Minimum Wage in Morocco

The Minimum Wage in Morocco was raised by 10% for two years in 2019. The government announced that the rate for agricultural workers would be brought closer to that of the private sector. It also pledged to increase family allowances for fourth, fifth, and sixth children. The increase was achieved after an agreement between the government and the General Confederation of Moroccan Enterprises and the Moroccan Confederation of Labor. Although the Democratic Confederation of Labor and the National Confederation of Moroccan Workers had not signed the agreement, the war in Ukraine had an impact on the minimum wage in Morocco.

Anker Living Wage Reference Value study for rural Morocco

The Global Living Wage Coalition recently released the Anker Reference Value methodology for measuring living wages and incomes across the world. These new methodologies, which build on 40 previously published benchmark studies, help stakeholders understand and reduce wage and income gaps at the country level. In rural Morocco, these benchmark studies are particularly important because they allow policymakers to measure living wages and incomes at a much higher level than minimum wages and poverty lines.

The Anker Living Wage Reference Value study for the rural Moroccan region uses the Anker methodology to estimate the living wage for the rural areas of the country. Other recent reports focus on food security and inflation in the country, while the Fairfood project examined collaboration with local trade unions to improve working conditions in the tomato industry. Lastly, the IFAD study examined the impact of farmer’s organizations on smallholder livelihoods in 12 countries.

The methodology relies on a number of factors. First, the data used for calculating Living Wages are often not updated regularly enough. The WageIndicator, which collects price data, tries to ensure consistency over time. By the end of the project, it should be able to calculate a Living Wage in more than 134 countries and regions. If the WageIndicator deems the data to be inaccurate, it will fix it and publish a new Living Wage.

The methodology used in the Anker Living Wage Reference Value study for Moroccan rural areas is similar to that used by the Global Living Wage Coalition. However, the WageIndicator calculates a Living Wage by adding 5% to the Anker Manual for Calculating Living Wages. Additionally, it provides a Wages in Context map that shows the Living Wage estimates of different organizations.

The WageIndicator provides Living Wages based on a variety of family characteristics. These factors reflect the differences in life-work situations around the world. The first family in the study is employed full-time, while the second is employed part-time. The second adult is assumed to work half-time, based on the national employment rate. Using these factors, the Living Wage can be calculated for four different types of work schedules.

The Cost of Living application was introduced in 2014 and collects prices of daily necessities. The cost of living application is web-based and reaches large populations. As such, data can be updated regularly. The WageIndicator collects price data using laptops, tablets, smartphones, and the internet. To do this, web visitors are asked to complete a price survey on various products. For each survey, respondents identify their city and region. The data is then used to map regional Living Wages.

Increase in the minimum wage for public and private sector workers

A new Moroccan government announcement has increased the minimum wage for public and private sector workers by around 10%. This is an increase that excludes the agricultural sector. The minimum wage in Morocco will now be around 3,500 dirhams, after taxes. Earlier, the government was only able to raise the minimum wage by 5% in the private sector, which was only three hundred and fifty dirhams. The government has also promised to increase family allowances and retirement benefits.

The Moroccan government recently announced that it will increase the legal minimum wage by 10% over the next two years. It is also making an effort to bring the wages of farmers closer to those of private-sector employees. In addition, it is pledged to raise family allowances for fourth, fifth, and sixth children. The agreement was reached with the General Confederation of Moroccan Enterprises and the General Federation of Moroccan Workers. The Democratic Confederation of Labor and the National Confederation of Moroccan Labor did not sign the agreement, and the war in Ukraine had a negative impact on the negotiations. The Moroccan government also pledged to improve the promotion rate in the public sector, as well as increase the family allowance for the fourth, fifth, and sixth child in the public sector.

The Moroccan productive system is underdeveloped, which makes it difficult for it to absorb all the skilled labor available. The fourth section of the paper analyzes the contributions of the public sector to employment and the qualifications that workers must have in order to get jobs in the public sector. Morocco has an extremely high public sector wage bill, which puts pressure on the government budget, threatens macroeconomic stability, and restrains growth prospects.

The increase in the minimum wage for public and private sector workers is a positive development, but it comes with risks. As the government increases the minimum wage, it could raise the cost of labor, undermining the competitiveness of the industrial sector. The unemployment rate in the country has risen to 10.2% and traditional industries are shedding jobs. In addition, the minimum wage has not kept pace with job losses in the traditional sectors, leading to a higher-than-expected unemployment rate.

This government’s offer is not likely to solve the country’s job problems. Despite protests by the working class and trade unions, the move is a symbolic gesture towards unions and the lower classes. However, the increase in the minimum wage should at least address the concern of workers who have reduced purchasing power due to reduced fuel subsidies. The government’s announcement does not address the main concerns of Moroccan workers.

Moroccan employees typically work forty-four hours a week. Overtime is compensated per the collective bargaining agreement and employment contract. Moroccan compensation laws are different depending on the agreements. Moroccan employees should receive paid time off for 13 national holidays and 24 days of paid annual leave. Those working more than fifty-four hours over four months will be entitled to sick leave, which equals to two-thirds of the average daily wage. In addition to these minimum wages, Moroccan women are entitled to fourteen weeks of paid maternity leave and one year of unpaid leave.

Increase in family allowances

The Moroccan government has announced an increase in the minimum wage of its workers. The new rate is 10% higher than the previous minimum wage, and this increase is applicable in the public, private, and artisanal sectors. The government has also committed to raising family allowances for the fourth, fifth, and sixth children, in accordance with the agreement between labor unions and government officials. This increase comes in the midst of inflationary pressures, including increased prices for imported goods.

The increase in family allowances will increase from 36 to 100 dirhams per month for families with more than three children. The increase will supplement the CNSS payment, which is fixed at 300 dirhams per month for the first three children. The government also plans to make certain categories of civil servants regular in the education sector, including teachers and guidance and educational planning advisers. The government estimates that the increase in family allowances will raise the minimum wage in the civil service by 16%.

The Moroccan government announced that the minimum wage for the private and public sectors will increase by nearly 16 percent and 10 percent, respectively, over the next two years. The increase in minimum wage follows an agreement between the government and the main labor union and employers’ federation. In addition to the increase in minimum salaries, the agreement includes an increase in family allowances and retirement benefits. A Moroccan minimum wage of 3500 dirhams will increase by 10.5% in two years.

The government’s announcement has made it easier for Moroccan workers to make ends meet. The minimum wage in the public sector will rise to 3,500 dirhams net or about 320 euros per month. It is expected to be implemented on 1 September 2022. It is important to remember that the increase is only for two years and that the actual amount will rise even more. This increase will benefit 50,000 people.

In addition to the increased cost of food, the drought in Ukraine has also hit the country hard. Local agriculture makes up 14% of the country’s GDP, so the government has allocated several packages to help its farmers and road haulers. However, the central bank has forecast weak growth and high inflation in the next two years. The government has promised to release billions of euros in aid to help its citizens. While the increase in family allowances is welcome news for families, many are unsure that it will have an immediate impact on the country’s economy.

Other important factors to consider in determining whether the increase in the minimum wage in Morocco raises wages in the informal sector effectively are whether the household head is the primary worker or the secondary family worker. A high minimum wage in Morocco has also increased wages in the formal sector, which is a major source of poverty in the country. However, the impact on the informal sector has been smaller. In some countries, the increase in minimum wages has even depressed wages.

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