Moroccan Government Announces General Wage Boost for Public Workers

Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
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Moroccan Government Announces General Wage Boost for Public Workers

Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal

The Moroccan government has announced upping wages for nearly 800,000 state body and public administration employees over the next three years. The boost, estimated at $700 million, will work to reinforce the political and social stability of the kingdom.

The announcement was made after the government, three trade unions and the General Confederation of Enterprises of Morocco (CGEM) signed an agreement to not only increase wages, but also social benefits in the country.

Addressing the deal’s signatories, Moroccan Prime Minister Saad Eddine El Othmani said the agreement affects minimum wages, social protection payments, and trade union freedoms.

Dubbing the deal as vital, Othmani noted that it “will contribute to laying the foundations for social peace, improving social conditions and strengthening the national economy through establishing a sound economic and social environment.”

The agreement will be effective from 2019 to 2021. Depending on the employee’s position, wages will increase by up to MAD 400 or 500 ($42 or $52) per month, starting at MAD 200 ($20) per month on May 1, 2019.

Othmani indicated this would involve total spending of MAD 2.5 billion ($260 million) during 2019, and up to MAD 7 billion ($724 million) in 2021.

The agreement will establish a new minimum wage for national education sector employees. This is expected to benefit more than 24,000 employees, with a government spending of over MAD 200 million (roughly $21,000).

The government will also increase the minimum wage in the private sector (industry, trade, services, and the agricultural sector) by 10% over two years, with a 5% increase taking effect in July 2019 and a further 5% increase in July 2020.

The agreement also stipulates an increase in family benefits for public and private sector workers. Family compensation will increase by MAD 100 ($10.35) per child, for up to three children, from 1 July 2019, tweeted Moroccan television channel 2M.

“The Government is committed to mobilizing the necessary financial resources to cover the costs of this agreement,” Othmani reasserted.



Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
TT

Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold prices extended declines on Tuesday, hitting a more than one-week low, pressured by a jump in US dollar and easing safe-haven demand after reports of a possible Lebanon-Israel ceasefire.

Spot gold was down 0.4% at $2,614.56 per ounce as of 0845 GMT, after hitting its lowest since Nov. 18 earlier in the session. US gold futures edged 0.1% lower to $2,614.80, Reuters reported.

The precious metal fell 3.2% on Monday, its deepest one-day decline in more than five months, on news that Israel looked set to approve a US plan for a ceasefire with the Iran-backed Hezbollah, with further pressure from Trump's nomination of Scott Bessent as the US Treasury secretary.

Meanwhile, the Kremlin said it had noted that Trump's circle was speaking about a potential peace plan for Ukraine.

"This has reduced the geopolitical risk premium, leading to a decline in gold prices," said Soni Kumari, a commodity strategist at ANZ, adding that a stronger US dollar is also weighing on investor appetite for gold. The dollar was up by 0.3%, after US President-elect Donald Trump vowed tariffs against Mexico, Canada and China, reducing gold's appeal for holders of other currencies.

"So now the focus will shift back to, what Fed is going to do in December meeting," Kumari said. Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the US central bank's policy spectrum, said he is open to cutting rates again next month.

Traders will also keep a close eye on US consumer confidence data and the minutes from the Fed's November meeting later in the day.

"I expect gold to trade in a narrow range in the short term, with a slight upward drift," Matt Simpson, a senior analyst at City Index said.

Spot silver slipped by 0.1% to $2,614.80 per ounce, platinum shed 1.1% to $928.40 and palladium was down 0.2% to $971.10.