Algeria boosts wages and benefits amid economic strain
Government approves higher social payments for 2026 amid persistent inflation, weak purchasing power, and calls for broader reforms
ALGIERS, Algeria (MNTV) — Algeria has announced substantial increases to the national minimum wage and unemployment allowance, a move aimed at cushioning citizens facing soaring living costs and prolonged economic strain.
President Abdelmadjid Tebboune approved the measures following the latest Council of Ministers meeting, positioning them as part of the state’s ongoing social support efforts.
Under the decision, the Guaranteed National Minimum Wage will rise from 20,000 to 24,000 dinars starting January 2026, according to APA News.
While officials describe the 4,000-dinar increase as a meaningful adjustment, many workers argue it merely offsets only a fraction of the steep purchasing power losses accumulated in recent years.
Unofficial inflation on essential goods has remained above 9 percent, leaving households struggling to keep pace.
Employees and labor observers say the wage hike, though welcomed, risks being quickly absorbed by rising food, transport, and housing costs.
“It’s a historic increase on paper, but it won’t last long in real life,” one worker noted, reflecting widespread skepticism.
Unemployment benefits will also be raised from 15,000 to 18,000 dinars. The government plans a full review of the unemployment system, extending eligibility to a minimum of one year with possible renewal.
The overhaul seeks to improve regulation of the program, which critics say has been weak in helping job seekers transition to stable employment.
President Tebboune further ordered an updated national database to better distinguish between the officially unemployed and those working informally—an issue that has long distorted labor-market statistics and hindered policy planning.
Analysts caution that, without a comprehensive anti-inflation agenda or deep structural reforms, these social measures remain temporary fixes rather than durable solutions.
Economists warn that repeated adjustments to wages, benefits, and pensions may continue to lag behind real price increases unless the core drivers of inflation and economic stagnation are addressed.
The Ministry of Labor has also been instructed to propose increases to pensions and retirement allowances—another sensitive area affecting millions living close to or below subsistence levels.
Experts say the central questions now revolve around fiscal capacity and long-term impact: whether the state can sustainably finance these commitments, and whether the latest increases will meaningfully slow the gradual impoverishment of Algerian households.
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