PAY & TAXATION OF SALARIES:

INTRODUCTION :

The remuneration includes the base salary and, possibly, additional benefits (thirteenth month,
end-of-year bonuses, attendance bonuses, etc.)

Various other sums can, of course, be paid during the execution of the employment contract.
(increased pay for overtime, reimbursement of professional expenses) or on occasion
of his dismissal (severance pay). However, not all of them have the nature of salary in this
in that they do not necessarily aim to compensate for the work performed.

This distinction is important because, among the various amounts that the employee can receive,
Only those with the character of salary are taken into account to check if the employer complies.
well the legislation relating to the minimum wage and, where applicable, the minima provided for by the collective agreement.

In what follows, we will know:

How to calculate gross salary?

2. How to determine the basis for contributions to the CNSS?

3. How to determine the basis for contributions of the CIMR, mutuals, health insurance...

4. How to calculate income tax on salary?

5. How to determine the net amount to be paid?

6. How to calculate personnel costs?

7. How to calculate social charges?

9. How to fill out the CNSS declarations

10. ANAPEC and TAHFIZ contract.

11. Examples of real pay slips.

11. Applications.

1-Definition of salary:
The employee receives, in return for the work they provide, a remuneration called 'salary'.

The labor code has avoided giving any definition of salary; it has focused more on
principle of determining its amount.
Indeed, Article 345 of the code states that the salary is freely determined by direct agreement between the
parties or by collective labor agreement, but its amount is most often determined by
the employer based on the qualification recognized for the employee at hiring.

Mandatory mention of the payslip:

To be legal, a payslip must include the following mandatory mentions:

- Employer identification: Name, Address, Social Security Number, Registration Number

business and tax identification.
- Identification du salarié :Matricule, Nom + Prénom, Fonction occupée, Date d’embauche,
Base salary, Social security number.
- Duration of work performed: number of days worked, number of hours worked (with
a distinction between regular hours and overtime) and paid leave
- Constituent elements of gross remuneration: base salaries (hourly/monthly),
the mandatory elements (for example: seniority bonus, paid leave) and the elements
salary accessories (example: meal allowance, transport allowance);
- The details of social contributions: amount of social deductions (CNSS, AMO, Retirement,
supplementary insurance,)
- The details of tax deductions (Income tax).
- The net amount to be paid to the employee and its method of payment.

Article 375 of the Labor Code specifies that the non-issuance of a detailed pay slip as well as
Having a pay slip will cost the company a fine ranging from 300 to 500 DH.

This fine is applied as many times as there are employees, but without exceeding the total of
fines do not exceed the amount of 20,000 DH.

3-Base Salary
Several fastening modes are possible:

- Based on the duration of actual work (this is the most common mode);
- On the yield, based on known and previously defined standards (piecework,
piecework...) ;
- Under a fixed package. A fixed package agreement between the employee (most often a manager) and the employer.
must therefore be concluded in writing. It must also be precise and quantified.

The most common mode:

- Base salary = number of normal hours X normal hourly rate.

Example: Mr. HATIMI works in a company where salaries are paid daily.
the normal hourly rate is 9.50 Dh. Mr. HATIMI's basic salary for a working day of 8 hours is
work is 8 h X 9.50 Dh = 76 Dh

4-Gross Salary
The gross salary includes all agreed amounts and benefits granted by
the employer:
Base salary, benefits in kind and cash, bonuses, rewards, tips, as well as
increases provided by law or collective agreements (increase for hours
additional, night work, Sunday work, dirty or strenuous work...
4.1- Overtime:
Employees can be employed beyond the normal working hours under the conditions that
will be set by regulatory means.

Three situations are provided for by the labor code:

- When there are exceptional increases in work.

- When employees need to carry out preparatory or complementary work
essential to the overall activity of the company and that cannot be executed in the
normal working limit.
- When urgent work must necessarily be carried out immediately to
prevent imminent dangers, organize rescue measures to repair
accidents that occurred to installations or buildings, or to prevent the deterioration of
certain subjects.

Overtime results in a salary increase of 25% if it is performed between 6 AM and 9 PM and to

50% if they are completed between 9 PM and 6 AM.

This increase is raised respectively to 50% and 100% if the overtime hours are
performed on the weekly day of rest or public holidays, even if a compensatory rest is
granted to the employee.

