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.