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Moroccan Government Announces Wage Increases and Tax Relief for Workers
The Moroccan government has unveiled a significant package of wage increases and tax reforms designed to improve the financial well-being of public sector employees and workers across various industries. This announcement follows a series of social dialogue meetings held in April, highlighting the government's dedication to addressing the challenges faced by the Moroccan workforce.
A central aspect of this initiative is a substantial wage increase of MAD 1,000 for public sector workers who have not received salary raises in recent years. This pay raise will be implemented in two stages: the first will take effect on July 1 of the upcoming year, with the second following on July 1, 2025.
To further ease the financial burden on workers, the government has also approved a reduction in income tax, with middle-income earners set to gain up to MAD 400 per month. This move is expected to provide significant relief to households struggling with the rising cost of living.
These reforms extend beyond the public sector, encompassing minimum wage hikes in the industrial, commercial, freelance, and agricultural sectors. The legal minimum wage, known as SMIG, will see a 10% increase in this round of social dialogue, reinforcing the government's commitment to enhancing the livelihoods of workers across different industries.
The minimum wage increase for non-agricultural activities will be implemented in two phases: the first 5% increment will start on January 1, 2025, and the second will follow on January 1, 2026. Similarly, the minimum wage hike for agricultural activities will occur in two steps, with the first commencing in April of the upcoming year and the second in April 2026.
Additionally, the government announced a comprehensive review of the income tax system, with special measures to be implemented in January of the following year, aimed at improving income levels for the middle class.
In a press briefing, Head of Government Aziz Akhannouch highlighted the government's commitment to addressing these issues. He acknowledged the positive cooperation from trade unions and praised the spirit of dialogue that has supported these landmark reforms.
As Morocco navigates the complexities of the modern economic landscape, these measures demonstrate the government's commitment to fostering a more equitable and prosperous society. With wage increases, tax relief, and minimum wage hikes, the nation is taking significant steps toward empowering its workforce and ensuring the financial security of its people.