- Additional hourly rate = Normal hourly rate X (1 + Surcharge Rate)

Example: If the markup rate is 25%, additional hourly rate = normal hourly rate X 1.25.

Application :

M. FILLALI works in a company where salaries are paid at the end of each week. The rate
The normal rate is 9 Dh.

Mr. FILLALI's salary for a 52-hour work week, the overtime has
was carried out on a working day from 11 PM to 3 AM) is:

Base salary = 48h X 9 Dh = 432 Dh

Overtime = 4h X (9 Dh X 1.5) = 54 Dh

486 Dh

4.2- Benefits in kind:

The benefits in kind consist of the provision to the employee of goods or services produced.
by the employer or by making available to the employee, either free of charge or for a fee
retention lower than the actual value of goods belonging to the employer.

Example: Company car, housing, mobile phone, a supplementary retirement plan...

This is aimed at motivating employees and providing them with a better quality of life at work.
improve their performance.

Benefits in kind are considered a component of salary and must necessarily be included in the
pay slip

The assessment of benefits in kind is done on a flat-rate basis.

Attention: One must not confuse benefits in kind with professional expenses.
in-kind benefits are a coverage of a part of the personal expenses of employees, while
Professional expenses are costs inherent to or related to the employee's job.

Examples:

- When an employer provides an employee with a vehicle that they can use for purposes
Both professional and personal, private use constitutes a benefit in kind.
On the other hand, when an employee is required to use their personal vehicle for purposes
professional expenses, the reimbursement made by the employer corresponds to costs
professionals.

- The total or partial coverage of meal expenses by the employer is a benefit in

nature. But the reimbursement of meal expenses for an employee on a business trip
professional, present on a construction site or required to have meals at their place of work
work corresponds to professional expenses.

Example of calculating the value of a benefit in kind:

- The calculation of the value of a housing benefit is done this way:

The value of the housing is equal to the actual rental value of the housing, increased by the
other related advantages such as water, lighting, heating, telephone,
as well as domestic service and guarding.

In the absence of a real rental value, it is estimated based on the determined value.
for the assessment of the increased urban tax from the estimation of other benefits.

Example of calculating the value of a benefit in kind:

The provision of a car on a permanent basis without the needs of the work justifying it.
of service to an employee of this entity, other than the general manager or the director
commercial, should be considered as a benefit in kind.

This benefit is assessed based on the value of the expenses related to the insurance fees,
vignette, fuel, vehicle depreciation, etc.

The same applies to expenses incurred for vehicles rented by the company for the
same end.
4.3- The advantages in Money:
These are allowances for personal expenses for the employee fully or partially covered.
part by the employer.

- The rent for personal accommodation, generally paid in advance by the employee and reimbursed by
the employer;
- Medical and hospitalization expenses;
- Particular travel and accommodation expenses;
- The employee's personal taxes.
- Personal premiums for life, health, maternity, disability, death, and old age insurance
employer contributions;
- Contributions to school fees for the children of the staff;
- The purchase of toys for the occasion of the Achoura festival intended for the children of the staff.

4.4- Bonuses and rewards:

Bonuses and rewards are sums of money given by the employer to their employees.
The allocation of these amounts may be provided for by the collective agreement, a company agreement, the
employment contract or a usage.

The bonuses are very varied; they can be related to:

- In the presence of the employee in the company (Example attendance bonus, presence bonus)
- Loyalty in the company (Example of seniority bonus);
- To the employee's production (Example: performance bonus, objective bonus, bonus of
yield) ;
- On the working conditions (Example risk bonus, hardship bonus);
- To the personal situation of the employee (Example marriage bonus, birth bonus).
- Also, let's mention the thirteenth month bonuses, end-of-year bonuses, etc.

Seniority bonus (MANDATORY):

Seniority bonus: bonus added to the salary of an employee having the conditions of seniority.
requirements :

- The bonus is: 5% of the base salary (plus overtime) if service is between 2 and
5 years.
- 10% service between 5 and 12 years.
- 15% if service between 12 and 20 years.
- 20% if the service is over 20 years.

4.5 - Indemnities (amounts that do not have the character of salary):

The allowances are considered to be supplements to the salary (they do not have the
the character of a salary). They generally come to cover the expenses incurred by the employee in
the framework for the execution of his functions related to his position.
The compensation is money awarded to an employee in compensation for a damage or a
damages, in compensation for certain expenses.

