Morocco: Unemployment benefits from 2014
23 August 2013
Read by 1434 persons
After several months of discussions, it's settled. The government has agreed to double the budget allocated to unemployment benefits, and the CGEM (General Confederation of Moroccan Enterprises) has validated its implementation. A first in Morocco, which should come into effect from next year. However, receiving this benefit is not without conditions. Explanations.
Good news for Moroccan employees! The General Confederation of Moroccan Enterprises (CGEM) has just approved the implementation of unemployment benefits [IPE]. "This agreement follows the government's commitment to double the budget requested by the CGEM under the new mandate, planned by the state to support the launch of the IPE," indicates the Confederation in a press release issued on Tuesday, July 23.
A project several years in the making
The idea of an IPE in Morocco was first raised in the early 2000s. After social dialogue, the state had decided to allocate only 250 million dirhams to it. A budget deemed insufficient by the CGEM, which refused to accept this direction under such conditions. And for good reason: the IPE mechanism risked being in deficit after the second year of its implementation. This would have resulted in the cessation of the IPE or an increase in employee and employer contributions. A perspective that was difficult to imagine, given on the one hand the stagnation of wages and on the other hand the increase in company costs that this could have caused.
The government finally agreed to increase the budget to 500 million dirhams over the first three years. With an eventual evaluation and review of the system, the CGEM believes that this sum "ensures more sustainable funding for the IPE." The first part of this budget will, in principle, be budgeted in the 2014 Finance Act.
According to the CGEM, this compensation will allow the development of the employability of Moroccan employees, as well as the fluidity of the labor market. In the long term, the Confederation sees it as a contribution to reducing unemployment. Which, at 9.4%, recorded a slight decrease of 0.5 points in the first quarter of 2013, compared to the same period last year, according to HCP data.
780 days of social security contributions are required
According to the mechanism established for the IPE, the unemployed employee will receive the equivalent of 70% of their average monthly salary over the last 36 months, capped at the minimum wage (SMIG). The benefit can be paid for up to six months from the date the activity stops.
Meeting on Tuesday at the CNSS (National Social Security Fund) board meeting, unions and business leaders agreed on their contribution: 0.19% for employees and 0.38% for employers. In parallel, the employee will be supported by the ANAPEC (National Agency for the Promotion of Employment and Skills) in their job search.
However, the IPE will not be applicable to any employee. Already, any applicant for this benefit must have lost their job "involuntarily," specifies the CGEM. In addition, they must first justify 780 days of social security contributions, including 216 during the last year of work before losing their job. The only downside is that declared salaries are often relatively low. L'Economiste gives the example of 2012, where 50% of the population earned less than 2500 dirhams. Currently, 40% of employees would have a salary below the SMIG. As a result, the benefit may not be very significant for many people.
Yabiladi.com
Published July 24, 2013.
Posted August 23, 2013.
Good news for Moroccan employees! The General Confederation of Moroccan Enterprises (CGEM) has just approved the implementation of unemployment benefits [IPE]. "This agreement follows the government's commitment to double the budget requested by the CGEM under the new mandate, planned by the state to support the launch of the IPE," indicates the Confederation in a press release issued on Tuesday, July 23.
A project several years in the making
The idea of an IPE in Morocco was first raised in the early 2000s. After social dialogue, the state had decided to allocate only 250 million dirhams to it. A budget deemed insufficient by the CGEM, which refused to accept this direction under such conditions. And for good reason: the IPE mechanism risked being in deficit after the second year of its implementation. This would have resulted in the cessation of the IPE or an increase in employee and employer contributions. A perspective that was difficult to imagine, given on the one hand the stagnation of wages and on the other hand the increase in company costs that this could have caused.
The government finally agreed to increase the budget to 500 million dirhams over the first three years. With an eventual evaluation and review of the system, the CGEM believes that this sum "ensures more sustainable funding for the IPE." The first part of this budget will, in principle, be budgeted in the 2014 Finance Act.
According to the CGEM, this compensation will allow the development of the employability of Moroccan employees, as well as the fluidity of the labor market. In the long term, the Confederation sees it as a contribution to reducing unemployment. Which, at 9.4%, recorded a slight decrease of 0.5 points in the first quarter of 2013, compared to the same period last year, according to HCP data.
780 days of social security contributions are required
According to the mechanism established for the IPE, the unemployed employee will receive the equivalent of 70% of their average monthly salary over the last 36 months, capped at the minimum wage (SMIG). The benefit can be paid for up to six months from the date the activity stops.
Meeting on Tuesday at the CNSS (National Social Security Fund) board meeting, unions and business leaders agreed on their contribution: 0.19% for employees and 0.38% for employers. In parallel, the employee will be supported by the ANAPEC (National Agency for the Promotion of Employment and Skills) in their job search.
However, the IPE will not be applicable to any employee. Already, any applicant for this benefit must have lost their job "involuntarily," specifies the CGEM. In addition, they must first justify 780 days of social security contributions, including 216 during the last year of work before losing their job. The only downside is that declared salaries are often relatively low. L'Economiste gives the example of 2012, where 50% of the population earned less than 2500 dirhams. Currently, 40% of employees would have a salary below the SMIG. As a result, the benefit may not be very significant for many people.
Yabiladi.com
Published July 24, 2013.
Posted August 23, 2013.
