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Rabat – The sweeping reforms for the generalization of social protection in Morocco will cost MAD 51 billion ($5.7 billion) per year, according to the Minister of Economy, Finance and Administrative Reform, Mohammed Benchaaboun.
Benchaaboun presented the framework bill 09.21 on social protection during a hearing session before the House of Advisors, the upper chamber of the Moroccan parliament, on February 22.
He broke down the sum to its main components, namely MAD 14 billion ($1.6 billion) towards basic compulsory health insurance; MAD 20 billion ($2.3 billion) towards family allowance; MAD 16 billion ($1.8 billion) towards broadening the Moroccan pension scheme; and MAD 1 billion ($113 million) towards compensation for loss of employment.
The financing of the reform will be split fairly evenly among those who will have the capacity to pay for social protection and those who do not. The people within the affiliation system, who have the capacity to participate in financing their own social protection package, will contribute MAD 28 billion ($3.2 billion) to the budget, while MAD 23 billion ($2.6 billion) will be allocated for those who are not able to pay for it.
Read also: World Bank ‘Proud’ to Support Social Protection Reforms in Morocco
The financing of the generalization of social security will be defined by the timetable set by King Mohammed VI, Benchaaboun explained. The generalization of compulsory basic health insurance will be enacted throughout 2021 and 2022, helping reach additional 22 million beneficiaries.
The time period between 2023 and 2024 will see the generalization of family allowances, covering approximately 7 million children of school age. He projected that the pension schemes will benefit 5 million working people by 2025.
King Mohammed VI presented the roadmap for the reform of generalized social security during a speech on October 9, 2020.
“As you know, I have always sought to make sure economic progress goes hand in hand with social development and with improved living conditions for citizens. For this reason, I have called for social welfare coverage for all Moroccans,” the King said.