Example :

- Kilometric allowance for personal car use

- Compensation for the use of personal vehicle
- Relocation allowance
- Clothing allowance
- Shoe allowance for dirty work
- Compensation for arduous or dangerous work,
- Food allowance,
- Meal or food allowance,
- Travel allowance,
- Indemnité de séjour, Indemnité de représentation……

Representation allowance: Its amount should not exceed 10% of the salary of
The beneficiary of this allowance must necessarily perform one of the functions.
suivantes :Président Directeur Général, Directeur Général, Directeur d’undépartement
Commercial Director, Financial Director, Administrative Director, Director
Technique, Human Resources Director, Branch Director) and Agent
commercial.

Mileage Allowance: Paid to employees who use their personal vehicles

in the exercise of their professional duties. This allowance is not subject to
deduction when it is justified by the quality of the beneficiary (commercial agent,
medical delegate etc.) or by the written order issued to the employee, when it concerns a mission
particular not normally and habitually falling within the obligations
professional of the concerned person, provided that its amount does not exceed the limits
fixed by the following scale:

Tax Power of the Vehicle Kilometric Allowance (MAD)

4 CV 1.90
5 CV 2.20
6 CV 2.40
7 CV 2.60
8 CV 2.95
9 CV 3.55
10 CV and more 5.20

4.5- Family Allowances :

These are benefits provided by the national social security fund (CNSS) to employees who have
dependent children

The amount of family allowances is 300 Dh per month for each of the first 3 children and
36 Dh per month for each of the 3 following ones. (With a maximum of 1008 Dh.)
Example: The amount of family allowances received by an employee, married and having 7 children is:
(300 Dh X 3) + (36 Dh X 3) = 1008 Dh
He will have nothing for the seventh child.

Note: Currently, family benefits are paid directly by the CNSS, they do not appear
more about the payslip

5-Social contributions of employees CNSS:

Morocco has a mandatory social security system and is a signatory to several

conventions in this sense.

- Every employer is required to register with the National Social Security Fund.
Social (CNSS), as well as the registration of its employees and apprentices at the fund.

- The contribution rates owed to the National Social Security Fund are as follows :(part
salary)

Salary part: 4.48% of the taxable gross salary (after deducting non-
accepted by the CNSS)(The salary subject to contribution is capped at 6000 Dirhams)

AMO, 2.26% of the taxable gross salary (no ceiling).

The contributions due to the CNSS are based on all the remuneration received by the
beneficiaries of the social security scheme; including allowances, bonuses, rewards, and everything
other benefits in cash or in kind, as well as any amount received directly or through
the intervention of a third party as a tip.

These remunerations constitute what is called the basis for contributions on which are
calculated the contributions.

The rates to be applied when calculating contributions are determined by law. Each of the major
categories of social benefits are characterized by a contribution rate specific to them.

CNSS services Calculation base T. Patronage Salary T. Global Rate

Services The total of 6.40% ---- 6.40%
familial real wages of
the period
(month/quarter)
Services The total of 1.05% 0.52% 1.57%
short social salaries
term plastered
(each capped)
at 6000 dirhams
 Services The total of 7.93% 3.96% 11.89%
long-term social salaries
term plastered
(each capped
at 6000 dirhams
Assurance The total of 4.11% 2.26% 6.37%
disease real wages of
mandatory the period
(month/quarter)
Tax of The total of 1.6% --- 1.6%
formation real wages of
professional. the period
(month/quarter)

- Short-term social benefits: 0.57% related to the Employment Loss Allowance distributed
as follows: the employer's contribution is 0.38% and the employee's contribution is 0.19%
- Are partially exempt from the payment of the AMO contribution the companies that do not
expecting the solidarity rate of 1.85%

The calculation base for social contributions:

- This is the taxable gross salary, calculated as follows: T.G.S. = Gross Salary - exemptions

S.B.I. x4.48% (capped at 6000 Dh/month) Max: 268.8 Dh/month or 3225.6 Dh/year
AMO = 2.26% x S.B.I. (without ceiling)

