Madar (Rabat) - Morocco's government plans to exempt employees earning less than MAD 10,000 a month from income tax from January 1, 2027, and to raise the minimum pension to MAD 1,700 a month, under the 2027 Finance Bill presented to Parliament by Economy and Finance Minister Fouzi Lekjaa on Friday, October 23, 2026, Moroccan news site Hespress reported.
The reform raises the annual net income threshold exempt from tax from MAD 40,000 to MAD 60,000 and cuts the number of taxable brackets from five to three, with rates of 10%, 20% and 30%, while the top rate falls from 37% to 30%. Lekjaa said 87% of employees would be exempt and that most of those affected would gain about MAD 500 a month, at an estimated cost of MAD 5.5 billion in 2027.
The minimum pension will rise from about MAD 1,000 to MAD 1,700 as a first step toward MAD 3,000 by the end of the government's term, benefiting about 500,000 retirees, including more than 150,000 widows. The pension rate granted to widows will double from 50% to 100%, covering 431,000 widows. The two pension measures will cost a combined MAD 10 billion.
Minimum monthly direct social assistance will rise from MAD 500 to MAD 600, at a cost of MAD 3 billion, with further gradual increases planned toward MAD 1,000. The state will cover monthly electricity bills of MAD 100 or less for about 6 million customers, or 60% of consumers, at a cost of MAD 2.8 billion. MAD 1 billion is earmarked to make essential goods more affordable and MAD 6 billion for youth employment, training and business support.
The health budget rises by MAD 3 billion to MAD 45.4 billion, with 8,000 new positions, and funding for education, higher education and vocational training by MAD 5.3 billion to MAD 121.3 billion, with 17,874 positions. Housing receives MAD 10.4 billion in investment funding.
According to a second Hespress report, Finance Bill 60.26, the first budget of Prime Minister Fatima Ezzahra El Mansouri's government, also sets a 40% corporate tax rate for hydrocarbon importers and distributors with annual net profits of MAD 100 million, VAT exemptions on imports of live cattle, sheep, goats and camels and specified meat products, 33,954 public-sector positions, and tax exemptions for FIFA and its partners involved in the 2030 World Cup.
