Payroll in Morocco: CNSS, AMO, income tax and the payslip

How is a Moroccan payslip structured?

A payslip reads from top to bottom as a series of subtractions. You start with everything the employee earned in the month (gross pay), remove what goes to social security bodies (employee contributions), compute the tax base (taxable income), remove income tax withheld at source, then adjust non-taxable items and miscellaneous deductions to reach net pay.

The payslip also shows the employer and employee details (including the employee's CNSS registration number), the period, the job title and often the year-to-date totals. The table below summarises each line and the point to watch.

From base salary to gross pay: what is added?

Gross pay combines the base salary and every additional element of pay for the month. The base salary cannot be lower than the legal minimum wage (SMIG for non-agricultural activities, SMAG for agriculture), which is revised periodically.

The seniority bonus is mandatory under the Labour Code: it is expressed as a percentage of salary and rises in steps according to the employee's years of service with the company. It is one of the most common errors in manual payroll: the step changes on an anniversary date and nobody remembers to update it.

• Base salary (monthly, or hourly rate times hours worked).
• Overtime, paid at the premium set by the Labour Code.
• Seniority bonus, in steps based on years of service.
• Bonuses and incentives (performance, targets, 13th month…).
• Benefits in kind (housing, company car…), to be valued.
• Allowances (transport, meals…), some of which may be exempt within limits set by regulation.

What are the employee CNSS and AMO contributions?

Employees contribute to the CNSS for social benefits (daily allowances, pension and so on) and to AMO, the compulsory health insurance scheme. These contributions are withheld from gross pay. The social benefits contribution is calculated on capped salary, whereas the AMO contribution applies to the full salary.

The employer also pays its own, larger share, which does not appear in the employee's net pay but weighs on the total cost of employment: employer share of social benefits and AMO, family allowances and the vocational training levy, all collected by the CNSS. Rates and the ceiling change over time: always use the values published by the CNSS and have them checked by your chartered accountant.

How do you get from gross pay to taxable income?

Taxable income is the base for income tax. You start from taxable gross pay (gross pay excluding exempt items), then deduct the employee's CNSS and AMO contributions and a flat-rate professional expense allowance, calculated as a percentage of salary and capped. Depending on the employee's situation, other items may be deductible, such as some supplementary pension contributions or interest on a loan for the main home, subject to conditions.

One point is often misunderstood: the professional expense allowance is not deducted from the salary paid. It is only used to compute the tax. The employee does not receive less because of it; on the contrary, it lowers their income tax.

How is income tax on salary calculated?

Employee income tax is withheld at source by the employer. It is calculated by applying a progressive scale, defined on an annual basis and converted to a monthly figure, to taxable income: the higher the income, the higher the marginal bracket. Family deductions (spouse, dependent children) are then subtracted, within the set limit.

The scale, brackets and deductions are set by each finance law and have been changed several times. Never copy a scale found on a forum: use the current year's scale published by the DGI, and have your first payslips reviewed by your accountant. The tax withheld is then paid over to the DGI under the rules and deadlines in force.

Which filings: DAMANCOM every month, the 9421 return every year?

Every month, the employer declares employees' salaries to the CNSS and pays the related contributions through the DAMANCOM online portal. The declaration lists each employee, days worked and salary. Late or incorrect filings can lead to surcharges and leave employees without properly recorded rights.

Every year, the employer files the salaries and wages return, known as the 9421 return, on the DGI's SIMPL-IR portal. It summarises, for each employee, the pay, deductions and income tax withheld over the year. The 9421 totals must match the year's payslips exactly, which is why running payroll in a single tool avoids discrepancies.

How does SOGESTIO compute payroll and prepare filings?

The SOGESTIO Payroll module produces payslips with CNSS, AMO, income tax and seniority. Each payslip automatically generates its accounting entry on the Moroccan chart of accounts (CGNC). For filings, SOGESTIO produces a preparatory DAMANCOM file for the CNSS declaration and a preparatory 9421 return in XML format, to be transferred into SIMPL-IR.

SOGESTIO prepares and automates, but does not replace your accountant: filings are still checked and submitted by the company or its accountant. The Payroll module is included in the Pro (449 DH/month excl. VAT) and Groupe (990 DH/month excl. VAT) plans, with a 14-day free trial and no card required.