The government raises the minimum wage and lowers retirement conditions as part of a comprehensive social reform package.
Follow-up
The government has announced a series of new social measures aimed at increasing the net monthly minimum wage in the public sector from 3,000 dirhams to 4,500 dirhams, a 50% increase over five years, as part of the outcomes from the April round of social dialogue.
The Prime Minister’s Office clarified in an official statement that this increase is part of a broader reform package to improve incomes and enhance social protection, which is expected to have a total cost of 45.7 billion dirhams by 2026.
The government revealed that the average net monthly salary in the public sector will rise to 10,100 dirhams by 2026, compared to 8,237 dirhams in 2021, thanks to improvements in the financial situation of employees in the education, health, and higher education sectors.
In the private sector, the legal minimum wage (SMIG) has been increased by 15% to 3,046.77 dirhams net per month, while the minimum wage in the agricultural sector (SMAG) has risen by 20% to 2,255.27 dirhams. Additional increases of 5% for both SMIG and SMAG will take effect starting in January and April 2026, respectively.
Regarding social protection, the government approved a reduction in the condition for qualifying for old-age pensions from 3,240 to 1,320 days of insurance, with retroactive effects for those who reached retirement age starting January 1, 2023. Individuals who do not meet this condition will also be allowed to recover their employer’s share of contributions along with the employee’s share.
The measures also include a review of income tax starting in January 2025, leading to an improvement in the income of workers in both the public and private sectors by more than 400 dirhams per month, at a total cost approaching 6 billion dirhams.
Regarding sectoral demands, the statement confirmed that the Ministry of Interior will continue dialogue with unions about the statutory status of local government employees, more than 84,000 in number, with a new meeting scheduled for May 13, 2025, to continue consultations.
