Other policies of formalisation

Health insurance

The compulsory health insurance scheme (AMO) covers all or part of the costs of illness, accidents and maternity for insured persons and their family members. The Compulsory' Health Insurance Plan is financed by the levy of contributions on income. Basic medical coverage applies to employees and pensioners in the public sector [National Fund of Social Welfare Organizations (CNOPS: Caisse Nationale des Organismes de Prevoyance Sociale)] and of the private sectors (CNSS). Since 2012, the medical assistance scheme called RAMED benefits poor and vulnerable people.

The CNOPS manages the compulsory health insurance (AMO) for the public sector in accordance with the provisions of Law 65-00. The CNSS (Caisse

Nationale de Securite Sociale) is a public institution that manages the mandatory social security scheme for all private sector formal employees in Morocco. The CNSS is under the administrative supervision of the Ministry of Employment. It is responsible for family allowances, short-term benefits (daily benefits in case of sickness or accidents, occupational diseases, daily allowances in case of maternity and allowance in the event of death) and long-term benefits (pensions and disability and survivor’s pensions).

This Medical Assistance Plan (Regime d’Assistance Medicale: RAMED) is based on the principles of social assistance and national solidarity for the benefit of the poor. It allows an economically disadvantaged population to benefit from basic medical coverage that provides free medical care and services available in public hospitals, health centres and health sendees under the state both in the event of illness, emergency or during hospitalisation. In this context, mechanisms for allocating this right are well defined to identify beneficiaries and effectively target the neediest households. Eligibility is achieved through the granting of a family card with a three-year eligibility period giving entitlement to healthcare according to a well-defined basket of care.

To be eligible for RAMED, applicants must meet certain conditions. They must not benefit from any compulsory health insurance scheme either as insured persons or as entitled persons and must be recognised on the basis of some pre- established eligibility criteria based on the place of residence (urban or rural) that they do not have sufficient resources to meet the costs of care. In urban areas, they must have an annual income of less than 5,650 dirhams per person in the household, after weighting of the declared income, including transfers, by household socio-economic variables and having a score of socio-economic conditions (based on living conditions of the household) below a certain threshold. In rural areas, applicants must have a patrimonial score, calculated on the basis of all the elements constituting their assets, below a certain threshold per person in the household and also have a score of household living conditions below a certain level. These criteria define whether the candidate is poor or vulnerable. “Poor” households receive the RAME1) card free of charge, while “vulnerable” households must pay an annual contribution of 120 dirhams per person, within the limit of 600 dirhams per household and per year.

In 2013, one year after its launch, RAMED covered nearly 3,320,000 people and more than 6,540,000 in 2014, a doubling from one year to the next. As of 30 November 2016, the cumulative number of registered persons has grown to more than 10 million since the beginning of the process, more than 4 million households, including 6,345,525 people with active cards (Observatoire National du Developpement Humain, 2017). Moving away from the informal sector and to a formal sector that pays minimum wages or even below minimum wages (for domestic employees for example) implies giving up the RAMED because eligibility would be lost based on income.

The pension system

The pension system covers the risks of loss of income due to old age, disability that is not caused by an accident at work and death. The pension system in Morocco is characterised by its fragmentation with several schemes for different categories of workers and with different methods of financing, calculation of benefits and conditions of grant. The pension scheme for civil and military officials is administered by the Moroccan Pensioners’ Fund. Pensions for private sector workers are managed by the CNSS, a public institution under the supervision of the Ministry of Employment and Social Affairs. The Collective Retirement Allowance Plan manages pensions for non-state employees and local authorities and all employees of public institutions subject to financial control of the State. The Moroccan Inter-Professional Retirement Fund, managed by an employers’ association, is an optional pension plan open to CNSS members.

Family allowances are exclusively financed by the employer. Family allowances are paid by the state and form part of the remuneration for public sector employees, corresponding to 8.1 per cent of the salary' of the public sector employees. The CNSS pays family allowances for private sector employees.

Benefits for loss of employment

The unemployed can receive a loss of employment benefit (IPE) for up to six months and trainings support by ANAPEC and the OFPPT (Office de la Formation Professionnelle et de la Promotion du Travail) to help them re-enter the labour market. The loss of employment compensation was instituted in 2014. The purpose of this compensation for loss of employment (IPE) is to allow a person insured by the CNSS to be compensated for six months for loss of employment. It corresponds to 70 per cent of the salary' obtained by the insured during the last 36 months of his activity. The monthly amount of compensation cannot exceed the amount of the legal minimum wage.

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