Morocco: Loss-of-job indemnities exceed $200 million since 2020 amid reform delays
Morocco’s unemployment indemnities have surpassed 2 billion dirhams ($200 million) since 2020, reaching 2.085 billion dirhams through October 1, 2025, according to National Social Security Fund data. This escalating cost reflects both increasing number of beneficiaries and rising average payment amounts, highlighting growing employment precarity concerns.
New beneficiaries declined slightly to 22,003 in 2021 before steadily increasing to peak at 27,498 individuals in 2024. The first half of 2025 already recorded 13,645 new recipients, projecting totals exceeding 27,000 for the full year. Average monthly payments rose from 2,543 dirhams in 2020 to 2,889 dirhams during first-half 2025, representing 13.6% growth.
Annual expenditures increased from 362 million dirhams in 2020 to 434 million dirhams in 2024, with 174.6 million dirhams spent during 2025’s first six months. Another concerning indicator shows average beneficiary work tenure stable around 5.6 years between 2020-2024 before dropping to 4.43 years during first-half 2025, potentially signaling increased employment precarity affecting less experienced workers.
The Loss of Employment Indemnity (IPE) program, launched in 2014 and managed by CNSS, facilitates professional reinsertion for private sector employees losing jobs involuntarily. The system provides benefits for maximum six months while recipients actively seek new positions. Eligibility requires 780 days of declared salaries during 36 months preceding job loss, including 260 days during the last 12 months.
Monthly indemnity equals 70% of reference salary averaged over 36 months, capped at legal minimum wage. Applications must be submitted within 60 days following job loss. Indemnified periods count toward insurance coverage including health insurance, family allowances, and retirement.
Despite framework law provisions for 2025 generalization to all stable employment with relaxed access conditions and expanded beneficiary bases, reform remains unimplemented eleven years after launch.