A New Social and Economic Threshold: Algeria Raises the Minimum Guaranteed National Wage (MGNW) to 24,000 DA and Unemployment Allowance to 18,000 DA
✍️ BY: Dr. Hana Saada
Algiers – December 2025 – In a move reflecting a decisive shift in Algeria’s social and economic architecture, the Council of Ministers, chaired on Sunday in Algiers by President Abdelmadjid Tebboune, approved increases to the national minimum wage and the unemployment allowance, with both measures set to come into force in January 2026. The decision marks one of the most substantial adjustments of its kind in decades, reaffirming the State’s commitment to strengthening social protection mechanisms and enhancing citizens’ purchasing power in a rapidly evolving economic environment.
After reviewing the agenda, the summary of previous council decisions, and the Prime Minister’s briefing on governmental activity over the past two weeks, the President issued a series of instructions and policy directives touching upon employment, energy, industrial development, and regional economic partnerships.
At the heart of the session stood the long-awaited revision of the Minimum Guaranteed National Wage (MGNW), which will rise from 20,000 DA to 24,000 DA starting January 2026. This adjustment is the most significant upward revision since 2020, when the minimum wage was increased by only 2,000 DA. In parallel, the unemployment allowance will be raised from 15,000 to 18,000 DA, a measure intended to provide more dignified support to job seekers during their transition toward the labor market.
President Tebboune instructed the Minister of Labour to revisit the renewal requirement of the unemployment-allowance file every six months, recalling that the Council had initially set the payment duration to a minimum of one year, renewable. He also tasked the Ministry with submitting proposals for the revaluation of pensions and retirement allowances—proposals that will undergo a financial review before being presented for final approval during the next Council of Ministers meeting.
Beyond monetary support measures, the President stressed the need to reinforce the National Employment Agency’s role in ensuring transparency, efficiency, and fairness in the orientation of job seekers. He underlined the importance of maintaining an updated national database distinguishing active workers from unemployed individuals, thereby ensuring integrity and precision in employment policy.
The meeting also delivered far-reaching decisions concerning energy policy, hydrocarbons governance, and Algeria’s regional economic footprint. Following the country’s unprecedented entry into the export market of nationally refined gasoline—ending decades of import reliance—the President called for the organization of National Conferences on Energy and Hydrocarbons. These conferences aim to reassess sectoral data and establish renewed priorities for production, storage, and export.
In a strategic regional initiative, President Tebboune ordered the launch of negotiations—under the supervision of the Prime Minister—with Mauritania to establish Naftal service stations on Mauritanian territory, deepening bilateral cooperation and expanding Algeria’s energy presence in the Sahel-Saharan region. The Minister of Energy was additionally directed to design a national policy for the rigorous management and consumption of petroleum derivatives, with emphasis on boosting strategic storage capacities. This includes the preparation of prepaid fuel cards, particularly for border regions, and intensifying efforts to complete the Hassi Messaoud refinery to fully meet domestic demand while increasing export capabilities.
A further strategic reinforcement concerned Naftal, which will consolidate its exclusive role in importing and producing raw materials and oil derivatives, positioning external companies as primary clients in the domestic market.
The Council also turned its attention to industrial diversification, particularly the pneumatics sector, where the President insisted that Algeria accelerate its progress. He instructed the Minister of Industry to produce an urgent market study. Pending the development of a national production strategy, the Council approved the importation of 500,000 tires for trucks, buses, and private vehicles.
Finally, in anticipation of the African Conference of Start-Ups, President Tebboune reiterated Algeria’s ambition to become a continental incubator for science-driven, innovation-based economies. He underscored the strategic importance of this event, noting that it represents a vital artery linking African nations to global innovation pathways. He renewed his call for a stronger African-African partnership model—one built on mutual development rather than exploitation—and urged continuous efforts to deepen ties among the continent’s youth to build a resilient, competitive, and knowledge-based African economy.
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