3 Million Employees Officially Registered with CNSS!
2 February 2015
Read by 1972 persons
The number of employees registered with the CNSS (National Social Security Fund) increased by 4.3% in 2014.
With the implementation last July of the first increase in the minimum wage (SMIG), those earning the minimum wage represent 43.4% of all registered employees, compared to 38.9% in 2013. Only 6.4% of registered employees earn a salary equal to or greater than 10,000 DH.
Finally, the number of employees registered with the CNSS is nearing 3 million people! There are still 4,274 employees missing to reach the round figure of 3 million registered employees, but let's not quibble…
This figure, provided by the National Social Security Fund for 2014, represents a 4.3% increase compared to 2013 and a 76.2% increase compared to 2005. This is a good progression, even if, relative to the employed active population, this statistic only represents 27.9%. It is true that this only concerns employees in the private sector, but we also know that employment, nationally, across all sectors, represents nearly 44% of the employed active population. There is therefore a gap of 16 points between these two figures that public sector employees (1.2 million at most) cannot fully cover.
This situation is easily explained. The High Commission for Planning (HCP) conducts its employment surveys based on declarations from individuals in the sample. It can happen, and often does, that a worker declares themselves as an employee during the HCP investigators' visit, even if their employer has not declared them to the CNSS. As a result, the HCP's employment figures cannot be fully reflected in the CNSS figures. A part is lost in this well-known phenomenon of informality. In the construction industry (BTP), for example, there is a lot of employment, recorded as such by the HCP, but not all employees in this activity are declared to the CNSS. From this point of view, it is not surprising to note that the construction industry has the highest rate of underemployment: 17.2% in the third quarter of 2014, while the national level is only 10.6%. And this has been the case for a long time; so much so that underemployment in the construction industry remains above 15%.
All this is to say that there is still room to increase declarations to the CNSS, therefore contributions, and ultimately, improve the viability of the system.
We know that the fund is working on this and is achieving results, but it will probably need an army of investigators to reduce the phenomenon of social evasion to its simplest expression.
93.6% of employees earn less than 10,000 DH per month
Another development emerging from the CNSS statistics: 43.4% of registered employees in 2014 received a salary equal to or less than 2,450 DH per month, which is the amount of the monthly minimum wage after the 5% increase applied in July 2014 (the second increase in the SMIG, 5%, is planned for July 2015). In 2013, the proportion of employees receiving a salary equal to or less than the SMIG was 38.9%. The population of "minimum wage earners" therefore increased by 4.5 points; a quasi-mechanical effect since in 2013 the SMIG was still at 2,334 DH per month (in monthly terms).
Next July, the population of "minimum wage earners" will probably increase slightly again with the implementation of the second increase in the SMIG. This shows the low level of salaries distributed – at least those declared – in the private sector. According to CNSS data, 87.2% of registered employees in 2014 earned less than 6,000 DH per month, almost the same proportion as in 2013. 93.6% still earn less than 10,000 DH per month; again, the same as in 2013 (93.7%). In 2005, this proportion was 90%.
Employees earning between 6,000 DH and 10,000 DH only represent 6.4%, compared to 6.2% in 2013. The same proportion applies to those earning 10,000 DH or more per month.
But what is behind this low level of salaries in the private sector? Is it the result of under-declaration? This, to repeat, does exist, but it does not seem to explain everything. There is probably something to look for in the structure of the economy. In Morocco, it is well known that competitiveness is still based on the labor factor, and this explains the low technological intensity of the products manufactured here. And low technological content is an indication of the weakness of management in companies and, beyond that, of research and development. This is why growth in Morocco is primarily the business of the tertiary sector. Industry has even seen its share of GDP decrease to 13/14%…
Salah Agueniou.
Lavieeco.com
Published February 2, 2015.
Posted online February 2, 2015.
With the implementation last July of the first increase in the minimum wage (SMIG), those earning the minimum wage represent 43.4% of all registered employees, compared to 38.9% in 2013. Only 6.4% of registered employees earn a salary equal to or greater than 10,000 DH.
Finally, the number of employees registered with the CNSS is nearing 3 million people! There are still 4,274 employees missing to reach the round figure of 3 million registered employees, but let's not quibble…
This figure, provided by the National Social Security Fund for 2014, represents a 4.3% increase compared to 2013 and a 76.2% increase compared to 2005. This is a good progression, even if, relative to the employed active population, this statistic only represents 27.9%. It is true that this only concerns employees in the private sector, but we also know that employment, nationally, across all sectors, represents nearly 44% of the employed active population. There is therefore a gap of 16 points between these two figures that public sector employees (1.2 million at most) cannot fully cover.
This situation is easily explained. The High Commission for Planning (HCP) conducts its employment surveys based on declarations from individuals in the sample. It can happen, and often does, that a worker declares themselves as an employee during the HCP investigators' visit, even if their employer has not declared them to the CNSS. As a result, the HCP's employment figures cannot be fully reflected in the CNSS figures. A part is lost in this well-known phenomenon of informality. In the construction industry (BTP), for example, there is a lot of employment, recorded as such by the HCP, but not all employees in this activity are declared to the CNSS. From this point of view, it is not surprising to note that the construction industry has the highest rate of underemployment: 17.2% in the third quarter of 2014, while the national level is only 10.6%. And this has been the case for a long time; so much so that underemployment in the construction industry remains above 15%.
All this is to say that there is still room to increase declarations to the CNSS, therefore contributions, and ultimately, improve the viability of the system.
We know that the fund is working on this and is achieving results, but it will probably need an army of investigators to reduce the phenomenon of social evasion to its simplest expression.
93.6% of employees earn less than 10,000 DH per month
Another development emerging from the CNSS statistics: 43.4% of registered employees in 2014 received a salary equal to or less than 2,450 DH per month, which is the amount of the monthly minimum wage after the 5% increase applied in July 2014 (the second increase in the SMIG, 5%, is planned for July 2015). In 2013, the proportion of employees receiving a salary equal to or less than the SMIG was 38.9%. The population of "minimum wage earners" therefore increased by 4.5 points; a quasi-mechanical effect since in 2013 the SMIG was still at 2,334 DH per month (in monthly terms).
Next July, the population of "minimum wage earners" will probably increase slightly again with the implementation of the second increase in the SMIG. This shows the low level of salaries distributed – at least those declared – in the private sector. According to CNSS data, 87.2% of registered employees in 2014 earned less than 6,000 DH per month, almost the same proportion as in 2013. 93.6% still earn less than 10,000 DH per month; again, the same as in 2013 (93.7%). In 2005, this proportion was 90%.
Employees earning between 6,000 DH and 10,000 DH only represent 6.4%, compared to 6.2% in 2013. The same proportion applies to those earning 10,000 DH or more per month.
But what is behind this low level of salaries in the private sector? Is it the result of under-declaration? This, to repeat, does exist, but it does not seem to explain everything. There is probably something to look for in the structure of the economy. In Morocco, it is well known that competitiveness is still based on the labor factor, and this explains the low technological intensity of the products manufactured here. And low technological content is an indication of the weakness of management in companies and, beyond that, of research and development. This is why growth in Morocco is primarily the business of the tertiary sector. Industry has even seen its share of GDP decrease to 13/14%…
Salah Agueniou.
Lavieeco.com
Published February 2, 2015.
Posted online February 2, 2015.
