Moroccan Dirham (MAD)
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This country guide is for general informational purposes only and should not be construed as legal advice, nor as binding based on your relationship with Lano. When using Lano's solutions, the specifics may depend on your EOR and Payroll setup with our partners. Although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
As the fifth largest economy in Africa, Morocco is very popular among multinationals that intend to establish a presence in the region. The country’s geographic proximity to Europe is another reason to consider hiring in Morocco.
In addition, wages and salaries are a lot lower than in Europe or North America, and the fact that large parts of the population speak French makes Morocco a very good destination for French companies looking for foreign talent.
An employment contract can be concluded for a fixed term or an indefinite term as well as for the accomplishment of a specific task or project. It is not mandatory to draw up a written contract, but the employer must provide the employee with a confirmation of employment, which must contain at least the following information:
Contact information for the employer and the employee
Description of position, duties and responsibilities
Social security number of the employee
The length of the probation period depends on the employee's position:
Workers: 15 days
Employees: 1.5 months
Executives (and similar): 3 months
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A standard work week comprises 44 hours. Employees may not work more than 10 hours per day.
Any work exceeding 44 hours per week is considered overtime and must be paid at a rate of 125% (150% for night work). The law allows a maximum of 250 hours of overtime per year.
Employees are usually paid once a month. In most cases, payments are made at the end of the month.
In the private sector, the minimum wage currently (February 2023) stands at MAD 2,902.00 per month and MAD 14.81 per hour. A 5% increase to MAD 15.55 per hour is scheduled for September 2023, which will lead to a minimum monthly wage of MAD 2,970.00. For the public sector, the monthly minimum wage is fixed at MAD 3,500.
The employer is not obliged to provide pay for sick days. If the sick leave is expected to last more than 4 days, the employee must provide a medical certificate within 48 hours. From the 4th day onwards, the employee receives sickness benefits from the national social security authority (CNSS). According to Moroccan law, the employer has the right to terminate the employment contract if the employee’s sick leave exceeds 6 months.
All employees are entitled to a seniority bonus which increases progressively. After 2 years of service, the employee is entitled to a bonus of 5% of his/her salary. After 5 years of service, the bonus increases to 10%. And so on. Many employers have also introduced a 13th salary.
Employees and employers in Morocco are subject to the following tax and social security contribution rates (last review February 2023):
20% corporate tax (standard rate)
20% VAT (standard rate)
up to 38% *
Individual income tax rates range from 0% to 38%
7.93% Pension insurance *
6.4% Family benefits
4.11% Health insurance (AMO)
0.67% Maternity benefits *
0.38% Unemployment insurance *
1.6% Professional training tax
* Monthly salary limit of MAD 6,000
3,96% Pension insurance *
2,26% Health insurance (AMO)
0,33% Maternity benefits *
0,19% Unemployment insurance *
* Monthly salary limit of MAD 6,000
* Read more
Individual income is taxed progressively based on the following tax brackets:
Up to MAD 30,000: 0%
MAD 30,001 - MAD 50,000: 10%
MAD 50,001 - MAD 60,000: 20%
MAD 60,001 MAD- MAD 80,000: 30%
MAD 80,001 - MAD 180,000: 34%
Over MAD 180,000: 38%
Please note that the social security contributions indicated above do not necessarily reflect the actual employment costs. These may differ depending on the employment contract and due to other factors (e.g. 13th and 14th salary, health insurance allowances, accrual for severance pay, etc.).
Employees are entitled to 18 paid days off per year, which corresponds to 1.5 days per month (minimum leave entitlement required by law). Every 5 years, the employee’s annual leave entitlement increases by 1.5 days until the maximum of 30 days is reached. In addition, the country observes 13 public holidays.
Employees are entitled to 14 weeks (i.e. 98 days) of maternity leave, of which at least 7 weeks must be taken after birth. During the maternity leave period, the mother receives maternity benefits from the CNSS. Maternity leave can be extended by 3 months or even by a whole year with the employer's permission; however, the extension is unpaid.
The father of the child can take 3 days of leave on the occasion of the birth. Paternity leave is paid by the employer who is then reimbursed by the CNSS.
There is no further parental leave in Morocco.
Employees may be entitled to additional days off in the event of marriage or death of a family member, depending on the applicable collective agreement.
The employer may terminate the employment relationship for several reasons, including
Misconduct of the employee
Except in the case of immediate dismissal for misconduct, the employer must respect a minimum notice period which is determined by Moroccan law. The length of the notice period varies according to the position held by the employee as well as his/her seniority.
For executives and similar positions:
Less than one year of service: 1 month
Between 1 and 5 years of service: 2 months
More than 5 years of service: 3 months
For all other employees:
Less than one year of service: 8 days
Between 1 and 5 years of service: 1 month
More than 5 years of service: 2 months
If the employee's seniority exceeds a period of 6 months, the employer is obliged to provide severance pay (except for cases of dismissal due to misconduct). The amount of severance pay is determined as follows:
Up to 5 years of service: 96 hourly wages for each year
Between 6 and 10 years of service: 144 hourly wages for each year
Between 10 and 15 years of service: 192 hourly wages for each year
More than 15 years of service: 240 hourly wages for each year
This country guide is for informational purposes only and should not be construed as legal advice. The content of this guide contains general information, and although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
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