The minimum wage increase from October 2025
Effective from 1 October 2025, the minimum hourly wage is set at 337.00 dinars per hour of work, excluding taxes and mandatory social security contributions.
Given that the right to a minimum wage is granted in proportion to the actual time worked, the monthly amount of the minimum wage (expressed in net terms, i.e., excluding taxes and contributions) is calculated by multiplying the applicable minimum hourly rate at the time of payment by the number of hours worked in the relevant month.
For example, if wages for September 2025 are paid in October 2025, the employer is obligated to pay 59,312.00 dinars (176 hours × 337.00 dinars), assuming the employee worked full time and fulfilled all job responsibilities.
The net minimum wage for the fourth quarter of 2025 (if paid between October and December 2025) will be as follows:
- October (184 working hours): 62,008.00 dinars
- November (160 working hours): 53,920.00 dinars
- December (184 working hours): 62,008.00 dinars
It is important to note that an increase in the non-taxable portion of wages reduces the personal income tax base. However, any increase in the minimum wage also leads to a proportional increase in the base for the calculation of taxes and social security contributions.
In accordance with applicable legislation, employers are also required to provide additional payments beyond the minimum wage, including but not limited to:
- compensation for meals (hot lunch),
- vacation pay,
- bonuses for years of service,
- payment for overtime and night shifts.
These additional payments are not considered part of the minimum wage and must be paid on top of it.
Please be advised that these changes apply to all employers and employees. It is therefore strongly recommended to proactively align your organization’s human resources and financial policies with the new legal requirements in a timely manner.
