Yemen Monitor/Newsroom:
A recent research report issued by the Mukha Center for Strategic Studies has unveiled the risks and implications of the new Houthi mechanism announced for disbursing salaries in areas under their control.
In December 2024, the Houthi group enacted a law titled “The Exceptional Temporary Mechanism to Support the State Employees’ Salary Bill and Resolve the Problem of Small Depositors.” This law, according to Houthi statements, aims to address the issue of interrupted salaries for public employees and ensure equitable distribution of monthly income among employees of public service units.
As per the center’s report, the mechanism’s core concept involves establishing a special account at the Central Bank branch in Sana’a, under Houthi administration, to serve as a repository for funds allocated to employee salaries. This account relies on revenues collected from the government’s general account after covering monthly obligations, in addition to a contribution percentage imposed on various government entities.
The mechanism stipulates full salary disbursements for certain essential units like the parliament and judiciary, while salaries for other units are determined based on their ability to cover expenses. Any entitlements outside this mechanism are deemed non-obligatory for the government.
This move raises numerous concerns about manipulating the rights of public employees, as their entitlement to salaries is replaced with new lists subject to Houthi conditions. Moreover, the mechanism appears to reinforce discrimination among employees based on their job roles, contradicting the principle of justice.
Analyses indicate that the mechanism could pave the way for the Houthis to seize public sector resources under the guise of paying salaries, exacerbating concerns about the future of the national economy. The mechanism also faces criticism for not adequately addressing the needs of teachers, who are among the most deprived groups.
Furthermore, the mechanism imposes new taxes on luxury goods and income taxes on salaries exceeding certain limits, potentially increasing financial burdens on citizens. The group seeks to impose a new reality regarding employee salaries, escalating potential future tensions.
The report concludes that this mechanism contravenes the constitution, the law, and the existing salary disbursement rules based on justice and universality. It appears to be a result of Houthi fears stemming from the potential fall of the Bashar al-Assad regime in Syria, as well as an attempt to absorb anticipated popular discontent following the end of the Gaza war. Additionally, it may face a similar fate to previous failed experiments in this context.
