Starting from January 2025, significant changes are set to impact both public and private sector employees in Morocco. These include a 5% increase in the minimum wage (SMIG) and new adjustments to income tax, following the social dialogue agreement signed in April 2024.
The first wage hike will raise the monthly salary from 3,112 to 3,267.6 dirhams. After social security contributions, the net wage will be approximately 3,047 dirhams.
The increase is aimed at easing the cost of living and boosting domestic consumption, although experts question its effectiveness in improving purchasing power, especially in large cities where living expenses remain high.
Additionally, the 2025 finance law introduces a 50% reduction in taxes on pensions and income from annuities, benefiting retirees with a projected tax relief of 1.2 billion dirhams.
For active workers, the tax system will also be restructured to provide relief, with income below 6,000 dirhams exempt from taxes.
The law also introduces a “food basket” subsidy of 40 dirhams per day for low-wage sectors to combat inflation, especially in food prices.
Tax incentives for companies hiring young graduates and investing in vocational training, particularly in technology and environmental sectors, aim to reduce unemployment and strengthen the job market.
These measures align with Morocco’s broader economic strategy to boost productivity and competitiveness while addressing inflation’s effects on household budgets.
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