Prime Exemption ceiling and condition

Tooling allowance This bonus paid to workers who own their tools is in principle
excluded from the assessment provided that it does not correspond to expenses
related to workers who do not have tools and do not have to use them.
The amount of this bonus not subject to contribution must not exceed
100 dirhams per month. The amount that exceeds this remains subject to
contribution.
Bonus of It is allocated to workers who indiscriminately carry out work
soiling particularly dirty to offset their cleaning costs.
The exempt amount must not exceed 200 dirhams per month. The part
Any amount exceeding this is subject to contribution.
Wear premium of It is allocated to workers to cope with charges of
clothes new work clothes.
The non-contributory amount (exempt) must not exceed 100 DH.
On the other hand, the unjustly called bonus is subject to contributions.
clothing allowance that is paid to certain workers while their job does not
they are neither exposed to dust nor to wear from clothing.
Basket bonus This bonus is not subject to contributions when the company that grants it
does not organize a collective cafeteria.
 However, its assignment must be dictated by the constraint in which it is.
find the worker to take a snack or a meal due to
special working conditions, such as: teamwork, shift work (3
times 8), continuous work, work on a staggered schedule, work on a distant construction site
usual workplace.
The exempt fraction of the daily amount of this bonus must, under no circumstances
cases, exceeding twice the minimum hourly wage.
Meals served in Granted, in the workplaces, to the company's staff, when the
Ramadan working conditions justify it.
The exemption is capped at 20 DH per day. However, it should be noted
this exemption is not cumulative with the meal allowance.
Voucher or check The amounts representing the costs of catering, food or
of restoration of food, granted by the employer to all staff of
or the company in the form of payment methods specifically intended for the
of food nutrition and employee food (titles, vouchers or checks of
restoration or food), are not subject to contributions and this,
the limit of :

- 10 Dirhams per employee per day.

- 20% of the salary subject to contributions, of the beneficiary.

It should be noted that this exemption is not cumulative with the allowance.
basket food
Milk allowance Granted to workers handling toxic products.
The amount of this bonus must not exceed 150 dirhams per month.
the part that exceeds this amount remains subject to contribution.
Travel allowance Granted only once to the employee. The allowed amount cannot exceed the price.
in Mecca the round-trip airfare increased by the amount of the authorized allowance
by the currency office.
Toy bonus Intended, once a year, for the children of employees and workers.
Ashura The non-contribution value of these toys must not exceed 150 Dh
per child, without exceeding, per employee, a limit of 750 Dh per
The part that exceeds this amount remains subject to contribution.
Prime purchase Granted flat-rate only once a year to all staff.
sheep The amount of this allowance not subject to contribution must not exceed
2,000 Dh per employee. The portion that exceeds this amount remains subject to
contribution
The expenses The fees related to telephone lines at home and the lines
real relatives mobile phones of one or more executives whose acquisition in
at the posts the charge by the employer is justified by the quality of the beneficiary, are not
telephonic subject to a contribution of 50% of their amount.
However, these royalties are completely exempt when they are
labeled in the name of the company.
Compensation Accepted for a ceiling of 150 DH for employees using their car
of use personal for making small purchases for the company during the
vehicle working hours
staff
Indemnity of It is about the enforced relocation, in case of service necessity, by
moving the employer. The amount of this indemnity not subject to contribution must not
do not exceed that released by multiplying the kilometer rate of 10 Dh by the
number of kilometers separating the employee's original place of residence from the location
 of reassignment of the latter. The portion that exceeds this amount remains
subject to contribution.
Compensation of Granted to workers who handle funds and have a
box financial liability.
The amount not subject to contributions for this allowance must not exceed
150 Dh per month.
Dispenses or This concerns the exemption or reduction of interest relating to loans granted by
discounts the employer to the staff
interests
Allowance paid The allowance paid to a child of an employee of the company that this
to a child of a last occupies during the summer holidays (exclusively), provided that
worker of this allowance does not exceed twice the minimum wage and that it is allocated
the company for a maximum of two months during the said holidays.
Indemnity or Condition: Occasional travel.
expenses of To justify with transport tickets, expense notes for restaurants and hotels, etc.
transfer to and to be completed by mission order
justifications
Indemnity or Condition: Movement of a manager or salesperson.
fees of -Transport: see the mileage allowance scale (personal vehicle) or rate
movement public transport.
flat-rate Food expenses: 10 times the hourly minimum wage per day
Accommodation fees: 30 times the hourly minimum wage per day for a trip
exceeding 50 km.
Note: The hourly minimum wage is 13.46 Dh (2018)
The compensation of 500 Dh in the urban area
transport Place of work located more than 2 Km from the employee's home that the company does not
no personnel transport available.
Indemnity Depends on the quality of the beneficiary with the mission order.
kilometric
for use 1.9 DH per KM
car 2.95 per Km
personal
The premium of 1500 Dh per month as the exemption ceiling.
tour
Granted, in reimbursement of transportation costs incurred within the framework
from the exercise of the function, to the personnel having the quality of representative
commercial or traveling agent, called to visit, throughout the
day, the clientele, the suppliers...etc.

