Syria's caretaker government shocks citizens with 400% salary hike
- Syria's finance minister announced a 400% increase in public sector salaries to implement administrative restructuring.
- The increase will affect approximately 1.3 million registered public sector employees, aiming to eliminate fictitious positions.
- These measures are part of the caretaker government's broader strategy to stabilize Syria's economy after over a decade of conflict.
In Syria, the caretaker government announced a significant salary increase for public sector employees, aimed at addressing ongoing economic challenges. On January 5, 2025, Finance Minister Mohammed Abazeed reported that salaries would rise by 400% next month, following an administrative restructuring of ministries to enhance efficiency. This change is estimated to cost approximately 1.65 trillion Syrian pounds, funded through existing state resources alongside potential regional aid and new investments after unfreezing Syrian assets located abroad. Moreover, the increase is deemed essential as many public sector workers were previously earning around US$25 a month, placing them below the poverty line. This wage reform is part of a broader strategy to stabilize the Syrian economy, which has suffered due to 13 years of conflict and international sanctions. The ministry's measures include a comprehensive evaluation of around 1.3 million registered employees to eliminate fictitious positions and ensure only qualified individuals receive the salary increase. The central bank currently faces liquidity issues due to the devaluation of the Syrian currency, but the government remains optimistic about economic recovery. Abazeed mentioned that the central bank possesses enough funds for immediate expenses and anticipates recovering up to US$400 million in frozen assets abroad, which would contribute to financing the salary increments. Additionally, the caretaker government is considering tax reforms, aiming to provide taxpayers relief from penalties while working towards a more equitable tax system in the near future. Overall, these restructuring efforts are designed not only to provide immediate financial relief but also to lay the groundwork necessary for rebuilding Syria's economy after years of instability. Authorities are hoping that future investments and regional cooperation will enhance the state treasury, allowing the government to continue managing public sector salaries and stimulate economic growth in the coming years.