The choice of this theme is explained by the need to draw attention to the conditions of the working classes, as indicated by the president of the UGTM Group in the Second Chamber, Abdellatif Moustakim, who did not did not fail to point out that workers are still suffering from the repercussions of rising prices after the inflation crisis. The trade unionist welcomed the measures taken by the government to deal with it, while sounding the alarm on the problems linked to speculation, which persist and which mean that public subsidy measures do not always give the expected effect. .
He gave the example of livestock prices during Eid Al Adha. Hence, according to him, the gap between government support and its effects on citizens. This subject has continued to spark debate given that the subsidizing of cattle prices during Eid Al Adha did not contribute to the fall in prices. The Executive, let us remember, granted a subsidy of 500 dirhams per head of sheep in favor of breeders. Added to this is the lifting of customs duties for importers. However, prices soared during Eid, to everyone’s amazement. The devastating role of intermediaries has been singled out.
Consolidate the achievements of social dialogue
For his part, the Secretary General of the UGTM, Enaam Mayara, recalled that it is important that the PLF reconciles investment needs with the imperative to strengthen social spending. In this sense, he stressed the need to preserve purchasing power and the achievements of social dialogue, recalling that “two agreements were concluded between the UGTM and the government, mainly aimed at improving the income of the Moroccan working class , either by salary increases, or by reductions in Income Tax. In the PLF 2025, the government enacted the long-awaited reform of the Income Tax which exempted monthly salaries below 6,000 dirhams by raising the exemption threshold from 30,000 to 40,000 dirhams annually. The reform now affects 80% of employees in the private sector and nearly 96% of retirees. For their part, civil servants benefit from an increase of up to 480 dirhams. These measures are the result of social agreements, including that of April 29, 2024, signed between the government and the social partners.
For this reason, Enaam Mayara stressed the importance of continuing the institutionalization of social dialogue between the government and the most representative trade union centers. A promise that the Executive has tried to keep regularly since its inauguration. The leader of the UGTM estimated that this has an effect on “income and wages, but also labor legislation, the mechanisms for preserving trade union freedoms and the dignity of all workers”. This call comes at a time where the government and social partners continue to seek common ground around the bill relating to the exercise of the right to strike, the negotiations of which have taken a long time compared to the deadline initially planned.
The government has rescheduled the text at the relevant committee level in the House of Representatives while waiting to reach a compromise on the basis of which the bill will be amended. As a reminder, social dialogue commitments will cost the government 20 billion dirhams in 2025 before increasing to 45 billion dirhams the following year.
Beware of too much tax pressure!
Furthermore, during the study day, the speakers underlined the importance of tax relief as provided for in the IR reform to mitigate the impact of inflation and strengthen purchasing power. However, they warned against the continuation of the fiscal pressure by other means including the taxation of consumption which they considered excessive. Some have expressed their fear that Morocco is moving from “water stress to fiscal stress”. In this sense, they emphasized the need to review the application of the law on freedom of prices and competition, which is not scrupulously respected in several areas.
They also stressed that “the issue of unemployment remains a major problem”, noting that the government has placed the issue of employment at the heart of its priorities for the remainder of its mandate.
