Good news for 87% of employees and workers.. Fawzi Lakjaa announces that wages less than 10,000 dirhams will be exempt from income tax starting January 1, 2027 (Video Reels)

Mr.Fawzi LakjaaMinister of Economy, Finance and Public Efficiency, good news for millions of employees and workers in the public and private sectors, by officially announcing the exemption of all net monthly wages that are less than10,000 dirhamsFrom the income tax (IR) starting from January 1, 2027.

Details of the decision and official numbers from the Parliament platform

Lakjaa revealed, during the presentation of the draft Finance Law 2027 before Parliament, that this historic tax reform includes raising the ceiling of the first exempted segment of net income from 40,000 to 60,000 dirhams annually, and reducing the number of segments subject to tax from five to three segments, so that the percentage of employees who are completely and comprehensively exempt from income tax increases to87%While only 13% remain subject to tax.

This measure, whose financial cost amounts to 5.5 billion dirhams in its first year, will translate into a net monthly gain of approximately500 dirhams per monthfor the majority of concerned employees starting from January 2027, provided that the reform continues gradually until the monthly earnings reach1.186 dirhamsFor the employee who earns 11,800 dirhams, and3,079 dirhams per monthFor wages amounting to 18,700 dirhams by the year 2031.