Travel allowance Ceiling–round trip ticket.

on leave in the country
of origin Once every 4 years and if the employment contract stipulates it, once every two years.
(foreigners)
Medical assistance Condition: once a year.

Granted in the absence of mutual insurance or group insurance. 100 Dh per child
with a maximum of 1000 per year and per employee.
Gratifications to Condition: 5000 Dh once every 4 years.
social title
Marriage, birth, circumcision, death of a close relative.
 Allocations Ceiling: Minimum wage and maximum 2 times a year.
paid to a When the company employs during the summer holidays, the child of the worker
child of the employee
Allocation of Condition: 400 Dh per child with a maximum of 1600 per employee.
back to school Once a year for the children of employees on the occasion of the back-to-school season
The compensation of Limit: maximum 10% of the base salary.
representation granted only to: CEO - DG - DA - DAF - DRH - DT - DC and directors of
departments, branches, agencies

6-Contributions of the CIMR:

The CIMR scheme, which is optional, is open to employees in the private sector.
supplementary scheme to that of the CNSS. It is accessible to any employer established in Morocco.
Membership can concern either all employees or a homogeneous category of staff.
CIMR retirement guarantees a high level of return for supplementary retirement intended
in the private sector. This income allows the employee to maintain their standard of living once they arrive at
the retirement age.

The contribution base CIMR:

It depends on the product chosen at the time of affiliation.

For CIMR Al Kamil, the contribution base consists of all elements

gross remuneration, before taxation (fixed salary, hours
supplementary, bonuses, etc.).
For CIMR Al Mounassib, contributions are made based on the part of the salary that
exceed the ceiling of the CNSS

The contribution rate: The amount of contributions depends on the contribution rate. At the time of
his membership in the CIMR, the employer opts for a contribution rate that will apply for both
parts, employer and employee.

The employer's contribution is equal to the employee's share, increased by 30%.

The CIMR AL KAMIL formula:

By opting for CIMR AL KAMIL, the employer and its employees choose together from the 12 rates.
of proposed contributions, the one that suits them best.
 - The rate that will be chosen applies to the entire salary, with no cap.
contribution is not set, to allow the employee to align the level of their future
pension of that of his income in activity.
- The amount of contributions (salary x chosen rate) is converted into points each year
CIMR.

The Appropriate Formula:

By offering the possibility to contribute on the salary bracket above the CNSS ceiling, CIMR Al
Mounassib improves the pension level and maintains the standard of living in retirement.

For its employees, particularly the executives, to have them benefit from the CIMR retirement scheme is the
the best way to motivate and retain them is by allowing them to work in peace,
no longer having any concerns about their future and that of their families.

Each of the contributions from employees, whether they come from employer or employee shares, are
translated in points.

7-INCOME TAX:

Studying the taxation of salary income requires defining this income (the composition of the base
tax), the accepted exemptions and the appropriate taxation method, according to the provisions of
law on income tax on salaries.

However, salary income encompasses a variety of incomes that we will review in order to
specify the scope of application of the salary tax.

Once this scope is delineated, it is necessary to specify the elements to be exempted and in
under what conditions are we allowed to do it?
This work allows for the determination of a taxable gross salary, from which one must subtract
deductions defined by law to have a taxable net salary.

