Moroccan Minimum Wage Hike Concerns SMEs Amid COVID-19 Economic Strain

This revaluation of the SMIG and the SMAG (minimum wage in agriculture) is enacted in two phases at a rate of 5% each time: the first tranche in July 2019 and the second, on July 1 next. This revaluation especially penalizes labor-intensive companies, reports l’Économiste.

Thanks to this increase, the SMIG in industry, commerce and the liberal professions will rise to 14.81 DH per hour as of July 1, which is equivalent to about 2,828 DH gross (2,637 DH net) per month, taking into account a work duration of 191 hours per month. In the agricultural and forestry sector, on the other hand, the minimum daily wage will be increased to 76.70 DH.

The other good news is that "domestic workers will also benefit from this revaluation of the minimum wage". The same daily newspaper, however, recalls that this increase in the SMIG and the SMAG cannot be postponed by virtue of Article 6 of the law on the state of emergency dealing with the postponement of legislative and regulatory deadlines. It is an effective date and not a deadline, it is indicated.

This second tranche of increase unfortunately coincides with a situation marked by a drop in activity and income for companies. In total, 130,000 companies have resorted to the Covid-19 allowance to pay salaries. The impact of the revaluation of the minimum wage will be more felt by activities that employ a large number of employees paid at the SMIG and whose personnel costs are often high.

The most affected companies will be SMEs. "The entry into force of the revaluation could complicate the accounts of companies emerging from a health and economic crisis with immeasurable consequences," supports the same daily.