Tunisian General Labor Union Demands Compensation for Affected Workers Amid Tax Reform
The Tunisian General Labor Union (UGTT) has called on the Ministry of Finance to establish a compensatory subsidy for workers affected by the revision of the income tax bracket, introduced in the 2025 Finance Law. According to the organization, this compensation should cover the salary loss resulting from the application of the new tax bracket.
The UGTT has also reiterated its opposition to any salary reduction, highlighting the difficulties already faced by Tunisian executives due to low salaries, which encourage their emigration.
Impact of Tax Reform on Salaries
Article 36 of the 2025 Finance Law has led to a decrease in net salaries, particularly for senior executives, university professors, engineers, and doctors. The new tax bracket maintains an exemption for annual incomes up to 5,000 dinars but introduces higher rates for incomes above 40,000 dinars, reaching 40% for those exceeding 70,000 dinars. These changes aim to increase fiscal progressivity but have sparked criticism due to their impact on qualified professionals' incomes.
UGTT's Concerns
The UGTT's correspondence highlights the economic and social consequences of this tax reform. The organization believes that the addition of new tax brackets and the increase in rates for high-income earners exacerbate the tax pressure on certain workers, who are already facing unfavorable remuneration conditions. This situation, according to the UGTT, could exacerbate the brain drain of Tunisian talent abroad, a worrying phenomenon for the national economy.
