Morocco: Faced with prices that are soaring, increased minimum wage

The agreement has been signed between the government, the main unions and employers in the industry, trade and services sectors.

Le Monde with AFP

The government of Morocco signed a “social agreement” on Saturday April 30 with the main unions of the country and employers around a flagship measure: an increase in the minimum wage in the private and the public on the eve of the of the work of the 1 er May.

The agreement provides for a revaluation of the minimum wage of 10 % over two years in the industry, trade and services sectors. The minimum wage is currently set at 2,638 dirhams net (250 euros), outside the agricultural sector, details a press release from the Prime Minister’s services.

In the public, the minimum wage will increase to 3,500 dirhams net (some 332 euros), while it is now 3,362 dirhams (nearly 320 euros). The minimum wage had already been increased by 10 % over two years in 2019. The executive says it wants to also converge agricultural wages to those of other private sectors. He also undertakes to increase family allowances for the fourth, fifth and sixth children in the public and private sectors.

several unlocked aids

The agreement was sealed with the General Confederation of Enterprises in Morocco (CGEM) and three union centers, the most representative, namely the Moroccan Labor Union (UMT), the Democratic Labor Confederation (CDT) and The General Union of Workers of Morocco (UGTM). The National Labor Union in Morocco (UNTM) has not signed it.

This agreement comes in a context of flambée in food and fuel prices, boosted by the war in Ukraine which adds the cost of this type of import. The crisis is also exacerbated by a drought that hits Morocco, dependent on its agriculture, the first economic sector of the country (around 14 % of GDP).

Faced with the crisis, several aids have been unlocked in particular for the benefit of the agricultural sector (nearly one billion euros) and road carriers (200 million euros). The kingdom should experience high inflation (+4.7 %) and growth at half mast (+0.7 %) in 2022, according to forecasts from the Moroccan central bank.

Consumer prices (+3.3 % for January and February 2022 over a year) will continue to climb to “levels higher than the last decade”, according to the High Commissioner (HCP).

/Media reports.