Morocco reshapes labor landscape with bold wage and pension reforms

Morocco is pushing forward with a broad package of social and economic reforms designed to raise living standards and promote a more balanced relationship between workers, employers, and the state. These changes affect key areas such as minimum wage levels, pension eligibility, tax policy, and labor rights—including the regulation of strikes.

In the private sector, wages have seen a steady climb over the past few years. Between 2021 and 2025, the guaranteed national minimum wage (SMIG) rose by 15%, increasing from 2,638.05 dirhams to 3,046.77 dirhams. Another 5% hike is scheduled for January 2026, bringing the SMIG to approximately 3,191.85 dirhams. Over the full period, this represents a 20% increase in base pay for private-sector workers.

Agricultural workers have also benefited from a significant pay bump. The guaranteed agricultural minimum wage (SMAG) increased from 1,859.79 dirhams in 2021 to 2,255.27 dirhams in 2025—a 20% gain. A further 5% increase is set for April 2026, raising the SMAG to 2,362.64 dirhams. In a long-term move toward equality between sectors, the government plans to harmonize the minimum wage in agriculture and other industries by 2028.

One of the most transformative reforms concerns the pension system. The required number of workdays to qualify for a retirement pension has been slashed from 3,240 to just 1,320. Workers who have accumulated between 1,320 and 3,240 days of contributions will now receive a monthly pension ranging from 600 to 1,000 dirhams, depending on their contribution history. Those with fewer than 1,320 days will be entitled to a full refund of both their own contributions and those made by their employers.

The tax system is also undergoing important changes. A new income tax structure, in effect since January 2025, has resulted in an average monthly boost of 400 dirhams in net pay for middle-income families. Additionally, the annual tax deduction granted for each dependent has been raised from 360 to 500 dirhams, further easing the financial burden on working families.

Finally, after years of anticipation, the country has enacted a legal framework for strikes. In February 2025, the House of Councillors passed Organic Law No. 97.15, establishing clear guidelines for how and when workers can legally strike. The legislation aligns with international labor standards, laying out mandatory notice periods and identifying which categories of workers are eligible to take collective action.

Together, these reforms mark a critical step toward a more inclusive and equitable labor system in Morocco, reinforcing the government’s intention to foster stronger social dialogue and respond to the economic needs of its population.