Morocco
Make employment in Morocco easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Morocco, all in one easy-to-use platform.
- Capital city
Rabat
- Currency
Moroccan dirham (DH, MAD)
- Languages
Arabic
- Population size
37,112,080
Facts & Stats
- Capital city
Rabat
- Currency
Moroccan dirham (DH, MAD)
- Languages
Arabic
- Population size
37,112,080
- Ease of doing business
Very easy
- Cost of living index
36.85 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
20%
- GDP - real growth rate
2.5 (2019)
Land of deserts, date palms, djellabas, the Kingdom of Morocco is a semi-constitutional monarchy nestled just off the Mediterranean and on the northern edge of Africa.
Morocco has been ruled by the Alaouite dynasty since the 15th century, under whose reign Morocco has grown to Africa’s fifth-largest economy, built on a robust tourist industry, agriculture, and a foray into renewable energy.
Grow your team in Morocco with Remote
Looking to employ workers in Morocco? Companies hiring in Morocco must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Morocco on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Morocco team. You can also pay contractors now in Morocco with Remote.
Risks of misclassification
Morocco, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Morocco may lead to fines and penalties for the offending company.
Employing in Morocco
Labor relations in Morocco are governed by the Moroccan Labor Law of 2003 and the Decree on Public Holidays, both of which spell out provisions for employee protections and workers’ rights applicable to Morocco’s workforce of 11.5 million.
Employees in Morocco enjoy protection against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Morocco.
Minimum Wage
Morocco’s minimum wage is set a 3,000 MADs ($336.98) per month for government employees, 2,570.86 MADs ($288) per month for private-sector employees, and 69.73 ($7.83) MADs per day for agricultural workers.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Morocco fast. The minimum onboarding time we need is only 15 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
12 Public holidays
Competitive benefits package in Morocco
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Morocco are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Morocco
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Morocco.
6.4%
Family benefits
1.05%
Short terms social benefits
7.93%
Long term social benefits
4.11%
Health insurance
1.6%
Professional training tax
2.5%
Social solidarity contribution (for employers with annual profits between 5 – 40 million MADs, i.e., $561k – $4.5 million)
Types of Leave
After spending six months working, employees start accruing 1.5 days of paid leave per month, equivalent to 18 days of paid leave annually. This leave entitlement increases by a day and a half every five years, capped at a maximum of 30 days of annual leave.
Employment termination
Termination process
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses and prior notice should be provided in advance.
Notice period
Notice periods under Moroccan law are dependent on an employee’s tenure, i.e., how long they’ve worked with the employer.
Notice periods for executive staff
1 month: up to 1 year of employment
2 months: 1 – 5 years of employment
3 months: More than 5 years of employment
Notice periods for non-executive staff
8 days: Up to a year of employment
1 month: 1 – 5 years of employment
2 months: 5+ years of employment
Severance pay
Employees are entitled to a severance package after having worked with the employer for at least six months, structured according to the employee’s tenure with the employer.
First five years of employment: 96 hours pay
6 – 10 years of employment: 144 hours pay
11 – 15 years of employment: 192 hours pay
15+ years of employment: 240 hours pay
Probation periods
Probationary periods are allowed and may be renewed once. For indefinite term contracts, their initial durations are:
- 3 months for executives
- 1 1/2 months for white collar workers
- 15 days for blue collar workers
Fixed term contracts may have probationary periods of up to one day per week of the contract, with a cap of 2 weeks for contracts of less than six months and a cap of one month for contracts of longer than six months.