Salary Increases and Tax Cuts: New Gains for Employees in the Public and Private Sectors
Express TV: Mustafa Filali
This July marks the distribution of a new round of salary increases affecting around one million public sector employees, as part of the implementation of the second phase of the social agreement signed during the April 2024 round between the government and social partners. The increase is estimated at a net value of 500 dirhams, which will be added to the first installment paid in July 2024, in line with Prime Minister Aziz Akhannouch’s government commitment to gradually implement the provisions of the social agreement.
In this context, salaries have also significantly increased in the private sector following a 15% rise in the legal minimum wage (SMIG), which has increased from 2,638.05 dirhams to 3,046.77 dirhams monthly, reflecting a rise of about 408 dirhams. Additionally, a 20% increase was applied to the minimum wage in the agricultural sector (SMAG), bringing it to 2,255.27 dirhams from 1,859.79 dirhams, with an increase estimated at 395 dirhams monthly.
These increases were accompanied by a reduction in income tax (IR), contributing to an increase in the average net salary of public employees from 8,237 dirhams to approximately 10,100 dirhams. The minimum salary for civil service has also been raised from 3,000 dirhams to 4,500 dirhams, representing a 50% increase.
These measures represent a concrete translation of the government’s commitments within the framework of social dialogue, which emphasized improving citizens’ purchasing power through salary increases and reducing the tax burden on workers, particularly those with moderate and low incomes, who benefit from tax reductions of up to 400 dirhams monthly.
