Economie

Algerian Cabinet Approves Minimum Wage Hike, Energy Strategy

President Abdelmadjid Tebboune chaired a cabinet meeting today focusing on key sectors including hydrocarbons, mining, finance, knowledge economy, and startups. Following presentations and a review of government activities over the past two weeks, the President issued several significant directives.

Minimum Wage and Unemployment Benefits:

The minimum wage will increase from DZD 20,000 to DZD 24,000, effective January 2026. This marks the first increase of its kind in decades. Unemployment benefits will rise from DZD 15,000 to DZD 18,000, with the renewal requirement revised to an annual basis, renewable for further periods. The Ministry of Labor has been tasked with strengthening the role of the National Employment Agency to ensure transparency and efficient placement of job seekers.

The Minister of Labor will also submit proposals for increasing pensions and retirement benefits for review by the Ministry of Finance and presentation at the next cabinet meeting.

Hydrocarbons and Energy:

The cabinet acknowledged Algeria’s first-ever export of refined gasoline after decades of imports. National energy sessions will be held to update data and prioritize production and export strategies. Discussions with Mauritania will commence to establish Algerian fuel service stations within Mauritania. A national plan will be developed to regulate and monitor the consumption of petroleum products and increase strategic reserves. Prepaid fuel cards will be introduced, particularly in border regions. Efforts to complete the Hassi Messaoud refinery will be intensified to meet domestic demand and increase exports. Sonatrach’s exclusivity in importing and producing raw materials and oil derivatives, as well as marketing its products in Algeria, will be reinforced. The development of the tire manufacturing industry will be prioritized, with the import of 500,000 tires for trucks, buses, and passenger vehicles.

Startups and Knowledge Economy:

The importance of the African Startup Conference as a key platform for connecting African countries with the world was emphasized. The focus will be on intra-African partnerships to strengthen the startup economy as a foundation for building a diversified and robust economy based on science and innovation, with Algeria as a hub. Support for African youth connections will be prioritized to achieve mutual benefit, free from exploitation.

This meeting reflects the government’s commitment to promoting social justice, stabilizing the energy market, and developing the knowledge economy and startup initiatives to support overall development.

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