Social Security Programs Throughout the World: Africa, 2007

 

Algeria

Exchange rate: US$1.00 equals 69.78 dinars.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1949.

Current laws: 1983, implemented in 1984, with 1996, 1997, and 1999 amendments; and 1994 (early pension).

Type of program: Social insurance system.

Coverage

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

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, below.

Self-employed person: Not applicable.

Employer: 10% of gross payroll (including 0.5% 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, below.

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 coverage. Age 55 (women) with at least 10 years of coverage. Regardless of age (men and women) with 32 years of contributions. Retirement from work is necessary.

Workers who do not have the required number of years of coverage at the normal retirement age can continue working for up to 5 years in order to satisfy the qualifying condition.

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 9 years is reduced by a year for each child, up to a maximum of 3 years. The normal retirement age for disabled veterans (age 55) is reduced, according to the assessed degree of disability.

Paid at any age for totally disabled workers who do not meet the disability pension qualifying conditions.

Partial pension: Age 50 with at least 20 years of contributions (men) and age 45 with 14 years of contributions (women).

Early pension: Age 50 with at least 20 years of contributions (men) and age 45 with 14 years of contributions (women). The insured 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.

Retirement settlement: Age 60 or older with at least 5 years or 20 quarters of coverage and ineligible for the old-age pension.

All old-age benefits are payable abroad only if there is a reciprocal agreement.

Disability pension: The total disability pension is paid for the assessed loss of all working capacity. The insured must be currently covered with at least 60 days of employment in the last 12 months or 180 days in the last 3 years.

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

All disability benefits are payable abroad only if there is a reciprocal agreement.

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

Death grant: The deceased had at least 15 days (or 100 hours) of insured employment in the 3 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 if there is a reciprocal agreement.

Old-Age Benefits

Old-age pension: The pension is equal to 2.5% of average monthly earnings in the 5 years before retirement or the best 5 years of the total professional career (whichever is higher) times the number of years of coverage, up to a maximum of 80%.

For pension calculation purposes, each covered year or covered quarter is based on 180 days or 45 days of work, respectively. The pension is paid monthly.

If the insured's pension is less than the legal monthly minimum wage, the amount paid is increased to the value of the legal monthly minimum wage. (The legal monthly minimum wage is 10,000 dinars.)

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

Dependent spouse's supplement: 1,000 dinars is paid.

Constant-attendance supplement: Equal to 40% of the insured's pension. The minimum supplement is 2,470.34 dinars.

Early pension: The pension is reduced by 1% for each year that 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, when it is then recalculated according to the number of years the pension was awarded before the normal retirement age and the insured's total coverage period.

If the insured's pension is less than 75% of the legal monthly minimum wage, the pension payable is increased by between 10% and 50%, according to the schedule in law. (The legal monthly minimum wage is 10,000 dinars.)

Dependent spouse's supplement: Equal to 12.5% of the legal monthly minimum wage.

The legal monthly minimum wage is 10,000 dinars.

Retirement settlement: A lump sum is paid equal to 2.5% of average monthly earnings in the 5 years before retirement or the best 5 years of the total professional career (whichever is higher) times the number of years of coverage.

Benefit adjustment: Benefits are adjusted annually in May.

Permanent Disability Benefits

Disability pension: The pension is equal to 80% of average earnings in the last year or the best 3 years of the total professional career (whichever is higher).

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: Equal to 40% of the pension.

Partial disability: The pension is equal to 60% of average earnings in the last year or the best 3 years of the total professional career (whichever is higher).

If the insured's pension is less than the legal monthly minimum wage, the amount paid is increased to the value of the legal monthly minimum wage. (The legal monthly minimum wage is 10,000 dinars.)

Benefit adjustment: Benefits are adjusted annually in May.

Survivor Benefits

Survivor pension: The widow(er) receives 75% of the old-age pension or disability pension (50% if there are other survivors) paid or payable to the deceased. If there is more than one widow, the pension is split equally among them.

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

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

If all survivor benefits combined are less than the legal monthly minimum wage, the amount paid is increased to the value of the legal monthly minimum wage. (The legal monthly minimum wage is 10,000 dinars.)

All survivor benefits combined must not exceed 90% (100% if the deceased's pension was less than the legal minimum monthly wage) of the pension paid or payable to the deceased. (The legal monthly minimum wage is 10,000 dinars.)

Benefit adjustment: Benefits are adjusted annually in May.

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

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

The legal monthly minimum wage is 10,000 dinars.

Administrative Organization

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

National Retirement Fund 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: Persons receiving an unemployment benefit, persons receiving the early pension, national liberation war pensioners, disabled persons with an assessed degree of disability of at least 50%, unemployed students, and their respective dependents; the dependents of certain categories of prisoner.

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, above.

Self-employed person: Not applicable.

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, above.

Government: None.

Qualifying Conditions

Cash sickness benefits: The insured must be in covered employment when the incapacity begins. For up to 6 months' entitlement, 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 entitlement beyond 6 months, 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 3 years.

Cash maternity benefits: The insured must have at least 15 days (or 100 hours) of insured employment in the last 3 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 3 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: The benefit is equal to 50% of the daily wage (100% for an extended illness or hospitalization) for the first 15 days; thereafter, 100% of the daily wage from the 16th day up to a maximum of 3 years; 4 years under certain circumstances.

