Rabat – Starting this month, private sector employees who receive benefits from the National Social Security Fund (CNSS) will see their family benefits increased. For up to three children, parents will receive MAD 300 instead of 200 annually.
The CNSS board approved the increases on July 17. On Thursday, August 29, the Government Council endorsed the act, which amends Law 2.08.358.
On April 25, Morocco’s major trade unions, the government, and the Federation of Moroccan Enterprises (CGEM) came to an agreement through social dialogue on reforms, including the increases in CNSS benefits.
The increased benefits go into effect in September but will be retroactive to July.
CNSS will also cover more medical expenses than before. It will reimburse consumers for 90% of the cost of generic drugs, 100% of medical devices, and 70-80% of medical care. The fund will also increase the maximum payouts for certain medical products, such as eyeglasses and dentures.
Increased benefits, the government hopes, will improve the purchasing power of private sector employees and give them more of a cushion against financial trouble.
The government expects to spend MAD 7.8 billion on the benefits this year, an increase from MAD 5.5 billion in 2018.
CNSS expenses have been steadily increasing. The fund began running a “technical” deficit in 2018 and will face a “total deficit” in 2027, according to Morocco’s Economic, Social, and Environmental Council (CECE). Barring reform, CNSS will exhaust its reserves by 2044. However, the Oxford Business Group believes CNSS’s bankruptcy is imminent and could happen as soon as 2021.