Historic Gains for Retirees and Widows... Pension and Benefit Increases, and Income Tax Cuts!

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Fawzi Lakja, Minister of Economy and Finance, announced a package of exceptional social measures that will benefit approximately 500,000 retirees while presenting the 2027 Finance Bill to Parliament. These measures include raising the minimum pension from 1,000 to 1,700 dirhams per month starting in January 2027, as a first step toward gradually reaching 3,000 dirhams, in addition to a 5.5 billion dirham adjustment to the income tax system to ease the tax burden; whereby net wages below 10,000 dirhams per month will be exempt from up to 87% of the tax, with monthly savings gradually increasing through 2031.

As part of efforts to protect purchasing power and restructure the economy, the government has allocated 1 billion dirhams to reform distribution channels for basic commodities and reduce intermediary costs by modernizing wholesale markets and establishing regional consolidation and marketing companies. The minister also announced that the state will cover the full cost of electricity bills not exceeding 100 dirhams per month, benefiting approximately 6 million customers (60% of subscribers) at a cost of 2.8 billion dirhams, in addition to allocating more than 10 billion dirhams to support pension system reforms and modernize the meat and fish supply chains.