2025 Changes to Income Tax and Minimum Wage in Morocco

The Moroccan government continues to adjust its labor laws and policies on taxes to align with socio-economic goals, with significant updates taking effect in January 2025. These reforms impact both the public sector and private sector, influencing employment contracts, payroll management, and investment considerations for foreign investors. Below are the highlights of these revisions.

1. Guaranteed Interprofessional Minimum Wage in Morocco (SMIG)

As part of Morocco's labor reforms, the Guaranteed Interprofessional Minimum Wage (SMIG) increases as follows:

• Gross Monthly SMIG until December 2024: 3,111 dirhams (MAD)
• Gross Monthly SMIG from January 2025: 3,266.55 dirhams (MAD)

These changes align with Morocco’s broader commitment to strengthening the social state by enhancing worker protections and ensuring compliance with the labor code.

‍2. Changes in the Income Tax Table

‍The new income tax table, effective from January 1st, eases the burden on low and middle classes. The revised structure is as follows;

‍3. Enhanced Family Allowance Deductions

‍The 2025 reforms include enhancements to family allowance deductions. The deduction per dependent increased from MAD 360 to MAD 500 with a maximum allowable deduction of 3,000 dirhams per annum

‍Conclusion

‍Morocco’s statutory updates for the new year mark a significant milestone in labor and tax reforms. Employers and other stakeholders are encouraged to prepare early to ensure compliance and support for their workforce.

Frequently Asked Questions

What is the current minimum wage in Morocco, and does it differ between sectors?

As of January 2025, Morocco’s Guaranteed Interprofessional Minimum Wage (SMIG) is 3,266.55 dirhams (MAD) monthly, up from 3,111 MAD. The minimum wage varies by sector, with SMAG applying to agricultural workers. These updates align with Morocco’s labor code and efforts to strengthen worker protections.