Social Security agency: Last-chance amnesty
It is time for a new social «amnesty». To be more precise, these are rebates on penalties, surcharges, and penalty payments that apply in the event of non-payment of social security contributions. Penalties start to accrue as from the first month: 3% of the amount of contributions for the first month or fraction of a month overdue, and 1% for each additional month. For the AMO (Compulsory Medical Insurance) scheme, the penalty is 1% for each month overdue.
Described as a last-chance «amnesty», the new program, which is expected to generate more than 1 billion MAD (USD 100 million), is aimed at all companies and is due to run until December 2024, with the aim of resetting the balance for companies owing sums to CNSS, provided they undertake to pay the amounts due.
The CNSS’ history dates back to 1969 (some companies have even disappeared!), and the weight of late-payment surcharges, collection fees, and penalty payments is weighing heavily on the debt structure. According to the company’s directors, over 60% of the total amount due for collection is made up of late payment surcharges. « Penalties are high, and companies find themselves trapped and at risk of falling into the informal sector. The system validated by the Board of Directors maintains penalties at a normal level «, stresses Mehdi Tazi, Vice-President General of the Moroccan Employers Association (CGEM).
According to some directors of CNSS, this type of arrangement will no longer be renewed.
« It is unfair to companies that regularly pay social security contributions, and it distorts competition «, says Mohamed Alaoui, a member of the national secretariat of the UMT workers’ union.
In detail, the scheme provides for two measures: the first covers late payment penalties and collection costs, while the second covers penalty payments. If the debt is paid in full, CNSS is to grant a 60% discount on penalties and collection costs, and a 90% discount on penalty payments. If a company undertakes to pay within less than 24 months, it should obtain a 50% discount on penalties and collection costs, and an 80% discount on penalty payments. The scheme also provides for a longer period, of up to 60 months. For this, the company must provide the necessary guarantees. In any case, companies that commit to a payment program longer than 24 months will benefit from a 40% reduction in penalties and collection costs, and a 70% reduction in penalty payments.
At the level of CNSS, the penalty is set at 50 dirhams for each insufficiency, omission, or delay in declaring wages. The penalty applies for each month or fraction of a month of delay. For companies that are subject to the AMO (Compulsory Medical Insurance for the destitute) scheme, the penalty is 100 Dirhams for each month, or fraction of a month of delay. The new « rebate « program provides for a significant reduction in on-call time, the aim being to encourage the company not to slide into informality…
Khadija MASMOUDI
