Rabat — After months of negotiations between trade unionists, employers and the government, unemployment benefits will soon be introduced in Morocco.

The government has decided to double the amount of financing available, by setting aside 500 million dirhams over three years as an initial fund. The first payouts will be made in 2014.

Employees will have to contribute 0.19 per cent, while employers will have to contribute 0.38 per cent. Redundancy money will be paid out over a period of six months. It will be equivalent to 70 per cent of the average monthly wage over the past 36 months and will be capped at the level of the guaranteed minimum wage.

Recipients will have to demonstrate that they have paid contributions for 780 days, including 216 days during the previous year before losing their job. Redundancy pay will also include health coverage and family allowances.

The National Agency for the Promotion of Employment and Skills will also help the jobless find work. Training will be offered from the time when the recipient stops working.

"Redundancy pay is fair and necessary for many people," commented Jamal Belharech, the chairman of the employment and social relations committee of the General Confederation of Moroccan Businesses (CGEM).

CGEM believes that the benefit will make Moroccan workers more employable and make the market more fluid. Employers believe that the measures will help to reduce unemployment in the long term.

The measure is the first of its kind, Employment Minister Abdelouahed Souhail noted.

"This compensation will be modest initially, as it will be capped and paid for six months. But this is a huge step forwards, especially for the most vulnerable workers. We will provide retraining to jobseekers for six months," Souhail said.

Employees' opinions are divided over the introduction of redundancy pay from 2014. Mohamed Chebhi said that the measure will save many families from the torment of unemployment.

"Over the past few years, many employees have lost their jobs because of the crisis. They ended up penniless overnight and found themselves unable to meet their own needs and those of their families. It is important to receive compensation while looking for a new job," he said.

But for employees who earn high incomes, the fact that redundancy pay will be capped at the level of the guaranteed minimum wage means that it will not come as a great help to all workers who lose their jobs.

Hakim Joundoul, who works for a company, said there was a big danger that his boss could close his shop in the next few days due to the crisis.

"I earn 15,000 dirhams a month. If I lose my job, I will only receive 2,000 dirhams, which is a derisory level of compensation compared with my current income and my monthly outgoings," Joundoul said.