During the initial social dialogue sessions between the government and the central unions, a delegation from the Moroccan Labor Union proposed increasing the minimum wage to 5000 dirhams.
In the wake of this proposal, opinions were divided between those who consider the economic situation ‘ready for such an increase’ and those who warn of “impacting the competitiveness of the private sector.”
According to economic operators, it appears that the demand for “improving the status of human capital to enable Morocco to build a future-oriented society” and protecting it from “capitalist exploitation” still holds “a fundamental position in building a fair and integrated Moroccan economy that distributes national wealth equally among all Moroccans.”
This is especially notable given that “many companies have amassed significant wealth at the expense of cheap Moroccan labor and tax evasion.”
Idriss Al-Fina, an economist and the head of the Future Center for Strategic Analysis, stated that “this proposal is timely and reflects the need highlighted by the current economic circumstances in Morocco, especially with the rising prices.”
“There is practically nothing hindering the increase of the minimum wage to reach 5000 dirhams, as prices continue to rise and purchasing power is increasingly affected,” the economist said to Hespress AR.
Pointing out “the difficulties created by this economic situation for Moroccan workers, where the vast majority spend their lives working without being able to afford a car or a home, which are considered the ultimate aspirations of the Moroccan middle class.”
Al-Fina considered that “raising the minimum wage will have more positive effects than negative ones, as foreign investments are no longer solely attracted by cheap labor, but also because Morocco offers skilled engineers, a favorable business climate, investment incentives, and so on.”
In this regard, Mohammed Jadri, an economist, considered that “the demand is both feasible and timely given the overall socio-economic landscape of Morocco.”
He noted that “implementation will be challenging, as the government lacks sufficient resources to do so, and is facing a series of reforms, such as pension reform and strikes.” He stated, “Currently, it may be possible to increase the minimum wage by up to 600 dirhams at most in the public sector.”
Jaddari further stated to Hespress that “raising the minimum wage to 5000 dirhams would be challenging in the private sector, and it’s unlikely for the government to exert pressure in that direction.”
He highlighted that “while the demand itself is significant, its implementation faces objective challenges.”
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