Depending on the level of the latter, the employer will apply the appropriate tax rate and amount.
to be deducted for correctly calculating the payroll tax, which is a withholding tax to be declared.
S.N.I. installments (in Dirhams) Rate in % Amount to deduct (In Dh)
0–1,666.67 0% 0
1,666.68–2,000 13 % 216.66
2001–3.000 21% 376.66
3.001–5.000 35% 796.66
Beyond 5,000 44% 1,246.66

Example: S.N.I. = 9.391 Dh Tax before deduction = (9.391 X 44 %)–1.246.66 = 2.885.38

THE EXEMPTIONS:
The first step: we calculate the taxable gross salary as follows

Taxable gross salary = Gross salary - Exempt elements

Meal allowance (granted to employees working on sites far from their home)

Justified travel allowance

Cash allowance

Dirt allowances

Transport allowance

Representation allowance

Life insurance compensation

Meal vouchers

Social gratifications

Tour bonus

Kilometric Allowance

Milk allowance

Moving allowance

Tooling allowance

THE DEDUCTIONS:
In order to determine the taxable net salary, it is necessary to deduct from the taxable gross salary all of the
expenses incurred by the employee from their salary income:

Net taxable salary = Gross taxable salary - Deductions.

In deductions, we distinguish between:

- (-) the employee's portion of CNSS contributions

- (-) the employee's share of AMO contributions
- (-) the employee contributions to CIMR
- (-) Professional expenses 20% of the taxable gross salary minus benefits in kind
and cash) capped at 2500.00 MAD per month
- (-) The repayments of principal and interest on loans taken out for the acquisition of a
social housing and interest only for other types of housing up to
10% of the taxable net salary.

A - Professional expenses
Example:

An employee had an income in March consisting of:

- 15,000
- Various prizes: 2,000
- Monthly rental value of a housing provided to him: 5,000
- Coverage of water and electricity expenses: 1,000

The accommodation provided free of charge to the employee as well as the coverage of the
Water and electricity expenses are taxable benefits in kind but not taken into account.
for the calculation of professional expenses.

Calculation of professional expenses to be retained for deduction:

Deductible professional expenses are calculated as follows:

Gross salary = 15,000 + 2,000 + 5,000 + 1,000 = 23,000

Taxable gross salary = 23,000

Professional expenses = (23,000 - 5,000 - 1,000) x 20% = 3,400 DH

Limit of deductible professional expenses = 2,500 DH.

B- The repayment of principal and normal interest on loans:

The repayment of principal and normal interest is deductible from the taxable gross salary.
loans obtained for the acquisition of social housing for primary residence (covered area
comprise between 50 and 80 m2 and a selling price not exceeding 250,000 DH excluding VAT) and this within the limit
10% of taxable net income.
When these conditions are not met, the employee only benefits from the deduction of interest.

- Conditions:

This deduction is subject to the condition that the amounts of the reimbursements (Annuity)
be withheld and paid monthly by the employer to the approved credit institutions and
associated organisms.

Example:

An employee benefited from a loan for the purchase of his main residence acquired for a price
1,200,000 DH.
In this regard, it reimburses annual interest of approximately 42,000 MAD including tax. Its salary components...
present as follows:

Gross annual salary: 400,000

Exempt elements: 18,000

Professional expenses and social contributions = 39,000

Example (Solution):
Given the purchase price of the housing, the employee is only entitled to deduct the interest. (1200000 DH
greater than 250,000 DH excluding tax

Deductible interests and the taxable net salary are calculated as follows:

Salaire brut imposable:400.000 - 18.000 = 382000

Income deductions: 39000 DH

Calculation of the interest deduction limit:

- Limit = (382,000 - 39,000) * 10% = 34,300 DH

The interest actually paid, which amounts to 42,000 DH including tax, exceeds the limit of 10% of the salary.
taxable net (before interest).

Deductible interest = 34300 DH

Total deductions = 39000 + 34300 = 73300 DH

3080700 DH

TAX RATES (INCOME TAX):

Withholding tax is calculated based on the progressive scale applicable to income tax.

This withholding tax is often calculated according to a monthly scale, the establishment of which...
Starting from the annual scale poses no particular problem. It is indeed sufficient to bring back the
annual data (income brackets and amounts to deduct) for the month or any other period
withholding.
The monthly income, after deduction of deductible expenses, is taxed according to the monthly scale.
following:

1-We determine the amount of tax based on the following table which will allow us to
choose the rate to apply based on the amount to be deducted:
2- A second deduction is made, the amount of which is determined based on the number of
Individuals supported by the employee at 30 DH per person without family charges
that the number exceeds six people within the limit of 180 DH per month.

