Increase in salaries of civil servants: 500 dirhams more from July

Public sector civil servants in Morocco will receive a salary increase of 500 dirhams from July 1, in accordance with the agreement reached between the government and the main trade union centers.

A first increase in July

According to Younes Frashine, a member of the Democratic Confederation of Labor (CDT), this increase of 500 dirhams represents the first tranche of a salary increase. This measure follows an agreement between the Moroccan government, the most representative trade unions, the Moroccan Confederation of Agriculture and Rural Development, and the General Confederation of Moroccan Enterprises.

The agreement provides for a general increase in salaries for civil servants in public administrations, local authorities and public institutions who have not yet benefited from a review of their salaries. This increase amounts to 1,000 dirhams net per month, paid in two installments: the first from July 1, 2024 and the second from July 1, 2025.

Increase in SMIG and SMAG

In addition to the increase in civil servant salaries, the agreement includes a 10% increase in the guaranteed minimum interprofessional wage (SMIG) in non-agricultural sectors, applied in two phases: 5% from 1 January 2025 and 5% from 1 January 2026. The guaranteed minimum agricultural wage (SMAG) will also benefit from a 10% increase, spread over two phases: 5% from 1 April 2025 and 5% from 1 April 2026.

Income tax review

The agreement also provides for a review of the income tax system from January 1, 2025 for employees, with specific measures aimed at improving the income of the middle class while maintaining the current status of professionals. This revision will include the increase in the tax-exempt net income bracket from 30,000 dirhams to 40,000 dirhams, thus exempting income below 6,000 dirhams per month.

In addition, the rest of the brackets of the scale will be revised in order to widen them and reduce the rates applicable to middle class incomes, thus allowing a reduction of these rates of approximately 50% compared to the current rates. The marginal income tax rate will also be reduced from 38% to 37%.

Reform of pension systems

Concerning the reform of pension systems, an agreement was reached to launch a reform by adopting a bipolar system (public sector and private sector), with consensus on the details of its content according to a participatory approach. The transition mechanisms to the new system will be defined, while preserving the rights acquired under the current systems until the reform comes into force, and by strengthening the governance of retirement systems according to good practices in this domain.

These measures are part of the April social dialogue agreement, implementing the commitments made in the agreement of April 30, 2022. The planned increases and the reforms envisaged demonstrate the commitment of the Moroccan government and social partners to improve the living and working conditions of employees in various sectors.

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