Rabat – The government is set to present a preliminary framework for pension reform in January, Minister of Economy and Finance Nadia Fettah announced during a parliamentary session on Monday.
The initiative aims to address the long-standing challenges in Morocco’s pension system through structural changes.
Outlining the plan, Fettah mentioned that the reform will center on the creation of two distinct pension hubs—one for public employees and another for private-sector workers.
The proposal also seeks to establish a phased transition to a new system, safeguarding current rights and accrued benefits while introducing governance enhancements.
Fettah noted that recent social dialogue negotiations, which led to wage increases, have temporarily eased pressure on pension funds by extending their solvency by two to three years. To further stabilize the system, the government has allocated MAD 2 billion to the Moroccan Pension Fund (CMR).
Fettah described pension reform as one of Morocco’s most complex and urgent challenges, requiring careful and collaborative efforts to address. She reaffirmed the government’s commitment to working with all stakeholders to develop sustainable solutions that improve conditions for current pensioners while ensuring long-term stability for future retirees.
The reforms, she noted, aim to balance immediate needs with fairness across sectors, paving the way for an equitable and resilient system.
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The issue of pension reform is far from new, having been a subject of extensive debate and discussion over the years. Despite numerous attempts to address it, the topic remains unresolved, reflecting its inherent complexity and the far-reaching implications of any proposed changes.
Successive governments have revisited the matter, but the challenges of balancing sustainability with fairness have kept it an ongoing and often contentious point of policy.
Earlier this month, the Moroccan government approved an amendment to the 2025 Finance Bill, introducing a phased income tax exemption for basic retirement pensions. Budget Minister Delegate Fouzi Lekjaa explained during a parliamentary session that the reform aims to ease retirees’ financial burden while promoting social equity.
Starting in January 2025, retirees under the basic pension regime will receive a 50% tax deduction, transitioning to full exemption by 2026. However, the measure applies only to basic pensions and regulated lifetime annuities, with complementary pensions remaining taxable to preserve state revenues.
