Tunisia: Delay in Launching Unemployment Insurance Fund Despite Wage Deductions

Tunisia: Delay in Launching Unemployment Insurance Fund Despite Wage Deductions

Tunis – 26 August 2025
The Unemployment Insurance Fund has sparked debate in Tunisia, after the government began deducting contributions from workers’ and employers’ wages earlier this year to finance the fund, without issuing the implementing orders that define how the fund will be managed and the eligibility criteria for beneficiaries.

The fund, established under the 2025 Finance Law, is intended as a social protection mechanism for workers laid off for economic reasons, providing financial compensation until they are reintegrated into the labor market. It is the first of its kind in Tunisia, and has been a long-standing demand since the 2013 social contract signed between the government, the Tunisian General Labour Union, and the Tunisian Union of Industry, Trade and Handicrafts.

Funding and Objectives

According to the law, the fund is financed by a 0.5% wage contribution from workers and a matching contribution from employers, in addition to taxes on tobacco, fuel, and electronic games, and a state budget allocation. The fund aims to establish a social insurance system that protects workers laid off for reasons beyond their control, particularly amid the economic crisis that has led to the closure of thousands of enterprises.

Legal and Transparency Issues

Despite these steps, the Tunisian Forum for Economic and Social Rights considers the ongoing deductions legally questionable, due to the absence of governmental orders regulating fund management and benefit distribution. The forum emphasized that “issuing the implementing orders is essential for the legality of the deductions,” calling for their immediate release and the expedited adoption of the special benefits law.

The forum also stressed the importance of governance and transparency, recommending regular publication of the fund’s revenues and expenditures to avoid any mismanagement of workers’ contributions.

A Pressing Social Need

The need for such a fund became apparent during the COVID-19 pandemic, which caused thousands of Tunisians to lose their jobs due to business closures and bankruptcies. Temporary government measures were used to compensate laid-off workers, but the lack of a permanent system highlighted the fragility of social protection mechanisms.

Today, with ongoing economic challenges and rising unemployment, activating the Unemployment Insurance Fund is a critical social necessity to protect thousands of at-risk workers and support family stability. However, slow administrative procedures and government delays in issuing implementing orders deepen doubts about the commitment to this important reform.