Moroccan Authorities Consider Raising Minimum Wage
The Moroccan authorities appear to be taking the decision to revise the minimum wage upwards. Moroccan Minister Delegate in charge of Administrative Reform and Digital Transformation, Ghita Mezzour, announced a significant increase in the minimum wage, but only for public sector employees. As in all countries, this measure aims to restore some sparkle to a worn-out purchasing power and stimulate the local economy with additional consumption.
This measure is expected to affect over 1,127 million employees. They will benefit from an increase of 1,000 dirhams (316 dinars), divided into two phases. The first 500 dirhams (158 dinars) will be paid out in July of this year, followed by an additional 500 dirhams in July 2025.
In parallel with this revaluation, the Moroccan government also plans to reduce income tax starting from January 2025. This tax reform will allow for an additional 400 dirhams (126 dinars) to be added to all salaries, bringing the total effective increase to 1,400 dirhams (443 dinars) for middle-class employees. The ultimate goal is to reach a minimum income of 4,500 dirhams (1,423 dinars) in the public sector.
From a social perspective, this is very good news for our Moroccan friends. It's an additional step towards greater economic equity and reinforced social stability. There are significant socio-economic disparities in the Kingdom, and such an increase represents a breath of fresh air for the population. However, from a public expenditure perspective, this is no small matter. In the long term, it's a significant burden. Morocco continues to navigate a complex economic environment, despite good macroeconomic performances. It needs to control its public expenditures to ensure long-term sustainability.