New Regulations on Employee Compensation and Benefits in Morocco
New provisions now regulate the remuneration elements and expenses paid by employers to their employees, whether they involve reimbursements for business expenses or compensations related to contract termination. When these amounts are not included in the social security contribution base, they now have a precise legal framework.
A decision issued by the Minister of Economy and Finance, published in the Official Bulletin No. 7443 on September 29, 2025, lists the allowances and benefits exempt from social security contribution calculations, while establishing the applicable conditions and exemption limits.
A Favorable System for Employees and Employers
Adopted in application of Decree No. 2.25.266 of April 24, 2025, concerning the social security system, this measure aims to harmonize the treatment of allowances and benefits paid to employees. It seeks to reduce disparities between companies and enhance the transparency of declarations made to the CNSS.
The regulation pursues a dual objective: to provide employers with a clear legal framework and to ensure full recognition of employees’ rights. By setting precise conditions and exemption limits, it ends the ambiguities and discrepancies in interpretation that have been noted previously.
The text categorizes several forms of remuneration that can be partially or fully excluded from the social security contribution base.
Travel Allowances and Expenses
Subject to certain conditions, the following reimbursements for expenses incurred during professional travel are exempt:
Travel or Assignment Allowance: 100% exempt from base salary, limited to 5,000 dirhams per month, for journeys exceeding 50 km. It can be a fixed rate when travel is regular (as in the case of sales representatives or agents) or justified by receipts (hotel, transport, meals).
Kilometric Allowance: for the use of a personal vehicle, the exemption is set at 3 dirhams per kilometer. The employer must provide a mission order specifying the journey, located within a 50-kilometer radius of the workplace.
Home-to-Work Transport Allowance: exempt up to 500 dirhams per month in urban areas and 750 dirhams outside urban areas, provided the company does not already provide transportation.
Mobility Allowances and Function-Related Bonuses
Representation or regular travel bonuses benefit from an exemption up to 10% of the base salary. Compensation for professional relocation is also exempt, calculated based on the distance between the old and new work locations, at a rate of 10 dirhams per kilometer within the country.
Termination Allowances
Termination indemnities, whether for dismissal, voluntary departure, or retirement, are exempt within the following limits:
Up to 1 million dirhams for approved or judicial dismissal indemnities.
Up to 2,080 times the hourly SMIG for retirements or voluntary departures in non-agricultural sectors, and 2,600 times in the agricultural sector.
Benefits in Kind and Social Bonuses
Social benefits linked to events such as marriage, childbirth, death, education, or religious holidays (like Eid) are exempt up to 5,000 dirhams per year per employee. Meals and meal vouchers benefit from similar treatment, with an exemption up to double the hourly SMIG per working day. Ramadan meals or meal allowances are also excluded from contributions, under certain conditions.
Exceptional Aid and Social Benefits
Medical assistance, allowances related to a health emergency, and solidarity bonuses are partially exempt, limited to 50% of the average net salary of the two months preceding the crisis.
Interns and Apprentices
Professional integration internship allowances (Law 1.93.16) are exempt when:
The duration of the internship does not exceed 24 months;
The monthly amount ranges between 1,600 and 6,000 dirhams;
A compliant contract is registered with the CNSS.
Training allowances are also exempt, limited to a duration of three years.
Other Cases of Exemption
The text also provides for the partial or total exemption of the following elements:
Cash bonuses for employees handling funds;
Risk or contamination allowances;
Benefits related to the use of a work-related telephone if the line is in the company’s name;
Tips paid to hotel and restaurant staff, subject to the declaration of a minimum salary.
A Highly Anticipated Measure
This long-awaited regulatory clarification provides legal security to companies subjected to CNSS controls. By precisely framing the limits and justifications, the Ministry of Finance aims to prevent disputes, strengthen compliance, and support employers’ competitiveness while maintaining social protection for employees.
Employers Required to Adapt
This decision is part of a broader reform aimed at harmonizing the rules for calculating social contributions and clarifying the distinction between professional allowances and benefits akin to income. It represents a significant step towards modernizing Morocco’s social framework.
The measure took effect upon its publication in the Official Bulletin, and employers are now called to adjust their remuneration policies and payroll practices to align with the new provisions while retaining the necessary justifications in case of control.
