Unemployment benefits to start in January.
30 September 2013
Read by 1555 persons
Unemployment benefits (IPE) are expected to be available starting January 2014. It should be included in the 2014 Finance Law, as agreed between the government and social partners during the last CNSS board meeting. Jamal Belahrach, president of the Employment & Social Relations committee of the CGEM, confirms that employers are working on the implementation modalities. Meetings are being held between the employers' confederation, CNSS, the Vocational Training Office and the ANAPEC.
Nearly 20,000 employees could potentially be eligible for this benefit, which will be financed by employees and businesses. The financing of unemployment benefits will be covered at 0.38% by the employer and 0.19% by the employee. All within the limit of a (social contribution) ceiling of 6,000 dirhams. In parallel, the state will contribute 500 million dirhams, an amount that will cover the first 3 years of operation. In the first year, the state's contribution to the start-up fund will be 250 million dirhams, compared to 125 million dirhams in the second year and the same amount during the third year. An evaluation of the mechanism and its viability will be carried out every three years.
The agreed scenario provides for the payment of benefits for 6 months. The amount will be equivalent to 70% of the average salary received over 36 months, without exceeding 100% of the minimum wage (SMIG). However, it should be noted that salaries declared to the CNSS remain low: In 2012, 50% of the declared population received a monthly salary of less than 2,500 dirhams and 40% of employees earn less than the SMIG. To be eligible for this benefit, the employee must have 780 days of contributions, including 216 during the last year before job loss. The beneficiary will retain health coverage and family allowances. In addition, the number of days equivalent to the IPE service period will be counted towards the pension.
This benefit will be accompanied by assistance from ANAPEC to help recipients find a job. A qualifying training program, funded by the state, of up to 6 months from the date the beneficiary stops working, will also be deployed. This benefit could also facilitate the implementation of "responsible flexibility". The confederation has already proposed the introduction of a part-time contract and the possibility of using a negotiated termination. Except for unemployment benefits, the other issues remain unclear. Even if relations between employers and unions have matured, since social pacts have been signed and others are underway, issues such as amending the labor code, the right to strike, or measures for youth employment are still pending. The same applies to the regulation of temporary work. The government's support on these issues has not taken place. Should this be attributed to the lethargy experienced by the Ministry of Employment for several months? The political context, with a Benkirane 2 government still pending, is slowing down several projects. In the meantime, the CGEM has taken the initiative several months ago and submitted a draft law on strikes to the unions. But in the immediate future, the confederation intends to launch a caravan to promote collective agreements in collaboration with the ILO. The first operation is scheduled for October in Marrakech.
Youth Employment Equation
Youth unemployment requires mobilization from social partners, Jamal Belahrach is keen to specify. Supporting his point with figures, he explains that seven out of ten young people aged 15 to 29 are unemployed. A high level, while the activity rate of women remains low, as it does not exceed 26%. So far, the employers have made several proposals to revive youth employment, but the government's response is still pending. The employers would thus be in favor of extending the professional integration contract (CIP) to all sectors and all levels while removing the condition of a permanent contract (CDI). They are also in favor of setting up a new "CAP competencies" system, somewhat based on the "OCP Skills" model. Belahrach also reiterates the need for a social summit: "It would allow for the implementation of a clear and precise roadmap."
Khadija MASMOUDI for Leconomiste.com
Jeunesdumaroc.com
Published September 30, 2013.
Posted online September 30, 2013.
Nearly 20,000 employees could potentially be eligible for this benefit, which will be financed by employees and businesses. The financing of unemployment benefits will be covered at 0.38% by the employer and 0.19% by the employee. All within the limit of a (social contribution) ceiling of 6,000 dirhams. In parallel, the state will contribute 500 million dirhams, an amount that will cover the first 3 years of operation. In the first year, the state's contribution to the start-up fund will be 250 million dirhams, compared to 125 million dirhams in the second year and the same amount during the third year. An evaluation of the mechanism and its viability will be carried out every three years.
The agreed scenario provides for the payment of benefits for 6 months. The amount will be equivalent to 70% of the average salary received over 36 months, without exceeding 100% of the minimum wage (SMIG). However, it should be noted that salaries declared to the CNSS remain low: In 2012, 50% of the declared population received a monthly salary of less than 2,500 dirhams and 40% of employees earn less than the SMIG. To be eligible for this benefit, the employee must have 780 days of contributions, including 216 during the last year before job loss. The beneficiary will retain health coverage and family allowances. In addition, the number of days equivalent to the IPE service period will be counted towards the pension.
This benefit will be accompanied by assistance from ANAPEC to help recipients find a job. A qualifying training program, funded by the state, of up to 6 months from the date the beneficiary stops working, will also be deployed. This benefit could also facilitate the implementation of "responsible flexibility". The confederation has already proposed the introduction of a part-time contract and the possibility of using a negotiated termination. Except for unemployment benefits, the other issues remain unclear. Even if relations between employers and unions have matured, since social pacts have been signed and others are underway, issues such as amending the labor code, the right to strike, or measures for youth employment are still pending. The same applies to the regulation of temporary work. The government's support on these issues has not taken place. Should this be attributed to the lethargy experienced by the Ministry of Employment for several months? The political context, with a Benkirane 2 government still pending, is slowing down several projects. In the meantime, the CGEM has taken the initiative several months ago and submitted a draft law on strikes to the unions. But in the immediate future, the confederation intends to launch a caravan to promote collective agreements in collaboration with the ILO. The first operation is scheduled for October in Marrakech.
Youth Employment Equation
Youth unemployment requires mobilization from social partners, Jamal Belahrach is keen to specify. Supporting his point with figures, he explains that seven out of ten young people aged 15 to 29 are unemployed. A high level, while the activity rate of women remains low, as it does not exceed 26%. So far, the employers have made several proposals to revive youth employment, but the government's response is still pending. The employers would thus be in favor of extending the professional integration contract (CIP) to all sectors and all levels while removing the condition of a permanent contract (CDI). They are also in favor of setting up a new "CAP competencies" system, somewhat based on the "OCP Skills" model. Belahrach also reiterates the need for a social summit: "It would allow for the implementation of a clear and precise roadmap."
Khadija MASMOUDI for Leconomiste.com
Jeunesdumaroc.com
Published September 30, 2013.
Posted online September 30, 2013.
