Morocco improves living conditions for retired pensioners
Morocco is continuing its efforts to improve the social conditions of the population, through the Finance Law of 2025.
The Moroccan state will apply a total income tax exemption for retirees' pensions, which is good economic news for this group.
This new measure applicable to pensioners' income represents a financial cost of 510 million dollars for the public coffers and will be borne by the Moroccan state.
Morocco is thus reducing the tax burden on retirees by applying this tax deduction on pensions following the agreement reached in Parliament, which took into account the social and trade union pressures exerted with a view to improving the purchasing power of the elderly, something that undoubtedly relieves their economies and represents a significant relief.
The application of this tax exemption for pensioners' income will be implemented gradually over the next two years after the Moroccan government approved the amendments of parliamentarians and the General Confederation of Moroccan Enterprises (CGEM).
Fouzi Lekjaa, minister delegate in charge of the Budget, announced that 50% of the exemption will be applied in 2025 and the remaining half in 2026. He also stressed that this measure, which benefits retired pensioners, and the tax reduction also applicable to salaried workers, will have a total impact of 970 million dollars, an amount that will be assumed by the Moroccan state.
The amendments, according to the parliamentary majority group represented by Prime Minister Aziz Akhannouch, in its proposal to amend article 57 of the General Tax Code, aim to completely exempt pensions and lifetime income paid in the framework of basic retirement systems, with the exception of those paid in connection with other supplementary retirement systems.
The legislative text presented by the parliamentary group, with the amendments tabled during the vote on the draft Finance Law for the year 2025, also proposes a 50% reduction of the supplementary amount of tax due, starting next January.
The group explained that, on a transitional basis and as an exception to any contrary provision, the holders of pensions obtained under the basic retirement systems, with the exception of those obtained under the supplementary retirement systems, benefit from a 50% tax reduction on the aforementioned pensions and the income obtained for the year 2025.
The CGEM and the trade unions welcomed this decision, which benefits an important sector of society.
The government of Aziz Akhannouch confirmed that the Finance Law 2025 and its provisions reinforce the social pillars of the Moroccan state.
The Finance Law reflects the commitment of the Moroccan Executive to implement what was agreed in the social dialogue conducted with trade unions and employers, especially with regard to wage increases, as a financial envelope of USD 1 billion was allocated to continue implementing these obligations in 2025, with total commitments of some USD 4.5 billion by 2026.
The Moroccan government continues to meet its obligations to implement the tax reform aimed at improving the purchasing power of important layers of society.
