Tunisia is preparing for a new era in minimum wages, with a historic increase in the SMIG (Guaranteed Interprofessional Minimum Wage) over the next two years. This measure, aimed at improving the living conditions of workers, comes in a tense economic context where purchasing power is at the heart of national concerns. Here’s an overview of the upcoming changes and their potential impacts on workers and businesses.
A Two-Phase Increase
In 2024, workers will benefit from a first increase of 7%, applicable retroactively from May 1, 2024. In 2025, a further rise of 7.5% will be introduced starting January 1, marking significant progress over a short period. These adjustments aim to align wages with the cost of living and to support households amid ongoing inflation concerns.
Concrete Changes for Workers
The SMIG, which affects hundreds of thousands of Tunisian workers, will vary based on hourly regimes. For those working 48 hours a week, the base salary will increase from 428.896 TND currently to 458.916 TND in 2024, before reaching 493.337 TND in 2025. In 2024, the base salary for a 40-hour regime will rise from 360.692 TND to 385.940 TND, and then to 414.886 TND the following year.
These increases do not include bonuses and other allowances, such as the temporary supplementary allowance, currently estimated at around 30 TND. If this remains unchanged, the total salary for a minimum wage worker on a 48-hour regime could approach 495 TND in 2024 and exceed 523 TND in 2025. For a 40-hour regime, these amounts would reach 415 TND in 2024 and about 445 TND the following year.
A Boost for the Agricultural Sector
The agricultural sector, often overlooked in wage discussions, will also see an evolution in its guaranteed minimum wage (SMAG). This will increase from 17.664 TND per day to 18.900 TND in 2024, and then to 20.318 TND in 2025. This progression reflects the authorities’ commitment to ensuring fair treatment for all workers, including those in the most vulnerable sectors.
An Economic Impact to Monitor
While these increases aim to improve purchasing power, they also pose challenges for businesses. Employers will need to adjust their budgets to absorb these hikes, which could affect their competitiveness, especially in labor-intensive sectors. Direct wage costs are expected to rise by about 15% over two years, likely prompting companies to reassess their management and productivity strategies.
However, it is crucial to emphasize that these increases do not only affect wages. The multiplier effect on the economy could be significant, stimulating domestic demand and encouraging consumption. Workers with increased purchasing power will be able to inject more money into the economy, which could, in turn, benefit several sectors, particularly retail and services.
Finding a Balance Between Inflation and Growth
The increase in the SMIG comes in a context of persistent inflation, with rates fluctuating between 6% and 7% in recent years. Authorities will need to ensure that these wage increases do not trigger an inflationary spiral, where prices rise in response to wage increases, thus diminishing the positive impact on purchasing power.
One of the main challenges will be to maintain a balance between wage increases, controlling inflation, and preserving business competitiveness. Policymakers will need to closely monitor price developments and adjust economic policies as necessary to avoid any adverse effects on growth.
Conclusion: A Step Towards Better Social Justice?
The increase in the SMIG in Tunisia for 2024 and 2025 represents a significant advancement in the fight for improved living conditions for workers. While challenges abound for both businesses and the economy at large, this measure constitutes an important step towards better social justice and greater wage equity.
The coming months will be crucial to assess the impact of these increases. Businesses will need to adapt, authorities will have to monitor inflation, but for many workers, this increase is a glimmer of hope in an often difficult economic landscape. The key will lie in the country’s ability to find a balance between social progress and economic stability.
