The delay in disbursing October salaries to approximately 2.5 million Libyan employees has brought the issue of financial division back to the forefront. This development occurs amid challenges in implementing a unified salary scale announced by the government, which includes a 10% increase. The government, led by Prime Minister Abdul Hamid al-Dbeiba, had approved the unified scale on October 6, aiming to eliminate disparities in state employee salaries and abolish previous allowances and scales.
The implementation of the unified salary scale encountered obstacles due to technical and financial disputes regarding its overall cost and the ability of the general treasury to absorb the increases. As a result, the Ministry of Finance temporarily reverted to the previous disbursement system. To address the disagreements, the financial committees of the House of Representatives and the High State Council held a joint meeting. The meeting was attended by the Governor of the Central Bank of Libya, Fawzi Abu Khazam, Finance Minister Rashid Abu Ghaffah, and the Attorney General, Siddiq Al-Sour.
The Ministry of Finance had submitted the draft law for the unified salary system to the House of Representatives, with the aim of applying it starting in 2027. This implies that its approval still requires legal and financial consensus. According to data from the Central Bank of Libya, public spending during the first nine months of 2026 reached 88.6 billion dinars, with salaries accounting for 60.6 billion dinars, or 68.4% of the total.
The monthly average expenditure on salaries was approximately 6.7 billion dinars, with projections suggesting that the annual wage bill could approach 80.8 billion dinars if the current rate persists. The "Ratbek Hathi" system, designed to regulate employee lists and limit functional duplication, has registered around 1.75 million employees out of 2.5 million, as per project data.
This crisis highlights that unifying salaries is not solely dependent on approving a new scale but requires comprehensive political and financial agreement on managing revenues and expenditures. It also necessitates ensuring the regular disbursement of state employee salaries. The delay in salary disbursement has significant implications for the livelihoods of the affected employees and their families.
The unified salary scale aims to address existing disparities among state employees and provide a more equitable distribution of resources. However, its implementation faces challenges that need to be addressed through dialogue and cooperation among relevant parties. The involvement of key stakeholders, including the Central Bank and the Ministry of Finance, is crucial in finding a resolution to the current salary crisis.
The Libyan government faces the task of balancing the need for a unified salary system with the financial realities of the country. The situation requires careful consideration of the potential impacts on the economy and the well-being of Libyan citizens. The resolution of this issue will be closely watched by employees and other stakeholders who are affected by the delay in salary disbursements.
Key points
- The unified salary scale aims to eliminate disparities in state employee salaries and abolish previous allowances and scales.
