New Rules on Compensation and Benefits for Employees in Morocco
New regulations now govern the remuneration elements and allowances paid by employers to their employees, whether related to professional expense reimbursements or severance compensations. When these amounts are not included in the base for social contributions, they now enjoy a precise legal framework.
A decision from the Minister of Economy and Finance, published in the Official Bulletin No. 7443 on September 29, 2025, outlines the allowances and benefits excluded from the calculation of social security contributions while setting the applicable conditions and exemption limits.
An Advantageous Framework 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 to the CNSS (National Social Security Fund).
The decree pursues a dual objective: to provide employers with a clear legal framework and to guarantee employees full recognition of their rights. By establishing precise conditions and exemption ceilings, it eliminates previous ambiguities and discrepancies in interpretation.
The text categorizes several elements of remuneration that can be partially or fully excluded from the base for social contributions.
Travel Allowances and Expenses
Under certain conditions, reimbursements for expenses incurred during professional travel are exempt:
Travel or mission allowance: 100% exempt from the base salary, up to 5,000 dirhams per month, for trips exceeding 50 km. It can be provided as a flat rate for regular travel (such as for representatives or sales agents) or justified by invoices (hotel, transport, meals).
Mileage 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 route, 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 centers, provided the company does not already offer a means of transport.
Mobility Allowances and Function-Related Bonuses
Representation or regular travel allowances benefit from an exemption limited to 10% of the base salary. Compensation for professional relocation is also exempt, calculated according to the distance between the old and new work location, at a rate of 10 dirhams per kilometer within the country.
Contract Termination Allowances
Termination allowances, voluntary departure, or retirement are exempt within the following limits:
Up to 1 million dirhams for approved or judicial termination allowances.
Up to 2,080 times the hourly minimum wage for retirements or voluntary departures in non-agricultural sectors, and 2,600 times in the agricultural sector.
In-Kind Benefits and Social Bonuses
Social benefits related to events such as marriage, childbirth, death, schooling, or religious holidays (such as Eid) are exempt up to 5,000 dirhams per year for each employee. Meals and meal vouchers benefit from similar treatment, with an exemption limited to twice the hourly minimum wage per working day. Ramadan meals or food allowances are also excluded from the base, subject to conditions.
Exceptional Assistance and Social Benefits
Medical assistance, allowances related to a health emergency, or solidarity bonuses are partially exempt, limited to 50% of the average net salary from the two months preceding the crisis.
Interns and Apprentices
Professional integration internship allowances (Law 1.93.16) are exempt when:
The internship lasts no longer than 24 months;
The monthly amount ranges from 1,600 to 6,000 dirhams;
A compliant contract is filed with the CNSS.
Professional apprenticeship allowances are also exempt, limited to a duration of three years.
Other Exemption Cases
The text also provides for partial or total exemptions for the following elements:
Cash bonuses for employees handling funds;
Risk or spoilage allowances;
Benefits related to the use of a professional phone if the line is registered in the company’s name;
Tips paid to hotel and restaurant employees, provided a minimum salary is declared.
A Much-Awaited Measure
This long-anticipated regulatory clarification brings legal security to companies subject to CNSS controls. By precisely framing the ceilings and justifications, the Ministry of Finance aims to prevent disputes, strengthen compliance, and support employers’ competitiveness while maintaining employees’ social protection.
Employers Called 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 considered income. It marks an important step in the modernization of Morocco’s social framework.
The measure came into effect upon its publication in the Official Bulletin, and employers are now required to adjust their remuneration policies and payroll practices to align with the new provisions while keeping the necessary documentation in case of an audit.
