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December 15, 2025 | 1 month ago
10% and 5% increase in retirement pensions
Pensions will be increased by 10% and 5%. The Cabinet will decide on this matter on Sunday.
President Abdelmadjid Tebboune, Supreme Commander of the Armed Forces and Minister of National Defence, will chair the Council of Ministers meeting on Sunday dedicated to key measures, namely the revaluation of retirement pensions, the creation of two administrative districts and the acceleration of e-commerce.
2.5 million Algerians affected by pension increases
The issues addressed at this Council meeting are part of ongoing efforts to adapt the administration and economy to current needs. According to a statement from the Presidency of the Republic, the Council meeting began with a review of previous decisions and a presentation by the Prime Minister on the government's activities over the past two weeks. The Head of State then set out clear guidelines. On pensions, the Council decided on a 10% increase for pensions of 20,000 dinars or less, and a 5% increase for pensions above that amount.
These increases, eagerly awaited by 2.5 million pensioners, representing 15% of the retired population, honour the commitment made at the last Council of Ministers meeting, which announced these measures for this session. This commitment has been faithfully fulfilled, adding to previous increases linked to the minimum wage, which will rise to 20,000 DA in 2024. Priority will be given to the most vulnerable groups, namely the 800,000 widows, 180,000 mujahideen and their beneficiaries, whose average pension will rise from 18,500 to 20,300 DA. Several hundred billion DA will be injected into the economy, which should boost the local economy while rewarding the patience of the elderly, the pillars of the nation, who have been waiting for this breath of fresh air for months.
Maghnia and El Eulma, two new daïras
In terms of territorial organisation, the Council of Ministers approved two new daïras: Maghnia, in the wilaya of Tlemcen on the western border of the country, and El Eulma in Sétif, the industrial and agri-food heart of the east. In Maghnia, with its 200,000 inhabitants, the aim is to relieve pressure on a saturated border area where commercial activity is becoming increasingly important.
In El Eulma, with its 130,000 residents, the new daïra aims to boost a rapidly expanding textile and dairy industry. These creations bring the number of daïras added since 2020 to 20, out of a total of 553. The objective is clear: to relieve the burden on neighbouring administrations, bring public services, civil status, urban planning and health closer to citizens, and simplify procedures, while catalysing local investment.
e-commerce, a national priority
On another note, President Tebboune has made e-commerce a national priority. "A major challenge," he says, calling for a comprehensive mobilisation: enhanced cybersecurity, tax breaks and faster customs clearance. Transparency in trade flows remains at the heart of this digitalisation, a far cry from the opaque channels of the souk.
These injunctions extend Law 22-18 of 2022, which is still struggling to take off, as online sales currently account for only 5% of retail trade, or just over 300 billion Algerian dinars, compared to 20% in Tunisia, for example. However, the sector is picking up: Jumia doubled its turnover to 50 billion DA last year (2024), while local pure players such as Ouedkniss and Batolis now deliver to 48 wilayas thanks to the 5,000 relay points deployed by Algérie Poste.
Freeze on demolition of unauthorised dwellings during winter
Among the President's firm directives during this Council meeting was a halt to the demolition of unauthorised housing during the winter. Mayors who fail to comply risk immediate suspension, and walis must ensure strict compliance with the rules in force. This measure was taken to protect vulnerable families during the cold season.
On the economic front, the Ministers of Agriculture and the Interior have been instructed to protect producers from the effects of seasonal overproduction. The selective storage of surplus crops, such as olives, dates, vegetables and tomatoes, should stabilise prices and prevent massive losses for farmers. This directive echoes previous crises in which tonnes of produce were sold off at rock-bottom prices due to a lack of outlets, ruining many farmers in several regions of Algeria.
It is also part of a broader policy focused on agricultural subsidies, supporting irrigation, seeds and the creation of wholesale markets. It should be noted that the sector, which employs 20% of the working population and contributes 12% of GDP, aims to achieve food self-sufficiency by 2030. In short, this Council of Ministers is setting out tangible priorities, including purchasing power, protected agriculture, agile administration and accelerated digitalisation for a resilient economy.
December 15, 2025 | 
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