✍️ BY: Dr. Hana Saada
Algeria’s progressive wage reforms are transforming the lives of workers through systematic increases and comprehensive economic strategies, driven by President Tebboune’s leadership
Algiers, Algeria | April 30th, 2025 — As Algeria celebrates International Workers’ Day on May 1st, 2024, it stands as a testament to the country’s renewed commitment to improving the lives of its workforce. At the core of this commitment is the salary revaluation policy, a series of concrete measures that have substantially increased salaries and pensions, with a clear focus on strengthening the national economy, supporting the purchasing power of citizens, and promoting social justice—initiatives championed by President Abdelmadjid Tebboune.
A Decade of Economic Reforms and Salary Revaluation
In a series of four successive salary and pension increases between 2020 and 2024, Algeria has seen significant improvements in workers’ incomes. This wave of economic reforms, which has benefited over 2.8 million public sector employees and retirees, is an important part of President Abdelmadjid Tebboune’s government agenda. The policy aims not only to increase wages but also to safeguard citizens’ standard of living amidst the global economic challenges, especially inflation and rising costs of essential goods.
The most recent increase, implemented in May 2024, saw some pensions rise by as much as 48%, offering much-needed relief to vulnerable populations. This adjustment, along with the increase in unemployment benefits—from 13,000 DA to 15,000 DA—illustrates the government’s proactive approach in protecting the most disadvantaged.
A Vision for Doubling Salaries by 2027
President Tebboune’s vision extends beyond short-term increases, outlining a strategic roadmap to double salaries by 2027. The first phase of this initiative, which saw an increase of 47%, is just the beginning. The president has committed to completing the 100% increase within the next two years, aiming to bolster the purchasing power of Algerians while stimulating economic growth and reducing the nation’s reliance on imports.
The government’s ambition is reflected in a broader economic objective: raising the country’s GDP to $400 billion by 2027. This goal is set alongside efforts to reduce Algeria’s dependency on imports and encourage the growth of local production, which will further strengthen the national economy.
Ensuring Stability and Protecting Purchasing Power
While salary increases are vital, the state has also implemented several structural measures designed to improve Algeria’s economic stability. One key focus is currency stability, with the government aiming to bring the dinar’s exchange rate to 100 to the dollar, compared to its current rate of around 140. This effort is aimed at reducing the cost of imports and shielding citizens from the volatility of international markets.
Another critical aspect of the government’s strategy is inflation control, with the goal of maintaining inflation below 4%. This measure seeks to preserve the gains from salary increases, ensuring they are not eroded by rising prices.
The government has also been addressing the minimum national guaranteed wage (SNMG), which has been set at 20,000 DA since 2020. As inflation rises, discussions are ongoing regarding a potential increase to between 22,000 DA and 30,000 DA. However, experts emphasize that a sole focus on increasing the SNMG will not suffice. Instead, a comprehensive economic policy, including price regulation, tax reforms, and improved working conditions, is necessary to sustainably preserve the purchasing power of Algerians.
Direct Measures to Support the Public’s Purchasing Power
Alongside these salary adjustments, the government has implemented various measures designed to directly support the purchasing power of Algerians. These include the continuation of customs duty exemptions on essential food products, VAT exemptions on fixed internet services, and new housing programs, especially for rural areas. These initiatives aim to ease household expenses and ensure equitable access to essential goods and services.
The impact of these policies has been visible, with household disposable income increasing from 14.851 trillion dinars in 2019 to 22.710 trillion dinars in 2024. This rise has led to an increase in household consumption, and international institutions have recognized Algeria’s growing economy and improved per capita income, placing it among the emerging economies of Africa.
Economic Patriotism and National Engagement
Throughout his speeches, President Tebboune has emphasized the importance of economic patriotism in achieving sustainable growth. He has called on Algerian youth to engage in national production, particularly by prioritizing locally made products, which is essential to strengthening the country’s sovereignty and promoting long-term prosperity.
The wage revaluation policy is not merely about increasing salaries; it is a central pillar of a broader strategy for national development. While challenges remain—particularly in terms of controlling inflation and ensuring equitable distribution of wealth—the path taken since 2020 demonstrates the government’s unwavering commitment to improving the living standards of Algerians. By placing social justice and economic stability at the forefront, the Algerian government is forging a clear and impactful path toward a better future for all its citizens.
