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Weekly highlights

Pensions

Who will benefit from the exemption?

S TARTING next year, basic dirhams (USD 560) of the RCAR
Allowance Scheme or a far cry from
retirement pensions (excluding
the 7,873 dirhams (USD 787) of
supplementary pensions) will
be exempt from income tax.
reflect the heterogeneity of pension
This measure, which will be imple- civil pensions. These discrepancies
mented in two stages (50% in 2025 calculation and management rules.
and 50% in 2026), will cost the Go- In addition, there are inconsistencies
vernment almost 1.2 billion dirhams in the revaluation mechanisms. The
(USD 120 million). However, for a civil pension scheme has not seen an
majority of pensioners, particularly increase since 1997, while in the pri-
those in the private sector, this provi- vate sector, such adjustments require
sion is likely to have little or no im- decrees, the latest dating from 2006,
pact. In fact, only 32 pensioners are except for an exceptional increase
subject to income tax. In the private in September 2022. In contrast, the
sector, pension levels leave little room RCAR is characterized by automatic
for real benefit. At the National Social annual revaluation, offering greater
Security Fund (Caisse Nationale de protection against inflation.
Sécurité Sociale, CNSS), where pen- The pension exemption, while wel-
sions are calculated on the basis of a Moroccan Retirement Fund (Caisse exceed this threshold? The figures comed by some, does not address the
ceiling of 6,000 dirhams (USD 600), marocaine des retraites, CMR), show that very few are concerned, structural challenges facing pension
the maximum pension does not ex- around 20% of pensioners could take reinforcing the impression that this re- schemes. Without harmonized rules
ceed 4,200 dirhams (USD 420). With advantage of this measure. Clearly, form is more symbolic. This measure and regular pension increases, this
tax allowances already in place, this this exemption remains insufficient comes at a time when pension systems measure will remain insufficient. For
exemption remains symbolic for most to counter the erosion of purchasing are structurally fragile and marked a real transformation, the government
beneficiaries. The situation is scar- power, exacerbated by inflation over by profound inequalities. Disparities will have to go beyond fiscal adjust-
cely better in the Group Retirement the past three years. between schemes reinforce this obser- ments to lay the foundations for a
Allowance Scheme (Régime collectif Overall, to benefit fully from this vation. At the CNSS social security fairer, more equitable and sustainable
d’allocation de retraite, RCAR), where exemption, you need to receive a pen- agency, the average monthly pension system. o
only 12% of retirees will actually sion of 11,000 dirhams (USD 1,100) will not exceed 2,168 dirhams (USD Khadija MASMOUDI
benefit from this exemption. At the or more. But how many pensioners 216) in 2023, a far cry from the 5,600

The HCP prepares its transformation

W HEN presenting the sec- an in-depth reform of this institution, management model, modernize its
website and strengthen its external
turning it into a strategic mechanism
toral budget to the Fi-
at the service of the country’s overall
nance Committee of the
partnerships.
House of Councillors, development.
Chakib Benmoussa seemed relieved -Standard of living: In 2024,
of the imposing weight of his former -Strategic program: Given the the HCP also continued to carry out
Ministry of National Education. nature of the work, which often ex- quarterly surveys on employment,
Today, Chakib Benmoussa is at the tends over periods of more than a year, household, business and production
head of the High Commissioner’s he presented a summary of the main conditions. And the former minis-
Office for Planning, which has a bud- activities on the work program for ter cited several structural surveys.
get of 617.8 million Dirhams (USD the period 2023-2024. All this is part Chief among these was the national
61.7 million) for 2025, a budget that of the implementation of the HCP’s survey of household living standards.
has nothing to do with the tens of bil- 2022-2026 strategic program. This This year saw the completion of the
lions of Dirhams (billions of dollars) program has several thrusts, one of data processing and analysis for this
and 300,000-strong workforce of the the most important of which is to sup- survey, as well as the preparation of
Department of Education. It remains port the implementation of the New a report on its preliminary results, to
to be seen whether High Commissio- Development Model (NMD). The be published at the end of the second
ner Chakib Benmoussa will manage to NMD is considered a benchmark for quarter of 2024. The national survey
preserve the independence of this ins- measuring the achievement of sustai- of non-profit institutions was also
titution and distance himself from the ked these questions on the sidelines of nable development goals. In addition, completed. This work has made it
RNI party, where he was a member the Finance Committee meeting. We’ll the HCP’s strategic program includes possible to update the data relating to
of the political bureau. Will he conti- find out in the coming months. strengthening the regional dimension these institutions and to identify the
nue, as his predecessor did, to publish In the meantime, the former minis- of its statistical system and develo- structural changes that have taken
reports independently of the influence ter has not lost sight of the Royal ping its economic and social analy- place in this sector. o
of the majority? Opposition MPs as- Government’s intention to carry out sis resources. It will also digitize its Mohamed CHAOUI

Friday 6 December 2024