Algeria's president, Abdelmadjid Tebboune says the government will introduce unemployment benefits for young adults as the country struggles with a jobless rate of almost 15 %.
The president said on Tuesday that the payments to jobseekers aged between 19 and 40 would begin in March and it is aimed at preserving “ the dignity of young people.”
He added that there are over 600,000 unemployed in Algeria.
Those who are eligible will be able to collect the payments of about $100 (£73) a month, as well as some medical benefits until they find work.
The allowance is equivalent to nearly two-thirds the minimum wage of 20,000 dinars ($142)
In addition, taxes on consumer products for beneficiaries will be suspended.
Making the announcement, Mr Tebboune said that Algeria was the first country outside Europe to introduce such a benefit.
Algeria, Africa’s biggest gas exporter with around 45 million people, earns some 90% of its state revenues from hydrocarbons.
The youth payments is an execution of a portion of the 2022 budget.
In November, lawmakers voted to scrap generous state subsidies on basic goods that had long helped maintain social peace, but that had strained state budgets as energy revenues fell.