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๐Ÿ‡น๐Ÿ‡ณ Tunisia /Economy & Trade

Inflation, taxation, and wages: Pressure mounts on Tunisians' purchasing power

From La Presse · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Tunisian employees face increasing pressure on their purchasing power due to rising inflation and taxes, despite periodic salary increases.
  • Economic expert Maher Belhaj explains that net salaries are significantly reduced by deductions, diminishing the impact of gross salary hikes.
  • Family consumption inflation rose to 5.5% in April 2026, driven primarily by food and clothing price increases.

La Presse de Tunisie reports on the growing strain on the purchasing power of Tunisian workers, a situation exacerbated by persistent inflation and rising fiscal and social charges. The article, drawing on insights from economic expert Maher Belhaj, explains that even periodic salary increases are failing to translate into tangible improvements in living standards. Belhaj points out a critical disconnect: the gross salary increase does not reflect the net amount received by employees after deductions for social security, retirement funds, and income tax.

This phenomenon, where deductions significantly erode salary hikes, leaves many, particularly senior staff who might see a nominal increase of 120 dinars, with a much smaller net gain. Consequently, the anticipated improvement in living conditions remains elusive, contributing to a sense of economic stagnation despite official announcements of wage adjustments. The article cites statistics from the National Institute of Statistics (INS) showing a rise in family consumption inflation to 5.5% in April 2026, up from 5% in March, with food prices climbing to 8.2% and clothing and footwear to 9.3%.

the rise in the gross salary does not reflect what the employee receives (net salary) after the deduction of various contributions (social security and retirement funds and income tax) to which salaries are subject, hence the erosion of the increase before it has a real impact on the employee's purchasing power.

โ€” Maher BelhajExplaining why gross salary increases do not significantly improve employee purchasing power in Tunisia.

From a Tunisian perspective, this economic narrative is a familiar and pressing concern. La Presse, as a national publication, reflects the daily realities and anxieties of its readership. The emphasis on the impact of fiscal and social contributions, and the role of intermediaries and speculators in driving up prices, highlights structural issues within the Tunisian economy. While international reporting might focus on macroeconomic indicators, the local perspective, as presented here, centers on the lived experience of citizens struggling to make ends meet. The article underscores the need for policies that not only address inflation but also ensure that salary increases provide genuine relief, rather than being absorbed by taxes and a complex web of deductions.

The main causes of this price increase are the dysfunctions of distribution channels and the domination of intermediaries and speculators on the market.

โ€” Maher BelhajIdentifying the key factors contributing to rising prices in Tunisia.
DistantNews Editorial

Originally published by La Presse in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.