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    Gov't Launched Series of Measures to Protect Purchasing Power of Citizens, Reduce Social Disparities - Report

    28 Apr 2021

    Rabat - From the beginning of its mandate, the Government has been implementing a series of measures to protect the purchasing power of citizens and reduce social disparities, according to a report on the Executive's balance for 2017-2021.

    These measures, resulting from a 'successful' social dialogue, have benefited large categories of poor or middle-class families, says the report. These measures have helped support the purchasing power of the working class, regularize the situation of sectoral categories of civil servants, promote a significant increase in civil service salaries besides providing continued support for basic commodities and price checks.

    They have also helped reduce health expenses and rates of absolute poverty and precariousness while narrowing social disparities and improving the standard of living of Moroccan families by preserving their purchasing power during the novel coronavirus sanitary crisis.

    The report points out that the social dialogue, which resulted in the 2019 agreement, has led to a significant improvement in the purchasing power of the working class in the public and private sectors, stating that the Executive branch has been keen, since its entry into office, to resume social dialogue and institutionalize it.

    A series of measures have been taken for the benefit of employees in the private sector and civil servants, including a general increase of civil servants' wages (400 to 500 DH) according to grade, spread over three tranches, the last of which was disbursed in January 2021.

    Under this agreement, the overall cost of commitments relating to state employees has reached nearly 14.25 billion dirhams.

    Salaries in the sectors of industry, trade, services and agriculture underwent a 10% increase, while family allowances increased by 100 dirhams per child as of July 2019 for the benefit of public and private sectors employees. Also, the conditions for advancement and promotion were improved for categories of civil servants according to grade and sector.

    The Government's public policy has contributed, according to the report, to a significant increase (+ 24.38%) of the average net salary of civil service between 2010 and 2020, which increased from 6,550 dirhams to 8,147 DH (a yearly increase of 2.1%).

    Also, the minimum wage in the civil service has almost doubled during the same period, from 1,800 to 3,258 Dirhams (+ 81%).

    The report stresses that the Government has also raised the minimum retirement pension, as of January 1, 2018, to 1,500 DH, increased income from work accidents and occupational diseases and provided support to certain social categories such as widows, orphans, neglected divorced women and their children.

    The Government has increased university scholarships for students as well as scholarships allocated to trainees in vocational training since 2018. It has also generalized the 'Tayssir' program to fight against school dropout of students until junior high school.

    The Government has continued its support for basic consumer products while ensuring price stability, the document notes. The Executive branch has also supported the compensation fund, to which it has allotted 13 billion dirhams a year between 2017 to 2021 to subsidize the prices of butane gas, sugar and flour.

    According to the report, the basic materials and regulated services have not seen any significant increase in recent years as their prices have been controlled.

    To support the purchasing power of citizens, the Government has adopted a proactive policy to reduce spending on medicines, including lowering the prices of nearly 1,500 of the most consumed medications that are intended for the treatment of some serious and chronic diseases.

    The standard of living of Moroccan families has improved significantly in recent years and until 2019, finds the report, quoting a report published by the High Commission for Planning (HCP) in March 2021.

    The report also points out that the Government's efforts have made it possible to reduce poverty and precariousness rates.

    Regarding the preservation of the purchasing power of families during the Covid-19 sanitary crisis, the Government has implemented several measures, allocating aid for employees and families affected which yielded positive results, the report concludes.


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