Minimum Wage Increase Revealed in Meeting between President and Minister of Social Affairs
Yesterday, during a meeting between President Kaïs Saïed and Minister of Social Affairs Kamel Madouri, the outlines of the minimum wage increase were revealed.
Two-Phase Increase
The minimum wage will undergo two increases: 7% in 2024 (with retroactive effect from May 1, 2024) and 7.5% in 2025 (from January 1, 2025). Although no specific details were provided regarding the Smig (minimum guaranteed interprofessional salary) and Smag (minimum guaranteed agricultural salary), it is likely that both categories of workers will be affected.
Calculations Based on Available Information
Based on the available information, here are the calculated increases for the minimum wage:
- 48-hour regime:
- Currently: 428,896 TND
- 2024: 458,916 TND
- 2025: 493,337 TND
- 40-hour regime:
- Currently: 360,692 TND
- 2024: 385,940 TND
- 2025: 414,886 TND
Additional Allowances
It remains to be seen whether the provisional complementary allowance for the Smig will be modified. Currently, it stands at 30,368 TND for the 48-hour regime and 30,000 TND for the 40-hour regime. If it remains unchanged, the Smig for the 48-hour regime will be 495,284 TND from May 1, 2024, and 523,705 TND from January 1, 2025. For the 40-hour regime, it will be 415,940 TND in 2024 and 444,886 TND from January 1, 2025.
Other Benefits
Additionally, there will be a monthly transportation allowance of 36,112 TND and a presence allowance of 2,080 TND.
Smag Increase
The Smag will increase from 17,664 TND to 18,900 TND in 2024 and 20,318 TND in 2025.
Implications for Employers and Workers
This new regulation has significant implications for employers and workers. Companies will need to adjust their budgets to comply with the new salary requirements. Social security contributions will automatically increase this quarter. Human resources professionals will also need to adjust their compensation policies to remain competitive in attracting talent.
Positive Impact on Retirees
Retirees will also benefit from this increase, as their pensions will be positively impacted. This is a welcome boost to purchasing power.
