Tax-exempt allowances in Morocco: which ones, and up to what limit?

Last updated: January 2026

Certain bonuses and allowances paid to employees are exempt from income tax and CNSS/AMO contributions, provided they stay within the caps set by regulation.

List of main tax-exempt allowances (2026)

Allowance Exemption cap
Transport (urban area) 500 MAD/month
Transport (outside urban area) 750 MAD/month
Meal allowance ~40 MAD/day worked
Cash handling allowance 150 to 190 MAD/month
Representation 10% of annual base salary
Tools (for workers who own their tools) 100 MAD/month
Travel expenses (with receipts) No cap, based on invoices
Severance pay 1,000,000 MAD

What happens if the cap is exceeded?

Only the amount exceeding the cap becomes taxable and subject to social contributions — the portion below the cap remains exempt. For example, a transport allowance of 600 MAD/month in an urban area: 500 MAD remains exempt, and 100 MAD becomes taxable.

Are these allowances mandatory?

No, except for the seniority bonus. The allowances listed above are generally decided by the employer or negotiated in the employment contract or collective agreement.

Simulate a payslip with these allowances →