Morocco Raises Minimum Private Sector Wage above $300

Morocco approved a decree to raise the minimum private sector wage in the industrial, trade and service sectors by 5% to 3,111 dirhams ($304), starting this month.

Mustafa Paytas, the official spokesman for the government, said in a press conference Thursday that this increase “aims to improve purchasing power in implementation of the terms of an agreement signed in 2022 between the government, employers, and trade unions stipulating raising the minimum wage in the private sector by 10% in two payments.

The first increase took place in September 2022 at a rate of 5%, when the minimum amount reached 2,970 dirhams at that time, while the second increase was scheduled for the same rate this month.

The government's decision also included increasing the minimum wage for the agricultural sector, which currently stands at 2,193 dirhams ($214), and will rise to 2,303 dirhams ($225).

According to the official figures provided by the Minister of Economy about 300,000 workers in the agricultural sector do not reach the minimum wage, and it is expected that it will be raised annually to reach the level of other sectors.

The minimum wage increase comes at a time when inflation recorded a 5% increase last August on an annual basis, ending a slowdown that lasted for five consecutive months, according to figures from the High Commission for Planning.

1.4 million private sector employees in Morocco received less than the minimum wage as of last June, representing 39% of the total number of employees authorized by companies, estimated at about 3.8 million.

The new increase in the minimum wage in the private sector is the 7th of its kind since 2011. Successive governments have been signing successive agreements with the General Confederation of Moroccan Enterprises and trade unions in order to improve the purchasing power of citizens.

Inflation in Morocco peaked last February at 10.1% before beginning its gradual decline to 4.9% last July. While average inflation recorded 6.6% during 2022, compared to 1.5% in the past two decades.