1984.

Type of program: Social insurance system.

Coverage

All employed persons, apprentices, students (including those in technical schools), trainees, persons undergoing medical or vocational rehabilitation, some voluntary workers, wards of juvenile courts, and prisoners working in prison workshops.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1.25% of gross payroll.

Government: None.

Qualifying Conditions

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

Temporary Disability Benefits

100% of the net daily wage is paid from the day after the disability began until full recovery or certification of permanent disability.

The minimum daily wage is eight times the legal hourly minimum wage.

The legal hourly minimum wage is 86.54 dinars.

Permanent Disability Benefits

Permanent disability pension: The pension is the average earnings in the last 12 months multiplied by the assessed degree of disability.

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

The annual earnings used to calculate the pension must not be less than 2,300 times the legal hourly minimum wage.

The legal hourly minimum wage is 86.54 dinars.

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

Foreign worker settlement: If there is no reciprocal agreement, a lump sum of three times the annual pension is paid to injured foreign workers who leave the country.

Workers' Medical Benefits

Benefits include medical treatment, surgery, hospitalization, medicine, laboratory services, ophthalmologic and optician services, some dental care, prostheses, functional and vocational rehabilitation, specialized treatments, and transportation.

There is no limit to duration.

Survivor Benefits

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

Eligible survivors are a widow of any age; children younger than age 18 (age 25 if an apprentice with earnings of no more than half the legal minimum wage, age 21 if a student, no limit if disabled or a daughter without income); and dependent parents with income less than the legal monthly minimum wage.

The legal monthly minimum wage is 15,000 dinars.

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

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 to a full orphan and 30% to a dependent parent.

All survivor benefits combined must not exceed 90% of the deceased's average annual earnings. The deceased's average annual earnings must not be less than 2,300 times the legal hourly minimum wage.

The legal hourly minimum wage is 86,54 dinars.

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 15,000 dinars.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

National Social Insurance Fund administers the program.

Unemployment

Regulatory Framework

First and current law: 1994.

Type of program: Social insurance system.

Coverage

Salaried workers.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 0.5% of gross earnings.

Self-employed person: Not applicable.

Employer: 1% of gross payroll plus a lump-sum contribution of 80% of each laid-off worker's average monthly earnings in the last year for each year of employment (up to 12 years) if the employee worked for the employer for more than three years.

Government: None.

Qualifying Conditions

Unemployment benefit: The insured must be involuntarily unemployed; must have at least three years of contributions, including the six months before unemployment; must not receive income from any professional activity; must have been looking for work for at least three months; and must reside in Algeria. The previous employer must have paid all required social security contributions.

Unemployment Benefits

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 15,000 dinars.

The minimum duration of benefit entitlement is 12 months.

The total duration of benefit entitlement is split into four equal periods and the benefit declines over the four periods. The monthly benefit is 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 minimum monthly benefit is 70% of the legal monthly minimum wage.

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

The legal monthly minimum wage is 15,000 dinars.

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 the old-age, disability, and survivor pension.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

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

Family Allowances

Regulatory Framework

First and current law: 1941.

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 family allowances.

Qualifying Conditions

Family benefits: The child must be younger than age 17 (age 18 if an apprentice, age 21 if a student or disabled). The insured must earn at least half the legal monthly minimum wage; have a disability or illness; or be receiving an unemployment benefit, early retirement benefit, or old-age pension.

The legal monthly minimum wage is 15,000 dinars.

Family Allowance Benefits

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

School allowance: Paid for children older than age 6. If family earnings are 15,000 dinars a month or less, 800 dinars a year is paid for each of the first five children and 400 dinars for each additional child. If family earnings exceed 15,000 dinars a month, 400 dinars a year is paid for each child. The school allowance is paid once a year in addition to family allowances.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

National Social Insurance Fund administers the program.