The unified salary scale has been a topic of discussion in Libya's economic and social circles. The government has adopted a unified salary scale for employees in various sectors and administrative units funded by the state's treasury. This move aims to eliminate multiple salary scales and related financial benefits. However, Dr. Saleh Ibrahim, founder of the Libyan Academy for Graduate Studies, believes that organizing salaries cannot be separated from the country's overall economic and financial situation.
Dr. Ibrahim emphasizes that any salary system should be based on clear economic data, including the value of the Libyan dinar. He notes that the value of a salary is not just its nominal value but also its ability to purchase goods and services amid changes in exchange rates and prices. The Libyan dinar's performance is crucial in determining the effectiveness of any salary increase. The Central Bank of Libya reported that the selling price of the US dollar was approximately 6.4401 dinars on October 7, 2026.
The country's reliance on oil revenues and limited diversification of income sources complicates the determination of salary levels. Libya's economy heavily depends on imports, which affects the purchasing power of salaries. Dr. Ibrahim links the salary issue to monetary policy, highlighting the need for a stable currency to maintain the value of salaries. Any nominal increase in salaries may lose its social impact if not accompanied by measures to preserve purchasing power and curb inflation.
Dr. Ibrahim also points to the weakness in collecting non-oil revenues, including taxes, customs, and investment returns. This is a critical issue affecting the state's ability to finance spending sustainably. Discussions between the Central Bank of Libya, the Ministry of Finance, and the Audit Bureau in September focused on oil and non-oil revenues, expenditure control, and resource management.
The unified salary scale is part of a broader equation related to public finance management, not just an administrative decision to unify employee salaries. The issue affects not only public employees but also Libyan families directly impacted by food, commodity, and service prices, as well as the cost of living. An increase in salary does not necessarily translate to an improvement in living standards if prices rise or the currency's value declines.
The Central Bank of Libya continues to disburse public sector salaries through the "Ratkak Hathni" system, which had around 1.75 million registered employees in September. The bank's data shows a total of approximately 2.2 million employees. From a citizen's perspective, the issue revolves around the difference between the nominal salary and the actual income that can cover basic needs.
Dr. Ibrahim concludes that the absence of a clear economic policy to address inflation and high prices makes it challenging to achieve a fair salary system. The effectiveness of any salary increase depends on the purchasing power it provides. Therefore, the debate on the unified salary scale goes beyond just unifying numbers to a broader question about economic and monetary policy, revenue management, and expenditure.
Key points
- The unified salary scale in Libya faces challenges due to inflation and currency fluctuations.
- The country's reliance on oil revenues and limited income diversification complicates salary level determinations.
- A stable currency and effective economic policy are crucial to maintaining the value of salaries and ensuring a fair salary system.
