Work out net pay and the cost of an employee

Enter the monthly gross salary, or the net pay you want to give. The calculator applies CNAS contributions and the income tax scale, then shows the net pay, the total cost to the business and each step of the calculation.

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Gross pay, net pay and employer cost

For a monthly salary: CNAS contributions, income tax (IRG) withheld from pay, the net paid to the employee and the total the business pays.

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Base salary plus bonuses paid every month.

For the employee

Gross salary40,000 DA
Employee CNAS contribution (9%)−3,600 DA
Taxable pay36,400 DA
Income tax (IRG) withheld−2,272 DA

Net pay34,128 DA

For the employer

Employer contribution (25%)+10,000 DA
Social welfare fund (0.5%)+200 DA
Total paid to CNAS (34.5%)13,800 DA

Total cost to the employer50,200 DA

Contributions: 34.5% of gross pay, of which 25% for the employer, 9% for the employee and 0.5% for the social welfare fund (Executive Decree 15-236, Official Journal no. 49 of 16 September 2015). Income tax: scale, 40% relief and exemption up to 30,000 DA under article 104 of the Direct Taxes Code, as worded by the 2022 Finance Act (Official Journal no. 100 of 30 December 2021) and unchanged by the 2023 to 2026 Finance Acts. Indicative estimate, to be confirmed against your actual file.

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The calculation, step by step

  1. Employee contribution: 9% of 40,000 DA, that is 3,600 DA.
  2. Taxable pay: 40,000 DA − 3,600 DA = 36,400 DA.
  3. Income tax on the monthly scale:
    • 20,000 DA to 40,000 DA (23%): 3,772 DA
    Total before relief: 3,772 DA.
  4. 40% relief on this tax, between 1,000 DA and 1,500 DA: 1,500 DA. Tax left: 2,272 DA.
  5. Income tax withheld from pay: 2,272 DA.
  6. Net pay: 40,000 DA − 3,600 DA − 2,272 DA = 34,128 DA.
  7. Cost to the employer: 40,000 DA + 10,000 DA + 200 DA = 50,200 DA.

Excludes bonuses paid for a period other than the month: they have their own income tax withholding, at 10%. The calculator applies contributions and income tax to the whole gross amount entered. Amounts rounded to the dinar.

  • CNAS (the social insurance fund for salaried workers) receives 34.5% of gross pay: 9% withheld from pay, 25% paid by the employer and 0.5% for the social welfare fund.
  • Income tax (IRG) is calculated on taxable pay, that is, gross pay minus the 9% deduction. Up to 30,000 DA of taxable pay a month, the employee pays no income tax.
  • Above that, the progressive scale applies, followed by a 40% relief on the tax, between 1,000 and 1,500 DA a month. Between 30,000 and 35,000 DA, a smoothing formula lowers the tax further.

Frequently asked questions

How much does an employee on the minimum wage cost?

At the 2026 SNMG (national minimum wage) of 24,000 DA gross a month, the employee receives 21,840 DA net: 2,160 DA of employee contribution and no income tax. The business pays 30,120 DA in total, including 6,120 DA of employer contribution and social welfare fund.

Will my employee pay income tax?

Not if taxable pay, after the 9% CNAS deduction, stays at or below 30,000 DA a month, which means a gross salary of 32,967 DA at most. Above that, income tax follows the progressive scale and you withhold it from pay.

Are bonuses included?

Bonuses paid every month are: add them to the gross salary. Bonuses paid for another period, such as a quarter or a year, have their own income tax withholding at 10%, and the calculator does not handle them.

Who pays the contributions and the income tax?

The employer. You withhold the employee's share and the income tax from pay, then pay the contributions to CNAS and the income tax to the tax office with form G n°50, or G n°50 ter under the IFU regime. Our guide to hiring your first employee gives the deadlines.

Written and checked by the Neuron Cowork team, Dely Brahim. Checked on .

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