Moroccan salaries could see another improvement starting January 2027, without an increase in the gross amounts paid by employers. At the parliamentary rentrée and the presentation of the 2027 finance bill, Fouzi Lekjaa unveiled a reform of the income tax aimed at further reducing tax burdens on salaries.
The declared ambition is significant: to exempt 87% of employees from income tax and allow a large portion of concerned taxpayers to keep several hundred dirhams extra each month.
This new phase continues the tax reform initiated in January 2025 but aims to extend significantly further by 2031.
What Fouzi Lekjaa announced before Parliament
On October 23, 2026, during the presentation of the 2027 finance bill, Fouzi Lekjaa detailed the main directions of the new tax reform.
The Minister of Economy and Finance announced several major changes:
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The annual threshold for net taxable income exempt from income tax would be raised from 40,000 to 60,000 DH starting January 2027.
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The tax scale would be gradually simplified to retain only three taxable brackets.
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The final rates would be set at 10%, 20%, and 30%.
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The highest marginal rate would thus be lowered from 37% to 30% by 2031.
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The scheme is estimated to have a fiscal cost of 5.5 billion DH for the year 2027.
The government wishes to spread this reform over five years, from 2027 to 2031, rather than applying all the new rates immediately.
This distinction is important: the benefits expected in 2027 do not yet correspond to those of the final scale set for 2031.
Why will net salaries increase?
Currently, income tax is generally withheld directly by the employer before salary payment.
For example, when an employee earns 10,000 DH gross, several deductions are applied: social security contributions, health insurance, possibly supplementary pension, then income tax.
The final amount received is therefore less than the gross salary.
By reducing the income tax, the government allows the employee to keep a larger portion of their salary.
This is not an increase granted by the company, but a reduction in the amounts collected by the state.
Simulations: How much might employees gain starting in 2027?
To measure the effects of the reform, let's take three examples of gross monthly salaries.
The simulations below are based on calculations published from the reform project, for a single employee without dependents. They include assumptions for social contributions and professional deductions used in these calculations.
| Gross monthly salary | Net 2026 | Estimated net 2027 | Monthly gain |
|---|---|---|---|
| 10,000 DH | 8,457 DH | 8,806 DH | +349 DH |
| 15,000 DH | 11,730 DH | 12,230 DH | +500 DH |
| 20,000 DH | 14,752 DH | 15,252 DH | +500 DH |
These simulations illustrate an immediate benefit for taxable employees, even when the employer maintains the same gross salary.
For an employee earning 15,000 DH gross, the gain of 500 DH per month would represent an additional 6,000 DH over a full year.
However, it should be noted that these amounts are indicative: the actual net salary depends on contributions, benefits, deductions, and individual tax situations.
The exemption threshold raised to 60,000 DH: what this means
One of the main new features announced is the increase of the exemption threshold to 60,000 DH of annual net taxable income, or 5,000 DH per month.
This figure should not be confused with the gross salary or even the final amount deposited into the bank account.
To determine taxable income, it is necessary to consider social contributions and the allowable tax deductions.
The reform also provides for a flat-rate deduction for professional expenses raised to 45%, limited to 35,000 DH per year.
This change helps reduce the taxable base for certain employees, regardless of changes to the tax brackets.
It is this combination that explains why the effects of the reform can be more significant than simply reading the 60,000 DH threshold.
87% of employees exempted: a major transformation announced
According to Fouzi Lekjaa's statements, the scheme aims to exempt 87% of employees from income tax.
Only 13% of employees would thus remain liable for this tax, according to government projections.
This announcement is particularly significant for low and middle incomes.
However, it does not mean that all employees will benefit from an additional 500 DH per month.
An employee already fully exempt from income tax cannot gain from a further reduction in this tax. Similarly, for certain incomes, the tax reduction will be less than 500 DH.
The actual effect therefore depends on the amount of tax paid before the reform and the individual's situation.
