Syria announces 400% pay hike for public sector employees amid reforms
3 Min Read
The salary adjustment follows a thorough review of the public sector workforce, which includes around 1.3 million employees.
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A man riding a horse-drawn carriage passes by members of the armed forces and former rebels, who overthrew Bashar al-Assad's government and now serve in the new Syrian government, as they prepare for a military parade in downtown Damascus, Syria, Friday, December 27, 2024. (AP)
Syria's Finance Minister Mohammed Abazeed announced on Sunday that public sector employees will see their salaries increase by 400% starting next month.
The move comes as part of an effort to stabilize the country's fragile economy following over a decade of war and sanctions.
The planned salary hike, expected to cost approximately 1.65 trillion Syrian pounds ($127 million), will be funded through a combination of existing state resources, regional support, new investments, and efforts to reclaim Syrian assets currently frozen abroad.
Speaking to Reuters on Sunday, Abazeed described the increase as "the first step toward an emergency solution to the economic reality in the country."
Reforms to address inefficiency
The salary adjustment follows a thorough review of the public sector workforce, which includes around 1.3 million employees.
The government plans to remove ghost workers and focus on retaining individuals with the skills and qualifications necessary for reconstruction.
Salaries under the previous administration were as low as $25 per month, leaving most Syrians below the poverty line, Abazeed noted.
This week, public sector staff are expected to receive their monthly wages as the government begins implementing its broader strategy to enhance efficiency and accountability within ministries.
Funding strategies
Syria's central bank is grappling with liquidity issues, as the majority of its reserves are in local currency, which has suffered significant devaluation.
Nevertheless, the finance minister expressed optimism, citing promises of support from regional and Arab countries.
He mentioned that forthcoming investments would bolster the state treasury, helping to finance the salary increases.
The government also aims to recover up to $400 million in frozen assets abroad to cover immediate expenditures.
Read more: Syria's new leadership urges Qatar to support lifting of US sanctions
Tax reform
In parallel with these measures, the government is planning a major overhaul of the tax system.
Abazeed stated that discussions are underway to exempt taxpayers from penalties and interest where possible, with the ultimate goal of creating a fairer tax system.
A draft proposal is expected within four months, and the government aims to have a finalized framework by the end of the year.
"By the end of this year, we expect having a well-designed tax system that takes the interests of all taxpayers into account," Abazeed said.
