Income tax (ITS)
Salaries are taxed under the impôt sur les traitements et salaires (ITS), Article 111 and following of the Code général des impôts. The 2026 Finance Law left ITS unchanged. The employer withholds tax monthly.
| Monthly taxable income (MRU) | Rate |
|---|---|
| 0 – 6,000 | 0% (exempt allowance) |
| 6,000 – 9,000 | 15% |
| 9,000 – 21,000 | 25% |
| Above 21,000 | 40% |
One aggregator shows a different five-band 2026 scale, but no other source supports it.
Taxable base: gross salary minus employee CNSS and CNAM contributions. There is no deduction for professional expenses. Benefits in kind are exempt up to 20% of gross salary; sources describe the treatment above that inconsistently.
Social security (CNSS and CNAM)
| Contribution | Employer | Employee | Base |
|---|---|---|---|
| CNSS (pensions, work injury, family and maternity benefits) | 13% | 1% | Capped at MRU 15,000 / month |
| ONMT (occupational medicine) | 2% | – | Capped at MRU 15,000 / month |
| CNAM health insurance | 5% | 4% | Full salary |
| Total | 20% | 5% |
- The capped base is also floored at the SMIG.
- Some sources list a ceiling of 70,000. This is almost certainly an old-ouguiya (MRO) figure. PwC and PaySpace (April 2026) give MRU 15,000.
- Foreign employees contribute on the same basis as nationals, unless a bilateral agreement applies (for example with France).
- Contributions are paid to CNSS quarterly.
Other payroll costs: an apprenticeship tax of 0.6% of total salaries. From 2026, a 0.1% electronic-transaction tax applies to electronic salary transfers of MRU 5,000 or more. The payment operator withholds it; it is not deducted from gross pay.
Severance
Labour Code details could not be checked against the official text. Secondary sources conflict sharply: one says there is no statutory severance, others give different formulas.
What is commonly cited: a dismissal indemnity (not for gross misconduct) after at least one year’s service, under the Labour Code (Law 2004-017) and the 1974 general collective agreement. It rises with years of service and uses average pay over the last 12 months, including bonuses. Confirm the scale and notice periods with local counsel before budgeting.
Salary payment rules
- Salaries are paid monthly in MRU, by bank or, increasingly, mobile-money transfer.
- There is no wage protection system (WPS).
- The 0.1% e-transfer tax applies from 2026.
Working time and leave
- Hours: 40 a week in non-agricultural sectors, 8 a day.
- Overtime: premiums are reported inconsistently, with tiers from 15% to 50%. Check the Labour Code and any collective agreement.
- Annual leave: 1.5 working days per month of service (about 18 working days a year) is commonly cited, but guides range from 15 to 24 days. Confirm locally.
- Maternity leave: 14 weeks (98 days), paid through CNSS.
Minimum wage (SMIG)
About MRU 5,000 a month (MRU 28.846 an hour on a 40-hour week) from 1 April 2026, under Decree No. 2026-064 of 23 April 2026. Agricultural workers earn at least MRU 25 an hour. The previous SMIG was MRU 4,500 a month (from 1 January 2023). Some EOR guides show “MRU 40,000”, which is wrong.
Gotchas for foreign employers
- Two contribution bases: CNSS and ONMT are capped at MRU 15,000, but CNAM is on the full salary. A single capped base understates cost.
- MRO vs MRU: the ouguiya was redenominated in 2018 (1 MRU = 10 MRO). Older sources still quote old-ouguiya figures.
- The April 2026 SMIG rise also raises the minimum CNSS contribution base.
- Foreign employees need a work permit from the labour ministry. A Labour Code reform consultation began in 2025–26, so termination and overtime rules may change.
- Corporate tax (IS) has a minimum of 2.5% of turnover, which can bite loss-making local entities.
- Compare with Morocco and Algeria, or see providers.