Salaries in the Private Sector: A Closer Look at the Numbers
The spotlight is often on public sector salaries, but what about those in the private sector? We've got the 2023 figures.
The total remuneration of employees reached 64,059.9 billion dinars (Mtnd) by the end of 2023, up from 59,930.2 Mtnd the previous year. Gross salaries stood at 51,007.9 Mtnd (48,941.5 Mtnd in 2022), while employer social contributions amounted to 13,052 Mtnd (10,988.7 Mtnd in 2022).
This brings the total remuneration paid by the private sector to 41,044.8 Mtnd, taking into account the 23,015.1 Mtnd paid to state officials during the same period.
The largest share of remuneration was paid by non-financial companies (29,575.8 Mtnd). Financial companies' expenses totaled 3,380.9 Mtnd. Household accounts showed remuneration of 7,676.3 Mtnd, while individual enterprises paid out 6,797.6 Mtnd.
When we factor in the 7,904.5 Mtnd paid in income tax (IRPP), we're left with net salaries of around 43,103 Mtnd. Considering the number of active employees at the end of 2023, which stood at 3,416.2 million, we find an average monthly net salary of 1,051 dinars, higher than the 924 dinars reported by the National Institute of Statistics (INS) in its last employment and salary survey in 2022.
It's clear why revising the IRPP tax bracket will only affect a minority of income earners, as most salaries are modest. Significantly improving them would explode employment costs and destroy jobs. Leaving them at this level will push many households towards greater financial difficulties. The choice is difficult, and the reality is even more so.