The people considered dependents are:

- The partner regardless of their income

- The clean children of the taxpayer or the children legally adopted by him at the double
provided that the annual income per child does not exceed the exempted threshold of the scale and
that their age does not exceed 27 years, (unless the child suffers from a permanent disability).

Mr. ESSADKI, financial manager at the company BESTMOR. His gross salary
Taxable is 9500 DH, he has 4 dependents (his wife and three children aged 7, 12, and 15 years).
4.48%

1)-Calculate the income tax on wages (CNSS 4.48% AMO 2.26%, CIMR 4.5%)
2)-Calculate the net salary to be paid

1) Calculation of income tax on wages:

- CNSS

CNSS 4.48% (ceiling of 6000 dh) 6000 * 4.48% = 268.8 DH

- I love

- 2.26% (No cap) 9500*2.26% 214.7 DH

 - CIMR

9500 * 4.5% 427.5 DH

To calculate professional expenses, one must first deduct the deductible charges.
(CNSS, AMO and CIMR).
Thus, to calculate the professional expenses, we will consider the rate of 20%, since it is an activity
normal, but not to exceed 2500 DH 9500 * 0.2 = 1900 DH we will therefore retain 1900 DH (less than
2500).

Let's calculate the taxable net salary:

SBI - DEDUCTIBLE CHARGES - PROFESSIONAL EXPENSES

-95.0

=6689.5DH

IR BRUT= (SNI*34%) -1433.33 DH

=(6689.5*0.34=2274.43 DH)-1433.33 DH=841.13 DH

IR NET: At the gross amount, we must deduct the equivalent of 120 DH (30*4 people dependent on the employee:
IR NET = IR GROSS - (30DH*4) = 841.13 - 120DH = 721.13DH

2)- Calculation of the net salary to be paid:

Net salary to be paid =

Gross Salary 9500 DH

- CNSS 268.8 DH
- I love 214.7 DH
- CIMR 427.5 DH
- IR 721.13 DH

Net salary to be paid = 7867.87 DH

After determining the net salary, it is necessary to check if we need to deduct elements that
fits within the framework:

Advances and deposits recovered: An advance granted to an employee during a

the period (generally the beginning of the month) is deducted from their salary at the end of this period.
-Salary assignments: The employee may, of their own free will, agree that part of
his salary is to be withheld by the employer to be paid directly to his creditors. He
This is then a salary assignment. Consumer credit companies require at
 employee, before granting him credit, a document by which the employee gives to his
employer the irreversible order to withhold and send them a determined monthly amount
until the credit expires.
-Oppositions: The oppositions result from a decision rendered by the court. In
effect For recovering what is owed, a creditor can sometimes initiate legal proceedings that
ends with a wage garnishment on the debtor's salary. Example: The alimony due to the
jointly, in accordance with the personal status code, is payable monthly, its
the amount is fully deducted each month from the non-seizable portion of the salary, that
this pension shall be paid by garnishment or by assignment of salary.

Note: The declaration of income tax on salaries Employers domiciled or established in

Morocco must file the salary income tax declaration no later than March 1.
the year following the year for which the salary income has been paid.

They are required to submit the declaration of salary income and related income against receipt.
to the tax inspector of their tax residence, their registered office or their main
establishment.

8-ANAPEC DEVICE:

Objectives:

- Allow job seekers to develop their practical skills within

the company and to strengthen their chances for sustainable integration.
- Allow companies to strengthen their human capital and retain it while
controlling costs;

Target population:

- Graduates of higher education;

- Awardees of vocational training;
- Bachelors.

Nature of the device:

- Internship contract of a maximum of 24 months;

- Monthly allowance granted: 1600 to 6000 DH.

Advantages:
Exemption during the internship period and up to a remuneration of 6000 DH per
month of payment:
 - Employer and employee contributions owed to the CNSS/TFP;
- From the Income Tax (IR) for candidates registered with ANAPEC for 6 months or more;

State coverage of employer and employee contributions during the internship period
under the Basic Mandatory Health Insurance (AMO);

Direct support by the State, for one year, of the employer's share of the coverage
social security and TFP due to the CNSS in case of hiring the intern on a contract of
work, during or at the end of the internship (PCS).

Benefit terms:

Selection of the candidate by the company as part of a recruitment process.

