مجلة افاق علوم الادارة والاقتصاد
Volume 9, Numéro 1, Pages 359-371
2025-06-30

The Impact Of Wage Increases On The Purchasing Power Of Employees In Public Administration In Algeria



Authors : Dahmani Meriem .

Abstract

Wages are vital to individuals' well-being and economic stability. This study investigates the effect of wage increases on the purchasing power of employees in administrative public institutions, with a focus on evaluating the wage system. A field study was conducted at Dar Taquafa "Kateb Yacine" in Sidi Bel Abbes, using a questionnaire distributed to 61 employees. An analysis was performed using SPSS (version 26). The findings reveal that the current wage system is inadequate in meeting employees’ basic needs. Moreover, wage increases and income tax reductions have had a limited impact on enhancing employees' purchasing power due to inflation and high living costs.

Keywords

wage increase ; wage system ; purchasing power ; public sector ; income tax

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