News
Monday 22 February 2021

Generalization of Social Protection will Cost DH 51 bln per Year, Minister Says

Generalization of Social Protection will Cost DH 51 bln per Year, Minister Says

The generalization of social protection in Morocco will cost 51 billion dirhams per year, said Monday in Rabat minister of Economy, Finance and of Administration Reform, Mohammed Benchaaboun.

Presenting the framework bill 09.21 relating to social protection before the finance, planning and economic development committee at the House of Advisors (upper house), Benchaaboun pointed out that this sum will be invested to fund basic compulsory health insurance (14 billion), family allowances (20 billion), the broadening of the base of members of the pension scheme (16 billion) and access to compensation for loss of employment (1 billion).

The financing of this reform is based on two mechanisms, the first consists of an affiliation system (28 billion dirhams), which concerns people having the capacity to participate in the financing of social protection, while the second system (23 billion dirhams) is based on solidarity and concerns people who do not have the capacity to participate in the financing, the minister explained.

The financing of this project is based on the axes of reforms and the timetable defined by His Majesty King Mohammed VI, namely the generalization of compulsory basic health insurance during the years 2021 and 2022 to reach 22 million additional beneficiaries, the generalization of family allowances during the years 2023-2024, to cover approximately 7 million children of school age, the widening of the base of members of the pension schemes in 2025 in favor of five million working people and the generalization of compensation for loss of employment to cover anyone with stable employment, he said.

The generalization of the basic compulsory health insurance will be done through the broadening of the base of its beneficiaries, to cover the vulnerable categories benefiting from RAMED, and through a complete implementation of this insurance for the category of professionals and self-employed workers and self-employed persons, who exercise a liberal activity, while adopting the necessary measures in this regard, in particular through the simplification of contribution procedures.

The first quarter of 2021 will see the integration of 800,000 traders and artisans, while 1.6 million farmers and 500,000 artisans will be integrated during the second and third quarters, he said, adding that during the 3rd and 4th quarters, the integration of professionals of the transport sector (220,000) and people exercising liberal and regulated professions (80,000) will start, while the year 2022 will see the full integration of vulnerable categories benefiting from RAMED, namely 11 million people.

With regard to family allowances, indemnities for the protection of risks related to childhood and fixed allowances stipulated by this framework law will be implemented, in particular through the reform of support programs targeting families for the protection of risks related to childhood.

Regarding the broadening of the base of beneficiaries of pension schemes, Benchaaboun noted that this operation will cover employed people who do not benefit from any pension and this through the full implementation of the pension scheme relating to professionals and self-employed workers and to self-employed persons exercising a private activity, to cover all the people concerned.

MAP 22 February 2021