86% of Moroccan retirees to profit from full earnings tax exemption in 2026
Mustapha Baitas, the Minister Delegate to the Head of Government for Relations with Parliament and Government Spokesperson, introduced on Thursday that the entire exemption of pensions from earnings tax is a part of the broader earnings tax reform. This follows a earlier reform for workers, which is predicted to price 5 billion MAD in 2024.
In a press briefing held on Thursday following the federal government’s assembly, Baitas defined that the 2025 Finance Law features a provision for the total exemption of pensions and life annuities paid below the essential pension methods, efficient January 1, 2026. However, in 2025, a 50% discount can be utilized to the earnings tax on pensions and retirement earnings earned throughout that 12 months.
Baitas additionally identified that this measure alone will price over 1.2 billion MAD and profit 164,744 retirees. Around 86% of retirees registered with the Moroccan Pension Fund can be exempt from this tax.
He famous that workers are the most important contributors to earnings tax. With the federal government’s latest reforms, it has turn out to be potential for different sectors—not essentially workers, however employees—to profit.
Baitas talked about that the common profit for workers and employees is roughly 400 MAD. There can be some teams that may profit much less from this reform, and a few teams that may profit extra.
The authorities spokesperson clarified that “efforts have been intensified to manage earnings tax from sectors that had not been paying for years.
He defined that “the government has been implementing the recommendations of the national tax dialogue and applying the legal provisions of the framework law on tax reform.”
The final aim, in accordance with the Minister Delegate answerable for Relations with Parliament, is “to broaden the tax base and reduce the burden by bringing new taxpayers into the system, given the shortcomings of the previous tax procedures.”
As to the problems raised in regards to the social safety undertaking, Baitas talked about that “this comprehensive project has been strongly supported by the government under the directives of the King.”
He added, “a country that has achieved significant gains in terms of infrastructure and economic reforms is naturally poised to embrace this new endeavor,” explaining that “today, 3,769,000 non-salaried workers are benefiting from this project.”
Baitas acknowledged that “’more efforts need to be made to increase this number,” noting that “11,048,656 individuals who are unable to afford the subscription fees are currently benefiting from health coverage.”
The minister defended, “there is no system in the world that succeeds at 100 % in its first year, but this government, through continuous and diligent work on reforming laws and decrees and implementing measures, aims to move forward swiftly to reform this system that now concerns 11 million Moroccans, which is about 30% of Moroccans; and we are talking about a system that is 100% funded by the state.”
