The Moroccan government has agreed to increase private and public sector wages and family benefit payments.
The agreement was signed on Thursday and will be effective from 2019 to 2021.
The agreement affects minimum wages, social protection payments, and trade union freedoms, said Head of Government Saad Eddine El Othmani in his address to the signatories on Thursday evening.
The agreement will increase the wages of around 800 thousand state body and public administration employees. Depending on the employee’s position, wages will increase by up to MAD 400 or 500 ($42 or $52) per month, starting at MAD 200 ($20) per month on May 1, 2019.
El Othmani indicated this would involve a total spending of MAD 2.5 billion ($260 million) during 2019, and up to MAD 7 billion ($724 million) in 2021.
The agreement will establish a new minimum wage for national education sector employees. This is expected to benefit more than 24,000 employees, with a government spending of over MAD 200 million (roughly $21,000).
The government will also increase the minimum wage in the private sector (industry, trade, services, and the agricultural sector) by 10% over two years, with a 5% increase taking effect in July 2019 and a further 5% increase in July 2020.
The agreement also stipulates an increase in family benefits for public and private sector workers. Family compensation will increase by MAD 100 ($10.35) per child, for up to three children, from 1 July 2019, tweeted Moroccan television channel 2M.
“The Government is committed to mobilizing the necessary financial resources to cover the costs of this agreement,” the Head of Government told the signatories.
The agreement was signed by the Head of Government El Othmani, the Secretary-General of the Moroccan Work Union (UMT) Miloudi Mouharik, the Secretary-General of the General Union of Moroccan Workers (UGMT) Naam Miyara, the Secretary-General of the National Work Union of Morocco (UNMT) Abdelilah El Halouti, and the President of the CGEM Salaheddine Mezouar.
The Democratic Confederation of Labor (CDT) boycotted the agreement to protest against the government failing to respond to its demands in separate negotiations on revenue, pension tax, and workers’ right to strike.