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    Home MIDDLE EAST and NORTH AFRICA Tunisia

    Wage increases: their impact on the economy

    The Analyst by The Analyst
    May 5, 2026
    in Tunisia
    Wage increases: their impact on the economy


    Faced with the economic challenges that weigh on the daily lives of Tunisians, the government and social partners have sealed a stability pact. Between salary increases and tax reforms, Hafedh Amouri deciphers the challenges of a social calendar which extends until 2028.

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    Weather: stormy rain expected in the afternoon

    The professor of social law and former minister, Hafedh Amouri, provided decisive insight this Monday, May 4, 2026 on the airwaves of the Expresso show. For him, the decision to spread salary increases over three years goes beyond a simple technical arbitration. This is a major political and strategic choice whose primary objective is to guarantee social peace by avoiding the exhausting cycle of tensions and annual demands. This programming now provides essential visibility to businesses for their budget forecasts, while providing workers with a more predictable income trajectory.

    In detail of the figures, the expert underlines that the efforts made in the public sector and the civil service surpass those of the previous period. This new dynamic displays a desire to reduce disparities between the different levels, injecting a dose of social justice into the redistribution of wealth. On the private sector side, a uniform increase of 5% was approved for employees benefiting from collective agreements, a rate carefully calibrated so as not to suffocate the fabric of small and medium-sized businesses, the engine of the national economy. At the same time, the guaranteed minimum wage (SMIG) reaches a historic milestone by moving towards the threshold of 600 dinars by 2028.

    However, Hafedh Amouri calls for a lucid reading of these announcements. The figures communicated correspond to gross amounts, which means that the real gain in the citizen’s wallet will be burdened by social contributions and taxation. As an illustration, a revaluation displayed at 120 dinars could only represent a net increase of 70 to 80 dinars after deductions. The other essential part of this reform concerns seniors. In addition to the adjustment of pensions, a major tax measure will see the light of day in 2027: the progressive reduction of the tax base on pensions, a direct lever to support the purchasing power of former workers.

    Compliance with these new salary scales will not be optional. From January 1, 2026, all institutions, including those having already granted bonuses in advance, will have to comply with the new scales under the watchful eye of the labor inspectorate. But the former minister warns of the pitfall of inflation. If domestically oriented companies are tempted to pass on these costs in their selling prices, the beneficial effect of the increases could quickly evaporate. On the other hand, exporters, prisoners of fierce international competition, will have to absorb these costs without being able to adjust their prices.

    In conclusion, Hafedh Amouri insists on the fact that the facial increase in wages cannot be the only remedy to the crisis. For these measures to be truly effective, they must be accompanied by profound structural reforms. Controlling prices and improving the quality of essential public services, such as transport, health and education, constitute the hidden but vital side of purchasing power. The success of this 2026-2028 social triennium will therefore be based on this fragile balance between monetary revaluation and control of the cost of living.





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