The Moroccan government plans pension reform

The Moroccan government is planning the reform of the pension system, as indicated by the Minister of Economy and Finance, Nadia Fettah Alaoui. 

The minister pointed out that it is time to reform the pension funds, a complex issue that requires the collaboration of all sectors involved, both public and private.

Nadia Fettah told the Moroccan Parliament that the reform timetable will be presented in January 2025 and that the Moroccan government will present a preliminary proposal for pension reform based on the results of the social dialogue between the actors involved in the issue, such as social partners, employers and public authorities. 

The Minister of Economy and Finance explained that among the most important points of the reform are the reform of the retirement system in the public and private sectors and the improvement of governance and management. 

She confirmed that the government is committed to all the agreements signed in the social dialogue, expressing its aspiration to reach a definitive solution to this problem during the next round of social dialogue.

In view of the urgency to reform the pension system, Nadia Fettah Alaoui said that there have been delays in this matter since previous governments and that this delay has been dragging on for years, which the current government is trying to remedy as soon as possible. 

Thus, the timetable and preliminary framework for pension reform will be announced in January 2025. 

The new initiative seeks to respond to long-standing questions regarding the reform of Morocco's pension system through structural changes. 

As for the details of the plan, Nadia Fettah mentioned that the reform will focus on the creation of two separate pension centres: one for public employees and one for private sector workers. 

The proposal also seeks to establish a gradual transition to a new system, safeguarding current rights and accrued benefits while introducing improvements in management. 

Nadia Fettah pointed out that recent social dialogue negotiations, which resulted in wage increases, have temporarily relieved pressure on pension funds by extending their solvency by two to three years. To further stabilise the system, the government has allocated 2 billion dirhams (190 million euros) to the Moroccan Pension Fund (CMR).

This reform is intended to improve the current conditions of retirees and to guarantee the retirement pension system in the long term.

The reforms aim to establish an ‘equitable and resilient system’, as explained by the Moroccan Minister of Economy and Finance.

Morocco has recently taken steps to improve the living conditions of retirees. Thus, the Moroccan state decided to apply full income tax exemption on pensioners' pensions, as stipulated in the Finance Law of 2025.

Morocco thus reduces 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 in order to improve the purchasing power of the elderly. A determination that costs the Moroccan state a little over 5 billion dirhams (around 500 million euros).