A new improvement scheduled until 2031
The reform should not stop in January 2027.
The government plans to gradually adjust the scale over several budgetary years.
| Year | Projected maximum marginal rate |
|---|---|
| 2026 | 37% |
| 2027 | 37% |
| 2028 | 37% |
| 2029 | 35% |
| 2030 | 30% |
| 2031 | 30% |
However, the maximum rate is not sufficient to measure tax changes: the limits of the brackets will also be modified.
From 2031 onwards, the proposed final scale particularly includes an exemption up to 60,000 DH of annual net taxable income, followed by progressive taxation at 10%, 20%, and 30%.
The 30% bracket would only begin above 500,000 DH of annual net taxable income.
This change could lead to much greater tax savings for employees with relatively high incomes.
Up to 3,079 DH more per month according to projected figures
During his parliamentary explanations, Fouzi Lekjaa also provided two examples of the expected effects by 2031.
According to the numbers presented by the minister, the monthly gain could reach:
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1,186 DHfor an employee earning a benchmark monthly salary of 11,800 DH.
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3,079 DHfor an employee earning a benchmark monthly salary of 18,700 DH.
These amounts are the projections announced for 2031 and not applicable increases starting in January 2027.
They illustrate the potential scale of the reform once all the new parameters come into effect.
Individual gains will still need to be recalculated based on the tax rules actually adopted and the makeup of the compensation packages.
What impact on household purchasing power?
For a Moroccan household, a few hundred dirhams more each month can represent a significant difference.
A gain of 500 DH per month equates to 6,000 DH annually. For a household with two employees each benefiting from a similar saving, the theoretical advantage could reach 12,000 DH annually.
These sums can help finance essential expenses: food, transportation, education, housing, or savings.
However, the improvement in purchasing power will also depend on price trends.
If essential expenses continue to rise, part of the fiscal gains may be offset by inflation and daily costs.
The economic impact of the measure cannot therefore be evaluated only through the nominal increase in net salary.
A reduction in income tax without an increase in employer expenses
Another notable aspect of this reform is that it does not necessarily require companies to increase their salary expenses.
With the same gross pay, the employee receives more while the employer retains the same salary cost, provided that other deductions remain unchanged.
This mechanism can immediately improve disposable income without directly burdening companies' wage bills.
The state bears the cost of the measure in the form of tax revenues it forgoes.
For 2027, this effort is estimated by the government at 5.5 billion DH.
From the 2025 reform to the 2027 plan: a new phase
The first major recent reform of income tax took effect on January 1, 2025.
It notably raised the exemption threshold from 30,000 to 40,000 DH annually and lowered the maximum marginal rate from 38% to 37%.
This initial step already allowed many employees to see their net salary increase.
The new reform announced for 2027 aims to continue this relief, with an even higher exemption threshold and a gradual overhaul of the brackets.
It is therefore important to distinguish between the gains already achieved in 2025 and the additional savings that could occur starting in 2027.
What remains to be confirmed
As of November 7, 2026, the parameters of the new reform appear in the 2027 finance bill.
Their implementation remains conditional on the adoption of the text and the publication of the final provisions.
Employees will also have to wait for the effective application of the new rates in payroll systems to know their exact gain.
The available simulations, however, help illustrate the potential effects of the announced reform.
A reform likely to permanently change pay slips
With this new revision of income tax, Morocco is committing to a gradual reduction of taxation applied to wages.
The measure differs from a traditional salary increase: its benefit comes directly from the reduction of tax paid, not from a rise in gross salary.
The examples presented show gains reaching 500 DH per month starting in 2027 for certain categories of employees, then more as the scale evolves until 2031.
The challenge will now be to transform these announcements into actual gains visible on pay slips.
For Moroccan households, the essential question remains about purchasing power: not only how much they will receive additionally, but especially what these extra dirhams will allow them to actually purchase.
Visualizing the projected gains starting in 2027
