Direct Social Assistance: Morocco Measures Its Impact on Formal Employment
Morocco is moving to a new phase in assessing its direct social aid system. On September 24, the National Social Support Agency (ANSS) launched a study aimed at measuring the initial effects of the new measures introduced in the direct social aid regime, particularly their influence on beneficiaries’ attitudes toward formal employment.
Funded as part of a World Bank project, this study follows the adoption of Law No. 41.26, which modifies the system established by Law No. 58-23. Interested firms have until October 12 at 10:00 AM to submit their applications for this mission.
Formal Employment at the Core of the Evaluation
The study will specifically aim to determine whether the new support measures help reduce the risk that an immediate loss of social aid discourages beneficiaries from seeking formal employment.
The newly introduced provisions include support for households that cease to meet certain eligibility criteria after the head of the household or their spouse has joined the private sector employee social security scheme.
The goal is to prevent a change in professional circumstances from leading to a sudden disruption of the household’s resources. Thus, the evaluation must determine whether this mechanism effectively influences the employment decisions of the households involved.
A Survey of Beneficiaries
The mission will not only focus on the amounts distributed or the number of households concerned. The selected firm will need to implement a quantitative survey of beneficiaries, analyze the collected data, and assess the initial effects of the new mechanism.
Particular attention will be given to the professional trajectories of the households and their perception of the financial risk associated with transitioning to formal employment. The results should also identify any potential challenges in implementation and the gaps between the reform objectives and its observed effects on the ground.
This evaluation comes at a time when the system has reached significant dimensions. By the end of 2025, nearly 4 million households will have benefited from direct social aid, totaling approximately 51 billion dirhams since the program’s launch. The affected households include approximately 5.5 million children and 1.7 million elderly individuals.
Evolving Aid Amounts
The level of allowances is also a crucial aspect in analyzing beneficiaries’ behaviors. For the first three children aged zero to five years or enrolled in school between six and twenty years, the aid has now reached 300 dirhams per child.
The amount is set at 200 dirhams for children aged six to twenty who are not enrolled in school. Additionally, a monthly minimum of 500 dirhams is guaranteed for households meeting eligibility criteria.
In this context, a household’s transition to formal employment may affect its eligibility for aid. The reform specifically aims to limit this threshold effect and prevent the prospect of an immediate decrease in disposable income from weighing on professional choices.
Economic Inclusion as Another Challenge
Previous work by the ANSS has also highlighted the importance of this issue. The agency estimated in 2025 that 2.3 million beneficiary households could potentially embark on a path toward economic inclusion.
A survey conducted among 1,800 households revealed that 40% of respondents wanted assistance in finding employment or engaging in income-generating activities. Meanwhile, 60% expressed a preference for stable employment over social aid.
These figures provide additional context for the new study, which will need to verify whether the mechanisms introduced by Law No. 41.26 effectively facilitate this transition.
The World Bank Supports the Evaluation
The World Bank is financing this study as part of its support for the Moroccan social protection system. Its involvement includes assisting the ANSS in evaluating the regime and utilizing the data necessary for its development.
The launch of this mission thus reflects an evolution of the system: after the establishment and expansion of social transfers, the focus now is on measuring their concrete effects on household behaviors.
The study will need to provide insights that help determine whether the new measures sufficiently reduce the financial risks associated with transitioning to formal employment. Its findings could contribute to potential future adjustments of the direct social aid system.
