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Update: Tuesday, 6 January 2009    

Algéria : The wages’ increase will cost 500 billions DA

Saturday May 13 2006.

A report issued by the ministry of work and social security, under the title of “The Problematic of Wages in Algeria”.

Based on two work groups, suggests the necessity of the revision of wages’ ladder of the economic companies, adding that the cost of wages’ increase will worth 500 billions dinars, and that the clause 87 bis will double the mass of wages.

The report explains that concerning the public service, the annual financial impact to fix the minimum wages on one basic salary will reach 38 billion dinars in case all basic salaries that are less than 10 000 dinars and which cover 1,3 million employees from 1,5 million employees, were regulated.

And according to the same report, the maintenance of the existing differences in the wages grid of the public service will be reflected by an annual financial impact that worth 500 billions DA, the sum that equals the wages mass of 2005 which was 600 billions DA.

The report points out that the application of such measures will lead to double the current total wages mass. The report, which was on the basis of statistics taken from the national department of statistics, explains that the average of the national monthly wages in economic sector for the period between 1992 and 2005 has shifted from 7768 DA to 27364 dinars, comparing to average monthly wages of 2002 with 23687 dinars.

The process of analysing the wages’ situation on the basis of accomplished investigations monitored by the ministry of work and social security between 2002 and 2005, showed that the average of the wage in private sector is weaker compared with the public sector, and in 2002, the average of the monthly salary in the private sector was 18400DA compared with 27460DA in the public sector, meanwhile was estimated at 20030dinars in 2005 compared with 27460dinars in the public sector.

The grid of salaries in the public and private sectors are fixed on the agreement basis between socio-professional partners at the company level or at each branch of its activities’ branches.

A. Souad — El-Khabar

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