13th month: A bonus disappearing in Morocco?

As the end of the year approaches, the question arises more and more: is the 13th month becoming an exception rather than a norm in Morocco? In an economic context marked by persistent challenges, this bonus, traditionally used to retain and motivate employees, seems to be in decline in many sectors of the country.

The 13th month, often perceived as a standard in several countries, still remains a heterogeneous practice in Morocco. In sectors like finance, insurance or large multinationals, it is often taken for granted. On the other hand, in other areas such as agriculture, retail or local SMEs, it remains an exception.

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According to a recent survey conducted by the High Commission for Planning (HCP), around 45% of Moroccan companies allocate some form of bonus at the end of the year. These bonuses vary considerably: ranging from an additional month of salary to modest lump sums, or even conditional on individual or collective performance. This variation reflects the disparities between sectors and companies, which leads us to ask the question: is the 13th month on the verge of disappearing?

L’obstacle fiscal

One of the main reasons for this disparity is Moroccan taxation. Unlike some countries where end-of-year bonuses benefit from a lighter tax regime, they are subject to income tax in Morocco. This tax burden could discourage certain businesses, particularly SMEs, from generalizing this practice. For example, according to article 39 of the General Tax Code, bonuses paid for results are taxable at the same rate as other income.

End of year bonuses are not just a financial bonus; they also play a crucial role in retaining talent. “It’s a way of recognizing the effort made throughout the year and rewarding performance,” explains Yassine B., human resources director of a company based in Casablanca. In an increasingly competitive job market, particularly for qualified profiles, companies that offer bonuses have an advantage in attracting and retaining talent.

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Some companies compensate for the absence of financial bonuses with other forms of benefits: gift cards, vouchers, or even festive events for employees. Although these initiatives are appreciated, they do not replace the impact of direct remuneration.

And elsewhere, how is it going?

Internationally, the 13th month is a standard in many countries such as France or Belgium, where it is often included in collective agreements. In the Gulf countries, bonuses can reach significant amounts, especially in large companies. Conversely, Morocco seems to be lagging behind, even if certain multinationals operating in the country apply these international standards.

The decline of the 13th month in Morocco seems to be linked to several factors: tax disparities, a non-uniform labor code, and economic pressures which make this bonus less accessible, particularly for SMEs. As economic challenges persist, some companies may opt for other forms of benefits to compensate for this absence. However, to maintain the 13th month as a standard, it would be necessary to improve legislation on taxation and working conditions so that these bonuses are more accessible to all companies.