Morocco raises the minimum wage as prices rise

On Saturday, on the eve of International Workers’ Day, the Moroccan government signed a “social agreement” with the main trade unions and the Federation of Employers, which provided, in in particular, an increase in the minimum wage in the public and private sectors.

The agreement provides for a 10% increase in the minimum wage in two years in the sectors of industry, commerce and services. The minimum wage before the announced increase is 2,638 dirhams, after taxes (250 euros), but does not include the agricultural sector, according to a note from the government presidency.

Under the agreement, the minimum wage in the public sector will be 3,500 dirhams after taxes (about 330 euros), compared to 3,362 dirhams today (about 320 euros).

The minimum wage had previously been raised by 10% for two years in 2019. The government announced that it would also bring agricultural wages closer to those of other private sectors.

The government and the Federation of Employers have also pledged to increase family allowances for the fourth, fifth and sixth children in the salaries of public and private sector employees.

The agreement was concluded with the General Confederation of Moroccan Enterprises and the three most representative trade unions, the Moroccan Confederation of Labor, the General Federation of Moroccan Workers and the Democratic Confederation of Labor. The National Confederation of Labor in Morocco did not sign the agreement.

The deal comes in light of rising food and fuel prices, exacerbated by the war in Ukraine.

The crisis has also been exacerbated by the drought that has hit Morocco hard, which is dependent on agriculture, which provides about 14% of the country’s GDP.
Faced with the crisis, the state allocated several aid packages that included, in in particular, the agricultural sector (worth around one billion euros) and road hauliers (200 million euros).

According to the forecasts of the Central Bank of Morocco, in 2022 the Kingdom is expected to experience high inflation (+ 4.7%) and weak growth (+ 0.7%).

Consumer prices (+ 3.3%, for the months of January and February 2022 in one year) will continue to rise to “levels above the media of the last decade “, according to the Moroccan High Commissioner for Planning.

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