Morocco
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Introduction
General Overview & Economic Facts
- Morocco, officially known as the Kingdom of Morocco, is a country located in the Maghreb region of North Africa
- It spans an area of approximately 446,550 km2 (172,300 sq2) and has a population of approximately 37 million
- Morocco ranks fairly in terms of human development with a ranking of 121st on the HDI (2019)
- Morocco’s economy ranks 60th in terms of nominal GDP (2022) and 54th in terms of PPP (2022)
Why Employ In Morocco?
- The main exports from Morocco include agricultural produce, phosphate minerals and textiles
- 16.55% of the population is between the ages of 15 and 24 years, with 40.64% of the population being between the ages of 25 and 54. Morocco has a fairly mature population, making it an excellent country to hire more experienced professionals
Overview Of The Labour Law
- The main source of labour law is the Labour Code and Decree on Public Holidays
- The Code provides the minimum terms and conditions for employment including working hours, leave, notice periods and severance pay
- Morocco’s labour regulations offer protection to both employers and employees
Fun Country Facts
- Morocco was the first country to recognize the USA as a nation
- The oldest human sculpture was discovered in Morocco
- Morocco was founded by a descendant of Prophet Muhammad
Why Use Playroll Services For Morocco?
- Employing in Morocco requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Morocco
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security (CNSS)
Calculated on gross monthly salary
Family Allocation
6.40 %
Social Allocation (calculated on a maximum salary of MAD 6,000.00 per month)
8.98 %
Professional Training Tax
1.60 %
Medical Insurance
4.11 %
Business Tax (Taxe professionnelle)
Determined by the rental value of business premises and fixed assets, with an exemption for the first 5 years of activity. Rental value is exempted for the portion of the cost exceeding MAD 50 million
+/- 10.00 – 30.00%
Work Accident Insurance
Varies by insurance provider
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security (CNSS)
Calculated on a maximum salary of MAD 6,000.00 per month
8.98 %
Medical Insurance
4.11 %
Income Tax
Employees are taxed on Worldwide Income
0.00 – 30,000.00
0.00%
30,001.00 – 50,000.00
10.00%
50,001.00 – 60,000.00
20.00%
60,001.00 – 80,000.00
30.00%
80,001.00 – 180,000.00
34.00%
180,001.00 or more
38.00%
Employment Terms
General
Minimum Wage
- MAD 2902.00 per month
Working Hours
- Maximum of 44 hours per week
- There is not statutory meal break
- Typical working hours are 09h00 to 17h00, Monday to Friday
Overtime
- Any work performed in excess of the employee’s normal working hours are regarded as overtime
Notice Period
Executive employees
- Employed between 0 and 1 year- 1 months’ notice
- Employed between 1 and 5 years- 2 months’ notice
- Employed for 15 or more years- 3 months’ notice
Non-executive employees
- Employed between 0 and 1 year- 8 days’ notice
- Employed between 1 and 5 years- 1 months’ notice
- Employed for 15 or more years- 2 months’ notice
Severance Pay
Severance pay comprises of a dismissal indemnity and a damages payment:
1. Dismissal indemnity
- Employed between 0 and 5 years- 96 hours of pay
- Employed between 6 and 10 years- 144 hours of pay
- Employed between 11 and 15 years- 192 hours of pay
- Employed for 15 or more years- 240 hours of pay
2. Damages
1.5 times the last monthly salary
Probation Period
There is no statutory probation period
Optional probation periods may be a maximum of:
- Indefinite term contracts:
Executives- 3 months
White Collar- 1.5 months
Blue Collar- 15 days
- Fixed term
0 – 6-month contract- 2 weeks
6 month or longer contract- 1 month
Bonus
- There is no statutory bonus
- It is common to provide a seniority bonuses
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 11th – Anniversary of the Manifesto of Independence
- May 1st – Labour Day
- May 2nd – Eid al Fitr
- July 10th – Eid al Adha
- July 30th Throne Day
- July 30th – Hijra New Year
- August 14th – Oued Ed Dahab Day
- August 20th – Revolution of the King and People Day
- August 21st – Birthday of King Mohammed VI (Feast of Youth)
- October 8th- The Prophet Muhammad’s Birthday
- November 6th – Feast of the Green March
- November 18th – Independence Day
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
– Employed between 0 and 6 months- 0 days
– Employed between 6 months and 5 years- 18 days
– Employed between 5 and 10 years- 19.5 days
– Employed between 10 and 15 years- 21 days
– Employed between 15 and 20 years- 22.5 days
– Employed between 20 and 25 years- 24 days
– Employed between 25 and 30 years- 25.5 days
– Employed between 30 and 35 years- 27 days
– Employed between 35 and 40 years- 28.5 days
– Employed for 40 or more years- 30 days
Sick Leave
- Paid leave
- Paid by Social Security
- 4 days
Maternity Leave
- Paid leave
- Paid by Social Security
- 14 weeks
Paternity Leave
- Paid leave
- Paid by employer
- 3 days
Family Medical Leave
- Unpaid leave
- Circumcision of a child- 2 days
- A spouse or dependent child’s surgery- 2 days
Bereavement Leave
- Unpaid leave
- Death of spouse, child, grandchild- 3 days
- Death of brother(in-law) or sister(in-law)- 2 days
Marriage Leave
- Paid leave
- Paid by employer
- Own wedding- 2 days paid leave, 2 days unpaid leave
- Child’s wedding- 2 days unpaid leave
Hajj Leave
- Unpaid leave
- 30 days