The Moroccan Government’s Bold Moves: Salary Increments and Social Welfare Reforms
The Moroccan government recently announced a groundbreaking initiative to increase public sector employee salaries in multiple stages, with the first tranche of 500 dirhams set to be distributed in July 2024. This move, estimated to cost 1.1 billion dirhams annually from 2023 to 2026, will benefit around 1.1 million employees. Notably, the minimum wage in the public sector will see a significant hike to 4,500 dirhams per month, a 50% increase.
But the government’s efforts go beyond salary increments. They are committed to the “social state” concept, which aims to uplift vulnerable and middle-class citizens. This includes expanding health coverage to over 10 million Moroccans, providing monthly support to 3.6 million families, and implementing reforms in retirement benefits and job loss compensation.
Additionally, the government is supporting various economic sectors through subsidies and investments, all while maintaining essential services like water supply. Despite substantial social spending, public investment is set to reach 335 billion dirhams this year, showcasing the government’s dedication to economic growth.
Positive signs are also seen in foreign investment, which surged to 16.1 billion dirhams by May 2024, a 20% increase from the previous year. Reforms in the investment charter and business climate have played a pivotal role in attracting this investment, creating jobs and boosting the financial market.