Morocco to Raise Tax-Free Income Threshold, Boosting Salaries in 2025

Moroccan salaries will increase as of January 2025. The government has indeed decided to implement the agreement it reached in April with the unions, more specifically tax relief. This includes a major revision of the income tax (IR). It is a question of raising the 1st bracket of the scale relating to the tax-exempt net income from 30,000 to 40,000 dirhams, i.e. an exemption of incomes below 6,000 DH/month.

The draft finance law (PLF-2025) provides for the revision of the other brackets of the scale "in order to widen them to reduce the rates applied to middle-class incomes, which will be lowered by about 50% of the current rate," reports Challenge, adding that the marginal rate of this scale will drop from 38% to 37%. Another tax measure: to increase the annual amount of the IR reduction for family expenses, from 360 DH to 500 DH per dependent person.

According to a document shared by union sources, there is planned a tax relief of 460 dirhams per month for salaries between 6,001 and 8,000 dirhams, 570 dirhams per month for salaries between 8,001 and 10,200 dirhams, 780 dirhams per month for salaries between 10,201 and 13,000 dirhams and finally a tax relief of 980 dirhams per month for salaries above 13,001 dirhams.