Despite the 50% increase, the flames of high prices are devouring Syrians’ salaries

The economic policies followed by the Syrian regime further deteriorate the standard of living of citizens (Al Jazeera)

Damascus -

“They underestimate our minds. This expected increase in salary next month will translate into a decrease in the face of the rampant high prices witnessed in goods, from bread to luxuries.”

With these words, Hossam (32 years old), a civil engineer and employee in the public sector in Damascus, comments on the expected increase in the salaries of employees and workers in the public sector in areas controlled by the Syrian regime next month.

He added in an interview with Al Jazeera Net, "We need to increase the salary tenfold in order for people to live in this country to be easier for us."

On Monday, February 5, Syrian President Bashar al-Assad issued Legislative Decrees No. (7) and (8) for the year 2024, which include a 50% increase in salaries and wages for workers and employees in the public sector, whether civilians, military, contractors, daily workers, and pensioners, and they are considered valid. Starting next month.

The decision coincided with the Ministry of Internal Trade and Consumer Protection raising the selling price of a bundle of bread by 100% in public and private bakeries, and raising the selling price of a liter of diesel fuel for bakeries to 2,000 liras instead of 700 liras.

For his part, the Minister of Finance in the Syrian regime's government, Kenan Yaghi, indicated in a statement to the local newspaper Al-Watan that the costs incurred by the government after this increase amounted to 2.5 trillion Syrian pounds, explaining that the minimum wage amounted to 280 thousand pounds ($19).

A queue in front of the automated bakery in Bab Touma in Damascus (Al Jazeera)

The fires of high prices

The increase in wages and salaries of workers and employees in the public sector in regime-controlled areas comes amid a gradual and continuous rise in the prices of basic food and consumer goods since the beginning of this year.

Syrian economist and researcher at the London School of Economics, Zaki Mahshi, says, “This increase is not sufficient, because with the increase added to the salary next month, the income - at best - will only be able to cover 10% of the needs of the families of workers in the public sector to exceed the line.” Poverty."

He added in an interview with Al Jazeera Net that the increase was ineffective because it did not include the majority of workers in areas under regime control, who are employees and workers in the organized and unorganized private sector, and therefore it is an increase that affects a small group of Syrians.

The Syrian economic expert believes that this increase will be eroded, and that part of this month’s salaries (before the increase) will also be eroded as a result of the continued rise in prices, whether for bread prices (the price of which has increased by 100%) or the gradual rise in the prices of energy carriers such as fuel, diesel and gasoline, because the increase The prices of energy carriers will lead to an increase in the prices of most commodities in the market, and thus the purchasing power of the salary will be eroded very quickly.

As for the expected effects of this increase on the economy, Mahshi says, “The increase will lead to only one result, which is an increase in cash liquidity in the Syrian pound in the market. This increase, with the absence of actual production and the absence of income from foreign currencies as a result of the absence of exports abroad, will in turn lead to inflationary pressures.” On the Syrian pound, and therefore the government will try to alleviate these pressures by setting ceilings for short-term withdrawals, and setting ceilings for transferring funds between governorates, in a futile attempt to control cash liquidity.”

He continues, "But this government policy, of course, will not succeed, which will greatly increase the possibility of the deterioration of the Syrian pound and the weakening of its purchasing power, and thus (an increase in) the level of poverty."

Zaki Mahshi: Government policy will lead to a decline in the Syrian pound and an increase in the level of poverty (Al Jazeera)

Absorbing anger

Regarding the source of funding for the increase added to salaries, the researcher says, “The government does not have sufficient resources to cover this increase, so the increase was accompanied by a number of decisions, including the suspension of the decree on incentives and increases in the public sector for employees and workers to transfer part of the surpluses resulting from the suspension of this work.” The decree is to finance the increase in salaries, and this increase is financed primarily by liberalizing the prices of major commodities, including bread and energy prices.”

Mahshi concludes by saying, “In short, government work salaries, even after the increase, are still very far from saving employees from living at levels below the poverty line, and the Syrian regime used the salary increase as a means of negotiation with citizens to absorb their anger as much as possible, but the policies of increasing salaries and financial and monetary policies The policies being followed are short-term, and will not lead to an improvement in the standard of living. On the contrary, they will further deteriorate the standard of living of Syrians as a result of the many factors I mentioned above.”

Over the past two months, the prices of food and consumer goods have witnessed an increase of 25%, according to a report by the official Al-Baath newspaper, where a member of the Damascus Chamber of Commerce, Yasser Ikrim, said, “The purchasing power of the citizen after the recent increase in salaries is still weak, as he needs a good improvement in his living income in order to The gap between income and inflation disappears.”

Experts believe that increasing the salaries of government employees in Syria is an insufficient step to solve the living crisis (Al Jazeera)

Reality in numbers

Economists believe that the recent accompanying increase in salaries will double the living burden on Syrians due to the increase in prices (a 100% increase in the price of bread and an increase in energy prices) and a weakness in purchasing power, especially for segments not included in the increase (workers in the private sector).

The average salaries and wages in the public sector after the increase will range between 375 and 400 thousand liras (between 25 and 27 dollars), while the minimum wage in the public and private sectors will reach 280 thousand liras (19 dollars).

Sanaa (38 years old), a sports teacher in a primary school in the Damascus countryside, says that these salaries are “barely enough to buy a kilogram of veal for 140,000 liras ($9.5), a kilogram of coffee for 100,000 liras ($7), and two kilograms of rice.” For 60 thousand liras ($4) after the increase and price increases.”

The teacher indicated in an interview with Al Jazeera Net that her monthly salary after the increase will barely be enough for three or four days at most.

A study conducted by the local newspaper "Qasioun" revealed that the average cost of living for a family of 5 members in regime-controlled areas had risen to more than 12 million liras (about 850 dollars) by the year 2024.

The study, issued last December, indicated that the average cost of living tripled during 2023, while wages are no longer able to cover only 1.5% of living costs.

About 12.1 million Syrians (about 50% of the population) suffer from food insecurity, and another 2.9 million are at risk of sliding into hunger, according to the latest reports of the United Nations World Food Programme.

Source: Al Jazeera