On January 1, 2025, minimum wage crosses 3,000 MAD net mark
As provided for in the social dialogue agreement signed on April 30, 2024 between the government and the social partners, the first 5% increase in the minimum wage in the industrial, commercial, and liberal professions sectors will come into effect on January 1, 2025.
The gross monthly minimum wage will therefore rise to 3,266.96 MAD (USD 326), compared with the 3,111.39 MAD (USD 311) applied until December 31, 2024. This represents a net monthly minimum wage of 3,046.77 MAD instead of 2,901.68 MAD. This is the first time that the net minimum wage has broken the 3,000 MAD barrier. But this is a long way from the demands of the Union Marocaine du Travail (UMT) for a minimum wage of 5,000 MAD.
The revaluation of the minimum wage in the first phase will cost the employers concerned a total of 3,955.96 MAD, compared with 3,767.58 MAD up to the end of 2024. Social security contributions will rise to 909.19 MAD (USD 90) per month for each employee, compared with 865.90 MAD (USD 86).
Statistics provided by the Government to MPs on the eve of the 2025 Finance Bill review show that 1,084,023 employees registered with the National Social Security Fund (CNSS) receive a monthly salary of between MAD 3,111 (USD 311) and MAD 4,000 (USD 400) per month, representing 33% of employees registered with the CNSS.
The latest activity report published by the Social Security Fund shows that 1,263,115 people, namely 42% of those registered, earn a salary of MAD 3,111.39 or less than the minimum wage. Another 489,449 employees earn between the minimum wage (around 2,769.87 MAD) and 3,000 MAD. This represents 16% of the workforce registered with CNSS.
A second 5% increase in the SMIG is also scheduled for January 1, 2026. As a result, the net minimum wage will rise from MAD 3,046.77 to MAD 3,191.85. This means a total cost to the employer of 4,144.34 MAD per employee, compared with 3,767.58 MAD previously.
“The new increases in the minimum wage are bound to put more companies in difficulty, particularly those operating in the textile and agri-food sectors. These companies are already suffocating under the weight of their social security and tax debts”, explains the owner of a factory employing several hundred workers paid the minimum wage. He goes on to “recommend tax and social incentives” for this category of company, which sometimes employs thousands of minimum wage earners.
However, it should be noted that the actual revaluation of the Minimum Wage (SMIG) and the SMAG (Minimum Agricultural Wage) is still subject to a decree which was due to be examined by the Government Council on Thursday December 26, for rapid publication in the Official Gazette. The thousands of companies concerned will have to set up their payroll systems on a legal basis. This is a recurring exercise on the eve of each increase in the minimum wage.
Hassan EL ARIF
