Moroccan government to increase minimum wage by 10%

Moroccan government to increase minimum wage by 10%
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Tuesday 30 August 2022 - 20:00

The Council of Government will adopt, next Thursday a draft decree to boost the Guaranteed Interprofessional Minimum Wage (SMIG) by increasing it to 10%.

The government signed a “social agreement” on April 30, with the Kingdom’s main trade unions and the General Confederation of Moroccan Enterprises, which should apply an increase in the minimum wage in the private and public sectors.

The signed agreement provides for a 10% increase in the minimum wage for industry, trade, and services sectors that will be divided over two years: 5% in September 2022, then 5% in September 2023.

The agreement also provides for the gradual unification of the legal minimum wage between the industry, trade, liberal professions, and agricultural sectors.

The minimum wage in the public sector should reach 3,500 dirhams net, a standard for the administrative and technical assistants, and the re-evaluation of the promotion in grade from 33% to 36%, according to AFP.

The agreement was signed with the General Confederation of Moroccan Companies (CGEM) and three trade union federations, the most representative of which are the Moroccan Trade Unions (UMT), the Confederation of Democratic Trade Unions (CDT), and the General Trade Union of Moroccan Workers (UGTM), but the National Trade Union of Morocco (UNTM) did not sign, according to the same source.

The deal came as the war in Ukraine increased food and fuel prices as well as the cost of such imports. The crisis has also been exacerbated by drought, which has hit Morocco hard which relies on agriculture, the Kingdom’s main industry, which accounts for about 14 percent of GDP.

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