- Teachers, doctors and oil-facility guards step up pressure for pay rises after a 7-billion-dinar increase for defence personnel, as economists warn of the toll on public finances and inflation.
A decision by the Government of National Unity's Ministry of Finance to raise salaries for Ministry of Defence personnel, at an estimated additional annual cost of 7 billion dinars, has triggered a wave of demands for pay increases across other public-sector groups, alongside renewed economic warnings over the decision's implications for inflation and public finances.
The Teachers' Union announced a comprehensive strike days before the start of the school year, demanding higher salaries and health insurance, as doctors' unions moved in parallel to press for better living conditions and higher pay. Workers guarding oil and gas facilities have also demanded salary increases, warning they could shut down oil and gas transport lines if their demands go unmet.
Economists have warned against the expanding public wage bill and broader government spending, arguing that addressing the pressures facing the middle class cannot rely on salary increases alone. Economic commentator Hashem Belkheir said protecting the middle class requires preserving citizens' purchasing power, improving education, health and public services, and tackling monopolies and the privileges tied to political influence.
Belkheir added that correcting Libya's economic imbalances requires granting municipalities greater powers and resources, distributing development fairly according to population and regional needs, and strengthening oversight to prevent corruption spreading from central to local government.
Abu Bakr al-Tuwar, a member of the National Assembly for Combating Corruption, described the rise in state employee salaries to high levels as "a major economic error," warning that the increases have contributed to a growing public payroll and wage bill without addressing other areas of expenditure.
Al-Tuwar said Libya's public finances remain hostage to oil-price volatility, warning that falling prices or a halt in production could leave the state unable to meet its salary obligations. He called for diversifying revenue sources, noting that salaries and public expenditure now absorb an increasing share of state resources.