Increase in the minimum wage, revaluation of family allowances for the 4th, 5th and 6th children, overhaul of the Income Tax grid… the social agreement signed on April 30 between the most representative unions, the employers´ association CGEM , and the government includes a series of measures aiming at improving the purchasing power and at catching up with galloping inflation (4% at the end of March, and the central bank is forecasting 4.7% this year). For some measures, the entry into force is scheduled for next September, others will wait until next year. Unlike previous years, this new social pact provides a precise timetable for the various measures. A change in size that reassures the different parties. In any case, trust between the social partners is back!
Overview of the different measures:
Increase in the minimum wage for civil servants and employees
The minimum wage will increase by 10%, in two stages, in the private sector: 5% from next September and 5% in September 2023. Standing currently at 14.81 Dirhams (MAD) per hour, the hourly level will initially increase to 15.55 MAD and thereafter at 16.30 MAD. In the public service, an increase in the minimum wage of 500 MAD is granted. The minimum wage will increase to 3,500 dirhams next September. The trade unions and the Government have also agreed to a general wage increase in the civil service. The terms and level of the increase will be discussed next September.
The minimum wage and the agricultural minimum wage will be aligned
Claimed for several years, the minimum wage in agriculture will be gradually aligned with the minimum wage in other sectors. For this, the agricultural minimum wage will be raised by 10% in 2022 and 2023, and by 5% between 2024 and 2028.
Overhaul of the Income Tax from 2023
The measure will be included in the next Appropriations Bill. For the moment, no scenario has been presented to the partners since the studies are still in progress.
The right to retirement from 1,320 days of contributions
The minimum threshold to benefit from a Social Security pension will be reduced: it will increase to 1,320 days against 3,240 days currently. Below 1,320 days, the insured people will be able to recover employer and employee contributions.
Law on strike coming soon
In return for the rise in the minimum wage, the government has undertaken to promulgate the law on the exercise of the right to strike on January 1, 2023.
15 days paternity leave
Paid paternity leave of 15 days is also provided for in the agreement between the government and the social partners. This measure targets the public sector. The goal is to reconcile between the professional and private life of employees. It is also about the application of the international convention No. 183 on the protection of maternity, ratified by Morocco on April 13, 2011.
Revaluation of family allowances:
This measure targets the 4th, the 5th, and the 6th children. Instead of 36 MAD, the family allowance will increase to 100 MAD. In the public sector, the measure will cost 25 million MAD for a total of 32,495 beneficiary children. The same revaluation is also planned in the private sector whose family allowance branch has generated a surplus.
Khadija MASMOUDI
