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Capital City
Rabat
Currency
Moroccan Dirham
(
د.م.
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January- 31 December
Employer Tax
20.71% - 25.71%
Languages
Arabic
Capital City
Rabat
Currency
Moroccan Dirham
(
د.م.
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January- 31 December
Employer Tax
20.71% - 25.71%
Languages
Arabic
Morocco boasts a talented and diverse workforce, with a growing pool of skilled professionals proficient in various industries, including technology, manufacturing, tourism, and agriculture.
With its strategic geographical location bridging Europe, Africa, and the Middle East, hiring in Morocco provides access to markets and opportunities for international expansion and trade.
The Moroccan government offers incentives and support for foreign investors, facilitating the establishment of businesses and ensuring a favorable environment for hiring and growth.
Leveraging Morocco's lower labor costs compared to many Western countries can result in significant cost savings for companies, while still maintaining high-quality output and service standards.
Businesses can only operate smoothly in Morocco if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Morocco below, to avoid any compliance issues.
In accordance with Moroccan labor regulations, employers must provide employees with written documentation outlining key aspects of employment contracts, including:
We can help you get a new employee started in Morocco quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
According to Article 184 of the Labor Code, the standard weekly working hours in Morocco are set at 44, with a maximum of 10 hours per day.
In Morocco, overtime requires mutual agreement and is governed by employment contracts and collective agreements. The maximum limits are 138 hours over four months and 250 hours annually. Compensation ranges from 125% to 150% of the regular salary, depending on the time and day worked. Compliance ensures fair compensation and legal adherence.
All employees undergo a one-week trial period for any position. Subsequent probation periods vary based on job roles: 15 days for blue-collar workers, 45 days for white-collar workers, and three months for management.
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1 January- 31 December is the 12-month accounting period that businesses in Morocco use for financial and tax reporting purposes.
The payroll cycle in Morocco is usually Monthly, with employees being paid by the last working day of the month .
The minimum wage for employees in Morocco is typically 16.33 MAD per hour, amounting to ~3,120 MAD per month for a typical 44 hour work week.
While there are no legal provisions for 13th-month salaries in Morocco, it's a common practice for employers to provide such bonuses or seniority bonuses to employees.
Employer payroll contributions are generally estimated at an additional 0% - 38% on top of the employee salary in Morocco.
In Morocco , the typical estimation for employee payroll contributions cost is around 6.55% - 8.05%.
In Morocco, income tax operates on a 'Pay As You Earn' basis, with rates ranging from 0% to 38%. Taxation follows a progressive scale, where rates increase with income levels.
In Morocco, retirement pension enrollment is optional, but companies affiliating with CIMR must choose one of two retirement plans. Employee contributions are deducted from their wages and shown on payslips, while employers must remit their contributions within 45 days after each quarter.
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The annual leave entitlement in Morocco is 18 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Morocco has 12 mandatory national public holidays in a year.
After six months of continuous service, employees accrue 1.5 days of leave per month, totaling 18 paid days of annual leave. For employees under 18 years old, this entitlement can be raised to 24 days per year. Paid annual leave increases by 1.5 days every five years until reaching a maximum of 30 days.
Pregnant employees in Morocco are granted 14 weeks of paid maternity leave, split into seven weeks before and seven weeks after birth. Maternity pay is provided at the regular salary rate and covered by the employer. Additionally, mothers have the option to request up to a year of additional unpaid leave.
Male employees in the public sector are entitled to 15 days of fully paid paternity leave. In the private sector, fathers in Morocco are entitled to three days of paid paternity leave within the first month following the birth of their child.
Employees in Morocco are entitled to four days (or eight half days) of paid sick leave per year. If an employee is sick for more than 180 consecutive days within a year, the employer has the right to request their resignation.
Morocco does not have a separate shared parental leave policy.
An employee is entitled to up to 4 days leave when they get married, 2 days of which are paid.
An employee is entitled to up to 3 days (1 day is paid) of bereavement leave in the death of an immediate family member.
Paid leave for surgery on the spouse or dependent child: 2 days. Leave for Circumcision: 2 days.
Employers in Morocco may terminate fixed-term contracts for reasons such as:
The amount of notice is dependent on the function of the employee and the length of service. If the employer terminates the contract, the notice period is as follows:
Employers must offer severance pay to eligible employees, calculated at 96 hours per year of service, rising to 144, 192, and 240 hours per year after 5, 10, and 15 years respectively. The hourly rate is based on the average wages of the preceding 52 weeks.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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