Council of Ministers Approves Wage Increase and New Economic Measures

President Abdelmadjid Tebboune chaired a Council of Ministers meeting that approved increases to the minimum wage and unemployment allowance, while reviewing key strategies across hydrocarbons, mining, finance, and the knowledge-based economy.

The Council gathered under the leadership of President Abdelmadjid Tebboune, Commander-in-Chief of the Armed Forces and Minister of National Defence, to examine several sectoral presentations. Following the agenda review and an update from the Prime Minister on recent government activity, the President issued a series of directives and decisions.

Raising the Minimum Wage and Unemployment Allowance

The Council of Ministers approved a significant revision of social support mechanisms:

• The guaranteed minimum wage will rise from 20,000 to 24,000 dinars, starting January 2026—the first major increase since the 2,000-dinar adjustment introduced in 2020.

• The unemployment allowance will increase from 15,000 to 18,000 dinars.

• President Tebboune instructed the Minister of Labour to abolish the six-month renewal requirement for the unemployment grant, confirming the payment period must last at least one year, renewable.

• The National Employment Agency (ANEM) must strengthen its role in ensuring transparency, identifying job seekers, tracking those integrated into the workforce, and maintaining an updated national database.

• The Minister of Labour must also submit proposals on increasing pensions and retirement benefits for review by the Ministry of Finance, then the Government Council, ahead of a final decision at the next Council of Ministers meeting.

Measures to Meet Domestic Demand for Petroleum Products

The President praised Algeria’s entry—for the first time since independence—into the export of domestically refined gasoline after decades of relying on imports. He then issued the following instructions:

• Organize national workshops on energy and hydrocarbons to update national data and refine priorities regarding production and exports.

• Task the Prime Minister with initiating consultations with relevant stakeholders to strengthen national energy security and support future planning.

The Council’s decisions reflect a renewed focus on social welfare, economic diversification, and stronger energy independence. Additional reforms and financial measures are expected to be finalized in the upcoming Council of Ministers meeting.