The minimum daily wage (at the 100% rate) is equal to eight times the legal hourly minimum wage.

The legal hourly minimum wage is 52.17 dinars.

Maternity benefit: The benefit is equal to 100% of earnings. The benefit is paid for up to 14 weeks (including up to 6 weeks before the expected date of childbirth).

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

The legal hourly minimum wage is 52.17 dinars.

Workers' Medical Benefits

Benefits include medical treatment, surgery, hospitalization, medicines, laboratory services, ophthalmologic and optician services, some dental care including dental prostheses, functional and vocational rehabilitation, prostheses, thermal and specialized cures, and transportation.

Full medical care in government hospitals is provided free and for 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 assessed as more than 50% disabled, and old-age pensioners or disability pensioners with income less than the legal minimum wage).

Maternity benefits are reimbursed at 100%; hospital charges are limited to 8 days.

Dependents' Medical Benefits

Benefits include medical treatment, surgery, hospitalization, medicines, laboratory services, ophthalmologic and optician services, some dental care including dental prostheses, functional and vocational rehabilitation, prostheses, thermal and specialized cures, and transportation.

Full medical care in government hospitals is provided free and for 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 assessed as more than 50% disabled, and old-age pensioners or disability pensioners with income less than the legal minimum wage).

Maternity benefits are reimbursed at 100%; hospital charges are limited to 8 days.

Administrative Organization

Ministry of Labor and Social Security (http://www.mtss.gov.dz) 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 in technical schools and trainees, persons undergoing medical or vocational rehabilitation, some kinds of voluntary worker, wards of juvenile courts, students, and convicted persons working in prison workshops.

Source of Funds

Insured person: None; work injury pensioners whose permanent disability pension is more than the legal minimum wage contribute 2% of the pension.

Self-employed person: Not applicable.

Employer: 1% 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

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

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

The legal minimum hourly wage is 52.17 dinars.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to average earnings in the last 12 months times the assessed degree of disability.

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

The annual earnings for pension calculation purposes must not be less than 2,300 times the legal minimum hourly wage.

The legal minimum hourly wage is 52.17 dinars.

Constant-attendance supplement: Equal to 40% of the pension.

Foreign worker settlement: In the absence of a reciprocal agreement, a lump sum equal to three times the annual pension is paid to injured foreign workers who leave the country.

Workers' Medical Benefits

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

There is no limit to duration.

Survivor Benefits

Survivor pension: The widow receives 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 among them.

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 minimum old-age pension.

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

Other eligible survivors: 30% of the deceased's average earnings are 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 are paid to a full orphan and 30% to a dependent parent.

If all survivor benefits combined are less than the legal monthly minimum wage, the amount paid is increased to the value of the legal monthly minimum wage. (The legal monthly minimum wage is 10,000 dinars.)

All survivor benefits combined must not exceed 90% (100% if the deceased's pension was less than the legal minimum monthly wage) of the pension paid or payable to the deceased. (The legal monthly minimum wage is 10,000 dinars.)

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

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

The legal monthly minimum wage is 10,000 dinars.

Administrative Organization

Ministry of Labor and Social Security (http://www.mtss.gov.dz) 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.

Source of Funds

Insured person: 0.5% of gross earnings; contributions are paid on unemployment benefits.

Self-employed person: Not applicable.

Employer: 1.5% of gross payroll plus a lump-sum contribution equal to 80% of each laid-off worker's average monthly earnings in the last year for each year of employment (up to a maximum of 12 years), if the employee worked for the employer for more than 3 years.

Government: None.

Qualifying Conditions

Unemployment benefit: The insured is involuntarily unemployed; must have at least 3 years of contributions, including the 6 months before unemployment; must not receive income from any professional activity; must have been looking for work for at least 3 months; and must reside in Algeria. The previous employer must have paid all required social security contributions.

Unemployment Benefits

The benefit is calculated according to a reference salary that is equal to 50% of the sum of the insured's average monthly earnings in the last 12 months and the legal monthly minimum wage (10,000 dinars). The benefit is paid for 2 months for each year of contributions, up to a maximum of 36 months.

The minimum duration of benefit entitlement is 12 months.

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

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

The legal monthly minimum wage is 10,000 dinars.

Nonworking spouse's supplement: 500 dinars a month is paid if the insured receives an unemployment benefit of less than 7,000 dinars a month.

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 for pension calculation purposes.

Administrative Organization

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

National Unemployment Insurance Fund administers the program.

Family Allowances

Regulatory Framework

First and current law: 1941, with 1994 amendment.

Type of program: Employment-related system.

Coverage

Nonagricultural employees and social insurance beneficiaries.

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

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 25% of the cost of family allowances for employees.

Government: 75% of the cost of family allowances for employees; the total cost of family allowances for social insurance beneficiaries.

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; be disabled or ill; or be receiving an unemployment benefit, early retirement benefit, or old-age pension.

The legal monthly minimum wage is 10,000 dinars.

Family Allowance Benefits

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

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

Administrative Organization

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

National Social Insurance Fund administers the program.