Direct Social Assistance: Morocco Assesses the Impact on Formal Employment
Morocco Advances to a New Stage in Evaluating Direct Social Assistance
Morocco has entered a new phase in assessing its direct social assistance system. The National Social Support Agency (ANSS) launched a study on September 24 aimed at measuring the initial effects of the new measures introduced in the direct social assistance regime, particularly their influence on beneficiaries’ attitudes towards formal employment.
Funded under a World Bank project, this study comes following the adoption of Law No. 41.26, which modifies the system established by Law No. 58-23. Interested firms have until October 12 at 10 a.m. to submit their applications for this mission.
Formal Employment at the Core of the Evaluation
The study will specifically determine whether the new support measures help reduce the risk that an immediate loss of social benefits discourages beneficiaries from accessing formal employment.
The introduced provisions include support for households that cease meeting certain eligibility criteria after the head of the household or their spouse becomes affiliated with the social security system for private sector employees.
The goal is to prevent a sudden disruption of household income due to a change in professional circumstances. Thus, the evaluation will assess whether this mechanism effectively influences the employment decisions of the affected households.
A Survey of Beneficiaries
The mission will not solely focus on the amounts distributed or the number of households affected. The selected firm will need to conduct a quantitative survey of the beneficiaries, analyze the collected data, and measure the initial effects of the new mechanism.
Particular attention will be paid to the professional trajectories of households and their perception of the financial risks associated with transitioning to formal employment. The findings should also help identify potential difficulties in implementation and the discrepancies between the reform’s objectives and its actual outcomes on the ground.
This evaluation is occurring at a time when the program has reached significant dimensions. By the end of 2025, nearly 4 million households were projected to benefit from direct social assistance, with a cumulative amount of approximately 51 billion dirhams since the program’s launch. The affected households included around 5.5 million children and 1.7 million elderly individuals.
Evolving Assistance Amounts
The level of allowances is also a crucial factor in analyzing beneficiary behaviors. For the first three children aged zero to five years or those attending school between the ages of six and twenty, assistance now amounts to 300 dirhams per child.
The amount is set at 200 dirhams for a child aged six to twenty who is not enrolled in school. Additionally, a minimum monthly amount of 500 dirhams is guaranteed for households that meet the eligibility criteria.
In this context, transitioning to formal employment can impact a household’s eligibility for assistance. The reform specifically aims to limit the threshold effect and prevent the prospect of an immediate decrease in disposable income from influencing professional choices.
Economic Inclusion as Another Challenge
Previous work by the ANSS also highlights the significance of this issue. The agency estimated in 2025 that 2.3 million beneficiary households could potentially enter a path toward economic inclusion.
A survey conducted with 1,800 households had indicated that 40% of respondents wished to receive support for employment or income-generating activities. Concurrently, 60% prioritized stable employment over social assistance.
These insights provide additional context for the new study, which will verify whether the mechanisms introduced by Law No. 41.26 genuinely facilitate this transition.
World Bank Supports the Evaluation
The World Bank is funding this study as part of its support for Morocco’s social protection system. Its intervention includes assisting the ANSS in evaluating the regime and analyzing the data needed for its evolution.
The launch of this mission signifies an evolution of the system: after the establishment and expansion of social transfers, the focus now shifts to measuring their tangible effects on household behaviors.
The study will specifically aim to provide insights on whether the new measures sufficiently reduce the financial risk linked to transitioning to formal employment. Its conclusions could contribute to potential future adjustments of the direct social assistance system.
