The Syrian Minister of Finance in the caretaker government, Mohammad Abazeid, announced that the government will raise the salaries of many public sector employees by 400% next month.
This measure comes after the completion of the administrative restructuring of the ministries to enhance efficiency and accountability.
The increase is estimated to cost around 1.65 trillion Syrian pounds, or about 127 million US dollars, and it will be financed from the current state resources along with a mix of regional aid, new investments, and efforts to release frozen Syrian assets abroad.
Abazeid added to Reuters that this step is the first towards an emergency solution to the economic reality in the country, stating that the salaries for the current month for public sector employees will be paid this week.
Earlier, the leader of the new Syrian administration, Ahmed al-Sharaa, announced that a 400% increase will be applied to salaries in a move to improve living conditions.
Economic researcher Adham Qudaimati considered the salary increase in Syria to be natural and necessary, describing it as a “commendable” step representing the first measures the government must take to alleviate the economic burdens on citizens.
Qudaimati told Enab Baladi that the proposed increase, which raises the average salary from about $15 to nearly $70, is a form of “emergency measure” to meet a small part of the needs but is not sufficient.
He also pointed out that the state inherits from the previous government a “heavy legacy” of corruption and favoritism, stressing that reform begins with reevaluating how state resources are managed away from bribery.
Economic analyst Firas Shaabo stated that this increase has both positive and negative aspects, arguing that its negatives outweigh its positives. However, he said it is a “sound” step that could help avert a major economic disaster, as the government seeks to initiate reform.
At the social level, Shaabo indicated that this decision primarily aims to alleviate the growing discontent due to the significant rise in prices recently, especially in the fuel and transportation sectors, as the income of a Syrian family has become insufficient to cover basic needs.
Syria has suffered under the Assad regime from rampant corruption that has plagued most sectors, contributing to the deterioration of economic conditions.
The head of the caretaker government in Syria, Mohammed al-Bashir, stated that the central bank has only the Syrian pound “which is worth nothing,” adding in an interview with the newspaper “Il Corriere della Sera” on December 11, 2024, “We have no foreign currency and we are in a very dire financial situation.”