Algeria Approves Pension Hikes of Up to 10%

Algeria’s Cabinet approved new increases in retirement pensions, raising payments by up to 10% in a move aimed at supporting purchasing power for the country’s most vulnerable groups amid persistent inflationary pressures.

Under the decision, pensions of 20,000 Algerian dinars ($154) or less will be increased by 10%, while pensions exceeding that threshold will receive a 5% increase, according to the Cabinet’s statement. The measures were endorsed during a government meeting chaired by President Abdelmadjid Tebboune.

The pension hikes form part of a broader social policy drive intended to improve living standards for citizens on fixed incomes, particularly retirees who have been disproportionately affected by rising prices.

The pension decision follows a wider package of economic and social measures approved by the Cabinet as part of efforts to strengthen social justice and household incomes. During a meeting held on November 30, 2025, the government approved a significant increase in the national guaranteed minimum wage, raising it from 20,000 dinars to 24,000 dinars starting January 2026, the largest increase in several years.

The Cabinet also approved an increase in the unemployment allowance from 15,000 dinars to 18,000 dinars, aiming to ease financial pressures on job seekers and reinforce the country’s social safety net.

In parallel, authorities instructed relevant ministries to prepare proposals for reviewing and adjusting retirement pensions in line with inflation and declining purchasing power, with final approval to be discussed in a subsequent Cabinet meeting.

The General Union of Algerian Workers (UGTA) welcomed the government’s decisions, describing them as a positive response to the demands of workers and vulnerable social groups. The union said the measures reflect the state’s commitment to honoring its social obligations and protecting purchasing power.