Written by 1:21 pm Economy

Teacher pay increase is an economic investment despite inevitable strain on state budget, says expert

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The government’s decision to raise teachers’ salaries by MAD 1,500 in two installments is prompting questions about its potential impact on the state budget and how the implementation process will unfold.

“This salary increase will undoubtedly have a noticeable impact on the state budget, considering the substantial workforce in the Ministry of Education, which happens to be one of  the sectors with the highest number of employees,” said Sami Amine, an economics expert.

According to the expert this increase comes amidst challenging circumstances, including the repercussions of the quake, the COVID-19 pandemic, and the high inflation rate.

Sami further explained that while the current impact might seem negative, this wage increase can be seen as a profitable investment made by the state. 

The expert suggests that the raise serves as an investment in both economic and social improvement, especially considering the challenging economic conditions caused by various factors.

“The wage increase can be covered from the surplus in the state budget or sectoral budgets, and its impact on public finances can be alleviated through attracting investments, raising taxes on certain commercial services, or resorting to borrowing or aid,” said Sami.

Sami stressed the importance of this wage increase, highlighting that it will yield long-term benefits for Morocco since education produces future professors, engineers, and doctors. “Improving teachers’ conditions means enhancing several other sectors,” he added.

Regarding the potential adjustment of the financial law, the expert noted that it remains a legal question and ultimately depends on the government’s decision to amend the financial law or not.

As for the demands for a further increase of MAD 3000 in teachers’ salaries and the reimbursement of wage deductions since 2018, the expert considers these demands as “unreasonable and unrealistic.”

Sami said that any discussions about wage increase should be realistic and within the framework of the available financial resources, such as the possibility of the reimbursement of previous wage deductions. 

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