Algeria Now
Dual-rate pension increase creates threshold effect for Algerian retirees
· Source: Algeria Now
From 1 May 2026, Algeria's CNR pension scheme applies a two‑tier raise: pensions of 20,000 dinars or less receive a 10% boost, while amounts above that threshold are increased by 5%, according to an order dated 16 April 2026 and published in the Official Gazette on 6 May 2026. The split rate produces a "threshold effect" whereby some pensions that previously exceeded 20,000 dinars end up lower than those that did not reach the level.
The adjustment is retroactive only to May 2026 and does not cover earlier months. It applies to retirees who had at least one year of pension status before 1 May 2025; new retirees will have their reference salaries updated under the same decree.
The percentage increase is calculated on the contributory portion of the pension – the amount derived from the retiree's own contributions – before adding statutory minima and any supplementary allowances. Consequently, the final payment varies according to each pensioner's individual composition.
For a pension without any supplement, the calculation is straightforward: multiply the April 2026 amount by 1.10 if it is 20,000 dinars or less, or by 1.05 if it exceeds that figure. In relative terms, the 10% uplift benefits lower pensions more, but in absolute terms higher pensions gain more dinars; for example, a pension of 80,000 dinars rises by 4,000 dinars, whereas a 15,000‑dinar pension gains 1,500 dinars.