Morocco expands welfare state under royal leadership

Morocco continues to push forward its ambitious social protection reform,placing inclusive welfare systems at the core of the country’s development strategy and as a pillar of national solidarity.

In implementation of Royal directives,the Moroccan government has accelerated the rollout of a comprehensive social protection program,whose rollout kicked off in April 2021.

This program includes mandatory health insurance,direct financial aid to vulnerable households,and the extension of pension coverage to self-employed workers and informal sector participants.

As of May 2025,the program has reached 3.9 million households,with 2 billion dirhams disbursed in direct support

The government has also facilitated financial inclusion by enabling 75% of beneficiaries to open bank accounts through low-cost payment institutions

To support this effort,Morocco mobilized additional funding through the 2025 Finance Law. This includes reallocating resources from other social programs,leveraging solidarity contributions from corporate profits,and reforming the subsidy system.

The government is also preparing to expand unemployment benefits and retirement pensions,while continuing the reform of the national health system,including the construction of new hospitals in underserved regions

In a major legislative step,Parliament recently approved Law 02.24,which modernizes the governance of the National Social Security Fund (CNSS) and strengthens its role in managing the expanded protection system.

This law introduces new oversight mechanisms,digitalization of services,and the ability for CNSS to manage other social protection schemes under specific agreements.

Additionally,the upper house of Parliament passed Law 54.23,which unifies the management of basic mandatory health insurance under CNSS,streamlining services and improving transparency.

The Mohammed V Foundation for Solidarity,chaired by the King,remains a key actor in supporting the most vulnerable. Its work complements the broader momentum initiated by the National Human Development Initiative (NHDI),which has been instrumental in reducing poverty and improving human capital.

In the wake of the 2023 earthquake,the King also led a national solidarity response,with $12 billion allocated for reconstruction and economic revitalization in affected areas. The Royal Armed Forces were deployed to establish field hospitals and deliver urgent aid.

This sweeping reform is not only a response to immediate social needs but also a strategic investment in Morocco’s long-term resilience and equity.