Morocco’s CNSS Approves 5% Pension Increase and Eases Retirement Eligibility

Increase in the retirement pension by 5% and a minimum of 100 dirhams, with retroactive effect to January 1, 2020 - lowering the threshold of the number of days contributed to access retirement. These are the two important decisions endorsed by the CNSS Board of Directors at its meeting on September 9. Regarding the first measure, it should be noted that the CNSS Board of Directors had decided in 2019 to increase the retirement pension for implementation in January 2020, which had not been effective until now. With the decision taken by the CNSS, this backpay will be paid to all pensioners active as of December 31, 2019. According to simulations carried out at the CNSS level, the Fund must release an amount of 748 million dirhams in 2022, 23 billion dirhams for the next ten years (2022-2031) and 8.25 billion over a period of 60 years (2022-2082).

By endorsing the lowering of the threshold of the number of days contributed to claim a pension from 3,240 to 1,320 days, with the possibility for those who have not reached the new threshold of 1,320 days to recover their employee contributions, as well as the employer’s share, the CNSS Board of Directors has remedied a great injustice. According to a government source, "this decision will have a direct impact on nearly 60% of CNSS contributors (a population of 2 million people) who do not manage to accumulate the 3,240 days and who, under the old regime, were only entitled to employee contributions," reports Médias24.

The activation of these two decisions is subject to the publication of the implementing decrees by the Ministry of Economy and Finance.