20110425
reuters

RABAT (Reuters) - Morocco's government has agreed to raise public sector salaries and the minimum wage as growing demands for reform put pressure on the Arab world's longest-serving dynasty.

State television channel RTM said on Tuesday Prime Minister Abbas Al Fassi had signed a draft memo with unions over the wage deal.

It is the latest in a series of handouts as King Mohammed's government tries to prevent a spillover of popular revolt from other north African countries. Thousands of Moroccans marched peacefully on Sunday to demand reforms.

State television said public sector employees would get a net 600 dirhams per month increase as of May 1. The minimum pension for public and private sector pensioners would go up almost 70 percent to 1,000 dirhams per month.

The minimum wage for private sector employees would be raised by 10 percent from July and 5 percent at the start of 2012, it added. The current minimum wage is 2,110 dirhams.

Finance ministry officials could not be reached for comment on the potential cost of the package.

A government source had told Reuters that unions' demands of benefits and wage hikes for public civil servants alone were worth 43 billion dirhams a year.

State television also quoted Agriculture Minister Aziz Akhennouch as saying the debt of 100,000 farmers would be lowered and rescheduled.