Beyond the income tax reform, the PLF 2027's most transformative measures are those targeting Morocco's social safety net. The budget allocates 40.16 billion dirhams to the Social Protection and Social Cohesion Support Fund alone, and introduces targeted increases for pensioners, widows and low-income households. These measures represent the new Mansouri government's first concrete delivery on its promise of an "Etat social" — a social state.
The social package in five numbers
PLF 2027, presented October 23, 2026
Pensions: the biggest reform since 2011
Minimum pension: from 1,700 to 3,000 dirhams
The PLF 2027 initiates a progressive increase of the minimum pension to 1,700 dirhams per month from January 2027, benefiting approximately 500,000 retirees, with a target of 3,000 dirhams by the end of the legislature. For many retirees currently receiving less than 1,700 dirhams, the first step alone represents a meaningful increase, with the full 3,000-dirham target expected to transform retirement income for Morocco's most vulnerable pensioners.
The minimum pension varies by scheme (CNSS for private sector, CNR for public sector, RCAR for autonomous sectors). The PLF applies to the CNSS minimum, which covers the vast majority of retirees.
Widow's pension: from 50% to 100%
Perhaps the most impactful single measure: the survivor's pension for widows is raised from 50% to 100% of the deceased spouse's pension. This benefits approximately 431,000 widows who currently receive only half of what their husband earned in retirement.
For a widow whose husband received a 2,500 dirham pension, the monthly survivor benefit would double from 1,250 to 2,500 dirhams. The increase will be implemented progressively, with the full 100% rate targeted by 2031.
Direct social aid: from 500 to 1,000 dirhams
The direct social assistance program (aide sociale directe), launched in 2024 to replace the former conditional cash transfer system, will see its monthly amount progressively increased from 500 to 1,000 dirhams per household. The first increase of 100 dirhams is budgeted for 2027, with the full doubling targeted over the reform period.
The program targets households classified as living in poverty or vulnerability under the Unified Social Registry (Registre Social Unifié), with payments made electronically to reduce leakage and improve transparency.
Health coverage: expanding AMO
The PLF 2027 continues the rollout of universal health coverage (Assurance Maladie Obligatoire), with specific measures for:
- Low-income households: continued subsidized AMO coverage for families enrolled in the social registry
- Electricity bill support: targeted assistance for households with low electricity consumption, helping offset energy costs
- Medication coverage: expansion of the list of reimbursable medications under the basic AMO scheme
Housing: 5.72 billion dirhams
The Solidarity Fund for Housing Support, Habitat and Urban Integration receives 5.72 billion dirhams in the 2027 budget. This finances:
- The direct housing assistance program (aide au logement) that provides monthly subsidies of 70,000 dirhams over 15 years for first-time buyers of units priced at or below 300,000 dirhams
- Social housing programs and slum clearance
- Urban integration projects in peripheral neighborhoods
Who pays for it: the fuel importers
Partially offsetting the social spending, the PLF 2027 raises the corporate income tax rate to 40% (from the standard 35%) for companies engaged in the import or distribution of hydrocarbon fuels whose annual net profit equals or exceeds 100 million dirhams. This targets the major fuel distribution groups operating in Morocco and is framed as a contribution from a sector that benefits from a regulated market position.
The measure is expected to generate significant additional revenue, though the government has not published a specific estimate.
Other social and territorial funds
| Fund | 2027 allocation |
|---|---|
| Social Protection and Cohesion Fund | 40.16 Bn MAD |
| Territorial Development Fund | 10.00 Bn MAD |
| Agricultural Development Fund | 4.20 Bn MAD |
| Housing Solidarity Fund | 5.72 Bn MAD |
| Youth Employment Promotion Fund | 1.99 Bn MAD |
| Digital Transition and Administration Fund | 1.02 Bn MAD |
| Amazigh Language Fund | 0.40 Bn MAD |
The bigger picture
These social measures must be read alongside the income tax reform covered in our IR reform analysis. Together, they represent a deliberate redistribution of fiscal resources toward households:
- The tax reform puts 5.5 billion dirhams back in the pockets of salary earners (87% of whom will pay no IR by 2031)
- The social package directs 40+ billion dirhams to the most vulnerable through pensions, health coverage and direct aid
- The corporate tax increase on fuel importers partially finances both, transferring resources from a concentrated sector to the social safety net
For details on how these social contributions affect your payslip, see our gross vs net salary guide and our minimum wage SMIG 2026 article.
Sources
This article summarizes the social protection provisions of the PLF 2027 presented on October 23, 2026. The full text and accompanying reports are available at finances.gov.ma.
Salah-eddine covers personal income tax, salary calculations, and social security in Morocco. His goal is to make complex tax brackets and pay-slip deductions understandable for every Moroccan employee.