Registration of the candidate with the CNSS in accordance with the current legislation;

Instruction by the employer of the online contract on the ANAPEC [Link];

Submission by the employer to an ANAPEC agency, for validation and approval, of a

file composed of the following documents:

- 3 copies of the integration contract printed from the portal, signed and stamped by
the employer and the intern;
- A certified copy of the trainee's ID card.
- A certified copy of the intern's diploma;
- A declaration on honor from the intern stating that they have never benefited from a
integration contract (only in case of signing the first contract);
- A business identification form (only in the case of a company)
new customer
- Registration number with the CNSS of the intern if it is not provided on the contract.

Good to know:

Employers are required to:

- Declare to the CNSS the trainees benefiting from the Contracts system
of insertion on the same level as other employees without having to pay for it
contributions and related items;

- Recruit at least 60% of the people who completed the internship to continue.
benefit from the Integration Contracts scheme.

- When the amount of the compensation paid exceeds the above-mentioned cap,
the company and the intern lose the benefit of the exemption.
 9-TAHFIZ DEVICE:

Exemption of the gross monthly salary capped at 10,000 dirhams for recruitment by the E/ses
created during the period from January 1, 2015 to December 31, 2022. "Art 57-20 °" & "Art 79-V of"
CGI

The LF 2015 established a new exemption for the gross monthly salary capped at 10,000 DH.
for a period of twenty-four (24) months from the date of recruitment of the employee concerned,

By a company created during the period from January 1, 2015 to December 31, 2019 in the
limit of five (5) employees but raised to 10 employees starting from January 2018.

Application Conditions:

It is granted for a period of 24 months from the date of recruitment of the employee
and limited to 10 employees;
The salary must be paid by a company established during the period from January 1
2015 to December 31, 2019;
The employee must be recruited under a permanent employment contract (CDI);
The recruitment must be carried out within the first two years from the date of
creation of the company.

The procedure to follow in order to benefit from this program is as follows:

- Declaration of existence of the company or association with the tax services

in accordance with the legislation and regulations in force;

- Registration of the person to be recruited on the ANAPEC portal;

- Information by the employer about the protocol for benefiting from the program on the
ANAPEC portal;

- Registration of the hired employee with the CNSS, in accordance with the
applicable regulations

- Submission by the employer to an ANAPEC agency of a file per recruit.

including a benefit protocol of the TAHFIZ program accompanied by a
legalized copy of the employment contract;

- Employer's payment to the CNSS of the salary contributions of the recruits

benefiting from the program, in accordance with the legislation and regulation in
vigour;

- Opening of rights by the CNSS for the benefit of recruits;

 - Declaration by the company or association to the tax inspector, of the list of
employees benefiting from the program in accordance with the legislation and the
current regulations.

Sample Pay Slip:

Applications
Case No. 1:

The salary components of Mr. TALAL, IT technician in an industrial company, for

the months of November are as follows:

Base salary 3000 DH

Basket bonus 500DH
Transport allowance 200 DH
Mileage allowance of 300 DH (justified up to 100 DH)

Additional information:

The employee was hired on 01/07/97.

He worked the following overtime hours: On November 18th between 9 AM and 10 PM, a
Sunday between 6 PM and 7 AM and, November 26 between 5 PM and 7 PM.
The company subscribes to the CIMR (complementary retirement): 4.5% borne by the employee and 4.5%
employer's responsibility, group health insurance at a rate of 1.75% and 1% at the expense of
the company calculated on the SBI.

Work to be done:

1/ Determine the taxable net salary

2/ Determine the amount of the IGR

3/ Prepare the employee's pay slip

4/ Calculate employer contributions

Case No. 2:

A married taxpayer and father of 7 dependent children received for the month of May 2002 the
following gross remuneration:

Base salary 4600 DH

Technical allowance 700 DH
Transport compensation 500 DH
Compensation for travel expenses 500 DH (justified up to 300 DH)
Performance allowance 800 DH.
This employee contributes to the CIMR at a rate of 3% calculated on the SBI and group health insurance at the rate of
1.75% calculated on the SBI (contribution capped at 3000 DH/Year)

Additional information

The employee was hired on 01/04/96

He worked the following overtime hours: On May 1st from 7 PM to 10 PM, 1 hour
Sunday and from 2 PM to 7 PM on May 22.