In Morocco, MRE remittances can bring in as much as a job

For some Moroccan families, money sent by relatives living abroad is no longer merely a supplementary income. Its amount can now be comparable to that provided by a job paid at the minimum wage.

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In 2024, remittances received per working-age adult in beneficiary households were of the same order of magnitude as Morocco’s SMIG, according to the World Bank report on growth and employment in Morocco.

In other words, in some households, financial support from MREs may represent the equivalent of the income that a minimum-wage job would provide.

This is an average estimate, not an amount received by every family. The sums vary considerably depending on the households, the number of people living in them and the frequency of transfers.

More than 8% of the Moroccan economy

This comparison with the SMIG mainly shows the considerable place that MRE remittances have come to occupy in Moroccan families’ incomes.

Remittances received from abroad represented 5.4% of Morocco’s gross domestic product in 2019. Their share exceeded 8% of GDP in 2024, according to the World Bank.

These sums are used in particular to pay for daily expenses, healthcare, children’s education and housing. They also enable families to better withstand a job loss or a rise in the cost of living.

But when received remittances approach the amount of a minimum wage, they can also alter people’s relationship with work.

For example, a household member may refuse a very poorly paid job, wait for a better opportunity or remain outside the labour market for longer.

The World Bank thus points to a possible link between the increase in MRE remittances and the decline in Morocco’s labour-force participation rate. However, it does not present this money as the sole explanation for the phenomenon.

Difficulties in finding a job, low wages in some cases, family obligations and a lack of childcare solutions also play an important role.

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For beneficiary families, however, the finding remains striking: money sent by a relative living abroad can now weigh as much in the budget as a job paid at the SMIG.