Eid is just two weeks away. The mutton prices have soared this year, and now is the time to pay the “mutton bonus” to enable your employees to meet the costs.
Sheep bonus: at the employer’s discretion
This bonus, officially known as the “Eid bonus“, is not compulsory. It may be mentioned in the employment contract.
It is a gratuity, or “social” bonus, meaning that it does not have to be justified by the employee by providing the invoice for the purchase of the sheep.
Who is eligible for this bonus?
And it can be paid to all employees of a company, men or women, Moroccan Muslims or Jews, or foreigners.
However, if it is paid on a regular basis over several years, it becomes an acquired benefit that cannot be called into question, even if it was not mentioned in the employment contract.
Finally, the salaried manager may of course grant himself this bonus.
Tax and social security treatment (CNSS basis)
The mutton bonus is exempt from CNSS contributions and therefore from income tax up to a limit of 2,000 dirhams per employee per year. However, some companies pay up to 2,500 dirhams net.
As the Hegira year is shorter than the calendar year, we will be faced with the problem of two Eids occurring in the same Gregorian year, in 2039, with the first Eid on 6 January and the second on 26 December! Pending special instructions for this situation, there will only be one sheep premium per year!
An overall limit on “social bonuses” or gratuities
There are a number of other bonuses (Ashura, pilgrimage, etc). The exempt amount of all these bonuses is limited to 2,500 dirhams per employee per year.
Payment of Eid bonus
It is customary to pay it a little before Eid – so now. For employees paid on a monthly basis, the payment will be considered as an advance, and will be shown on the June pay slip.
If the bonus is paid in cash, a receipt must of course be signed.
What about self-employed workers?
Today, many autoentrepreneurs are employees in disguise. There’s nothing to stop you increasing their bill this month. As this is not a salary, autoentrepreneurs are not exempt from their turnover tax (0.05% for services).
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