The Tunisian government published wage increases for state employees, the public and private sectors, and retirees, in an effort to support purchasing power in light of the rise in prices and the cost of living.

The increases were published today, Thursday, in the Official Gazette, coinciding with the celebration of Labor Day tomorrow, Friday.

The increase in basic wages is estimated at 5%, and will take effect retroactively on January 1, 2026, according to the German News Agency “DPA”.

The 2026 Finance Bill includes wage increases over a three-year period between 2026 and 2028 at a cost of more than $300 million.

Prices in Tunisia are witnessing an unusual rise in goods, vegetables, meat, fish, services, and housing, while the inflation rate, according to the last update last March, reached 5%.

The Labor Union, the largest union in Tunisia, criticized the authority’s approval of increases outside social negotiations and also warned of the absence of effective policies to control prices and the high cost of living.

Social dialogue between the main union, which includes hundreds of thousands of workers, and the government has been virtually stalled since 2023.