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Tunisia's Finance Law for 2026 (Law No. 17 of 2025), effective January 1, 2026, introduces several employment and payroll changes. Employers may now exclude the value of in-kind commuter transport from employees' taxable income (cash allowances remain taxable). The State will subsidize employer CNSS contributions for newly hired private-sector graduates on a declining scale over five years (100% in year 1, decreasing to 20% in year 5). The Solidarity Social Contribution is extended through 2026 at the existing 0.5% rate on taxable income. A framework for mandatory wage increases across 2026–2028 has been established, with exact amounts to be set by forthcoming government decrees that may require retroactive pay adjustments.
Tunisia's Finance Law for 2026 (Law No. 17 of 2025) takes effect January 1, 2026, introducing four key employment and payroll changes: a personal income tax exemption for in-kind commuter transport, a five-year state subsidy for employer social security contributions on newly hired graduates, extension of the Solidarity Social Contribution through December 31, 2026, and a framework for mandatory wage increases across 2026–2028.
Who is affected
All employers operating in Tunisia are affected by the transport tax exemption and the Solidarity Social Contribution extension. Private-sector employers who hire employees holding higher-education degrees are eligible for the CNSS subsidy. Public and private sector employers will be subject to the wage increase framework once implementing decrees are published.
What's changing
Transport tax exemption (Article 22)
Effective January 1, 2026, the value of in-kind transport services provided by employers for employees commuting between residence and workplace is exempt from personal income tax and must be excluded from taxable employment income. Cash transport allowances remain taxable.
CNSS subsidy for new graduate hires (Article 13)
The State will cover employer CNSS contributions for newly hired private-sector employees with higher-education degrees on a declining scale over five years:
| Year | State-funded employer CNSS subsidy |
|---|---|
| 1 | 100% |
| 2 | 80% |
| 3 | 60% |
| 4 | 40% |
| 5 | 20% |
Employers must continue to calculate and declare CNSS contributions at the full statutory rate; the state-funded portion reduces the employer's effective cost via the CNSS electronic filing system.
Solidarity Social Contribution extension (Article 87)
The Solidarity Social Contribution (CSS) is extended through December 31, 2026, at the existing rate of 0.5% of annual taxable income, withheld from employee pay.
Wage increase framework (Article 15)
A framework for mandatory wage increases spanning 2026–2028 has been established. Exact amounts and effective dates will be set by forthcoming government decrees and may require retroactive pay adjustments.
What NEO partners and clients should do
- By January 1, 2026: Exclude in-kind commuter transport from taxable employment income; continue to tax cash transport allowances.
- January 2026 onward: Register newly hired graduates with the CNSS electronic filing system to access the employer subsidy for eligible hires.
- Ongoing: Continue withholding the CSS at 0.5% through December 31, 2026.
- Monitor for decrees: Track publication of implementing decrees on wage increases and prepare to update salary configurations, including potential retroactive adjustments.
