New social contract signed in Morocco, wage increase

The Moroccan government on Thursday announced a "new social agreement" with employers and major unions, under which many workers will benefit from a wage increase.

The agreement signed by the General Confederation of Moroccan Enterprises (CGEM) and the three main unions – the UMT, the UGTM and the UNMT – is the result of months of negotiations

The minimum wage, currently 2,570 dirhams per month ($ 266), will be increased by 10% over two years from July, with the exception of the agricultural sector.

Family allowances paid by the government will also increase.

Meanwhile, public sector workers will receive a monthly salary increase of 300 to 500 dirhams over three years.

Among the main Moroccan unions, only the Democratic Labor Confederation has not signed the social agreement which, according to the government's statement, aims to "improve the spending power and the social climate".

Last July, King Mohammed VI urged the government to take "urgent measures" to address social problems, particularly health and education in this country of Africa. North, affected by demonstrations against employment and corruption.

Mohammed VI highlighted social support and social protection programs that "overlap, suffer from a lack of coherence and do not effectively target eligible groups".

After months of deadlock, the file was handed over to the Ministry of the Interior at the beginning of the year and the last negotiations took place.

The social unrest began in October 2016 after the death of a fisherman and turned into a wave of protests demanding more development in the neglected Rif region and denouncing corruption and unemployment.

Morocco is marked by glaring social and territorial inequalities, in a context of high unemployment among young people. In 2018, it was ranked 123rd out of 189 countries and territories according to the Human Development Index.