Salary Increase of 5% Announced, But Net Gain May Be Lower

A recent announcement of a 5% salary increase may not translate to a net gain for beneficiaries, according to expert and tax consultant Mohamed Salah Ayari. The increase is calculated on the gross salary, before deductions of social contributions and taxes.

Speaking on Jawhara FM, Ayari explained that the actual amount received will depend on the prevailing tax system, based on a progressive tax scale. "The tax rates vary according to income brackets and cannot be circumvented," he emphasized.

The salary increase, which will be implemented over the years 2026, 2027, and 2028, is based on three separate decrees published in the Official Gazette. These decrees cover different categories: government agents, local authorities, and public establishments; public enterprise agents subject to specific statutes or collective agreements; and judges, whether from the judicial, administrative, or Court of Auditors orders.

Ayari recalled that the negotiations leading to this decision were marked by divergent positions. Initially, lawmakers had advocated for a 7% increase, while the former Minister of Finance estimated that such a level would be unsustainable, suggesting a cap of 4% due to economic constraints.

In this context, the final 5% rate appears as a "predictable" compromise, according to the expert, taking into account budgetary balances and the state's financial capabilities. He stressed that these arbitrations reflect the need to balance improved purchasing power and maintenance of public finances stability.