Seven Thousand Dinar-Worth Pension For Retired Sick Workers After Five Years Of Service!

The newly-adopted retirement law which is to come into force starting as from early January 2017, stipulates that those workers who have not completed 15 years of work and who haven’t fulfilled the payment of relevant contributions due to illness or absence from work, will secure a pension estimated at 7.5% deriving from the payment of their social security contributions.

Furthermore, the new law also allows those workers who exercised only for a period of just 5 years, to benefit from a retirement allowance of 7,000 Dinars per month.

To this effect, the Minister of Labor, Employment and Social Security, Mohamed El Ghazi, affirmed that the law on retirement aimed to adapt the pension system in Algeria with the social-economic developments and to preserve the resources of the National Social Insurance Fund for Employees (CNAS).

During the presentation of the bill before the Council of the Nation on Tuesday, Mr El Ghazi pointed out that the retirement law “aims to adapt the legislative reference of management of the CNAS Fund and to ensure its smooth continuity, by keeping abreast with the ongoing social, economic and demographic changes”.

The National Retirement System is one of the main foundations of national inter-generational solidarity, the Minister stated, adding that the scheme provided for the allotment of more than 3 million pensions.

The new provisions introduced in this law are geared to “revamping the CNAS Fund and avoiding bankruptcy within the framework of social justice” and “enshrining the principle of the much-needed inter-generational solidarity,” the Minister emphasized.

As a recall, the bill on retirement, which has been adopted by MPs of the People’s National Assembly (Lower House of Parliament) provides for maintaining the minimum retirement age at 60 years and the possibility for working women to retire at 55 years at their own request.

MPs of the Lower House also adopted an amendment that provides for a two-year transition period enabling employees to benefit from retirement pension provided that they have worked for at least 32 years and have paid social security contributions.

The amendment pertains to those employees aged 58 and more in 2017 and 59 in 2018.