-
17:20
-
16:50
-
16:20
-
15:50
-
15:20
-
14:50
-
14:20
-
13:20
-
12:50
-
12:20
-
11:50
-
11:20
-
10:50
-
10:40
-
10:20
-
09:50
-
09:09
-
08:50
-
08:20
-
07:50
Follow us on Facebook
Morocco spends over MAD2 billion on unemployment benefits, urgent reform still pending
Since 2020, Morocco has allocated more than MAD2 billion to its unemployment benefit program, known as Indemnité pour Perte d’Emploi (IPE), yet reforms to expand and improve the system remain pending. Managed by the National Social Security Fund (CNSS), the scheme has so far reached only 77,000 beneficiaries, exposing the limits of current coverage and the pressing need for an overhaul.
A restrictive system with limited reach
To qualify for IPE, individuals must have contributed to the CNSS for at least 780 days in the past three years, including 260 days in the previous 12 months. The monthly allowance is set at 70% of the average salary over the preceding 36 months, capped at the legal minimum wage, which was MAD2,543 in 2020.
Despite consistent annual disbursements of 25,000 to 27,000 new beneficiaries, the program covers only a fraction of unemployed Moroccans. According to the International Labour Organization (ILO), the scheme effectively reaches just 1.4% of the unemployed workforce, primarily salaried employees, leaving many vulnerable workers without support.
Challenges and barriers
Administrative hurdles and strict eligibility requirements have contributed to a high rejection rate, with nearly half of applications denied in 2023. Moreover, losing employment often results in the loss of CNSS health coverage, compounding the hardships faced by unemployed workers and highlighting the need for a more inclusive social protection framework.
Government plans for reform
The Moroccan government has proposed comprehensive reforms to modernize the unemployment benefit system. Objectives include expanding coverage to all workers in stable employment, simplifying eligibility criteria, and increasing benefit levels. An annual budget of MAD51 billion has been earmarked for social protection, with MAD23 billion allocated from the state budget by 2025.
The broader agenda also encompasses the generalization of mandatory health insurance and direct social assistance. Planned social protection expenditures are set to rise to MAD39 billion in 2025, with projections exceeding MAD41 billion in 2026. However, implementation delays mean the timeline for full reform remains uncertain.
As stakeholders continue to advocate for timely action, Morocco faces a critical juncture: the successful modernization of unemployment benefits could establish a more inclusive, effective social safety net, but achieving this goal requires decisive government intervention.
