Morocco moves to institute unemployment benefits

Moroccan authorities, the employers’ association, CGEM, trade unions and the social security fund, CNSS, have finally agreed to institute unemployment benefits to ease the strain of the global financial crisis that is sparing no country.
The project to set up such an allowance was first tabled some 12 years ago but several obstacles have so far hampered its coming into being. It was only earlier this December that the partners agreed on the financing mode of this benefit.
The recipients will get an allowance in case they lose their job for economic or technical reasons. The allowance, amounting to 70 percent of their average monthly earnings over the last 36 months, will be granted to the person on the dole for a six-month period. The payout will not however exceed 100 per cent of the guaranteed minimum wage, which currently stands at DH 2,300.
Authorities, who say that the introduction of this benefit is part of efforts to support workers who lose their job and to help businesses facing up difficulties, are earmarking DH 250 million to enable the programme to go ahead.
The employer’s contribution has been set at 0.38% of the company’s social contributions. Employees will also make a contribution to fund the allowance, set at 0.19% of their salary, capped at DH 6,000.
To claim the allowance, the laid off worker must meet some requirements such as having lost his job involuntarily, be able to prove at least 780 days’ worth of contributions to the social security fund during the three years preceding the laying off date, 260 of which must have occurred in the year leading up to the dismissal. The applicant should also be registered as a jobseeker with relevant intermediation services, should not be entitled to a disability or retirement pension, and must be able to work.