Morocco Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
Contact us for a payroll simulation, ask a practical question or download our free country guide for Morocco.
MOROCCO
Deploy one employee or payroll thousands. Why not just contact us to find out how?
Save time! Don't spend hours researching!
Contact us for a payroll simulation, ask a practical question or find out how things work in the country.
Morocco Payroll and Employer of Record: Employment Contracts
Morocco payroll, PEO and EOR info: Foreign nationals must get a work permit. There are several processes involved in getting a work permit in Morocco. Work permits are given out for a set amount of time and need to be renewed on a regular basis. In addition to a work permit, foreign workers in Morocco may also need to apply for a residency permit.
Probation Periods
For any position, there is a one-week trial period for all employees. According to job position/status, the following probationary time varies: for blue-collar workers, it is 15 days; for white-collar employees, it is 45 days; and for management, it is three months.
Notice Periods
Employment less than one year – eight day notice period.
Employment from one to five years – one month notice period.
Employment for more than five years – two month notice period
Minimum Wage
The minimum wage is currently MAD 3,500 per month for anyone in the public sector and MAD 2,902 per month for anyone in the private sector.
Working Hours
44 hours a week with a maximum of 10 hours per day.
Overtime
The rate of pay for overtime that occurs between 6 a.m. and 9 p.m. will increase by 25%. Pay increases by 50% for overtime worked between 9 p.m. and 6 a.m. Depending on the terms of the employee’s contract, wages are increased by 50% or 100% of the regular pay rate if overtime is necessary on a weekend or rest day.
Non Compete
Non-compete agreements are recognized and enforceable in Morocco as long as certain requirements are met.
Severance
If an employee has at least six months of employment, employers should give severance pay (if applicable) at a rate of 96 hours of salary for each year of service; this rate should rise to 144 hours for five years of service, 192 hours for ten years, and 240 hours for fifteen years.
The average pay earned over the fifty-two weeks prior to the contract’s termination is used to determine the severance hourly rate.
Termination
A valid reason for terminating a fixed-term employment contract includes a major contract violation, discipline-related actions and/or unforeseen circumstances.
A notice period or payment in place of notice must be provided in the event that an indefinite-term employment contract is terminated, unless there is just grounds for the termination. For employment of fewer than five years, the length is between one and three months.
Collective Bargaining
Collective bargaining is authorized by the Labor Code and is acknowledged as a fundamental right in Morocco.
Enforcement
The Ministry of Labor of Morocco is in charge of monitoring adherence to labor laws and regulations. Labor tribunals, which have the power to hear and decide on a variety of labor-related problems, are often the venues for hearing disputes.
PAID TIME OFF
Annual Vacation
Up to 18 days of paid leave per year of employment.
Sick
Employees may not miss more than four days of work as a result of illness or accident. Obtaining a medical certificate is necessary if the absence is caused by illness or injury and lasts more than four days. Employers may assume a resignation has taken place if an employee is absent for more than 180 days in a row.
Maternity
Employees who are pregnant are entitled to 14 weeks of paid maternity leave, with a required leave time of seven continuous weeks following delivering.
Paternity
Three paid paternity leave days are granted to employees. It’s not necessary for the three days to be consecutive. In the month following labor, these must be taken.
Family
N/A
National Holidays
In a given year, there are 13 official holidays in Morocco.
Other Paid Time Off
The terms of the collective bargaining agreement or employment contract may include additional leave that an employee may take. An employee is entitled to up to 4 days’ leave when they get married and up to 3 days of bereavement leave in the death of an immediate family member. Leave for surgery on the spouse or dependent child is 2 days, as is leave for circumcision.
STATUTORY EMPLOYEE BENEFITS
Unemployment
Paid for up to six months after unemployment. Insured persons – 0.19% of gross monthly covered earnings and employers – 0.38% of gross monthly covered payroll. The maximum monthly wage used to calculate contributions are 6000 dirhams.
Workers Compensation
1% of monthly gross covered earnings. The monthly minimum wage used to calculate contributions is the national monthly minimum wage. The national monthly minimum wage for citizens is 220 dinars and 150 dinars for noncitizens. The maximum monthly earnings for contribution purposes are 3,000 dinars.
Social Security
The company currently contributes around 23%, and the employee contributes about 5%. These contributions are used to pay for a variety of social security benefits, including pensions, health insurance, and unemployment benefits.
Retirement
To pay for the retirement benefits of existing and future pensioners, both employers and employees are expected to contribute to the social security system.
Employees are required under Moroccan labor legislation to make payroll deductions from their wages in order to support the social security system. The particular rate of contribution may change in accordance with the employee’s pay and other conditions.
Health
Employees in Morocco are required by law to have health insurance. Employees must pay a portion of their wage towards the cost of their coverage in addition to the employer providing health insurance coverage for them. Employees have a choice between public and private insurance plans that make up Morocco’s health insurance system.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Workers’ compensation is provided in Morocco by the National Social Security Fund (CNSS) for employees in the private sector.
Retirement
Private sector employees in Morocco have access to the Supplementary Pension Scheme, a supplemental retirement savings program (SPP).
Health
Although it is not required by labor law, businesses and employees can choose to provide private health insurance.
All employees are eligible for basic health care under the Moroccan Social Security Act. However, some firms can decide to provide their staff members with private health insurance as an added perk.
Insurance
In addition to the mandatory insurance coverage mandated by the Moroccan Social Security Act, businesses and employees have the option of private insurance. Added health insurance, life insurance, disability insurance, and other insurance products that are not covered by the CNSS may fall under this category.
PERSONAL INCOME TAX
Tax Year
Moroccan tax year runs from January 1st to December 31st.
Tax Tables
| Annual taxable income (MAD) | Tax rate (%) |
| 0 to 30,000 | Exempted |
| 30,001 to 50,000 | 10 |
| 50,001 to 60,000 | 20 |
| 60,001 to 80,000 | 30 |
| 80,001 to 180,000 | 34 |
| More than 180,000 | 38 |
Taxation Method
Personal income tax in Morocco ranges from 0% to 40% with progressive tax brackets.
Double Taxation
Morocco has signed several double taxation avoidance agreements (DTAs) with other countries.
Residence Requirements
If a person meets one of the following criteria, they are called Moroccan tax residents:
Their main economic focus is Morocco.
Moroccan tax citizens are subject to taxes on their worldwide income.
If someone lives in Morocco for more than 183 days out of every 365.
Only income with a Moroccan source is subject to taxation for non-tax residents.
Payroll Calendars
Payroll is on a done monthly basis.
Rebates & Tax Credits
To promote investment and lower taxes, Morocco offers a variety of tax breaks and credits to both individuals and businesses.
There are several exemptions and deductions available to people, including deductions for housing costs, dependent children, and charitable contributions. Additionally, tax credits are accessible for some costs, including those related to healthcare, education, and investments in energy efficiency.
Health Insurance
Employees in Morocco are required by law to have health insurance. Employees must pay a portion of their wage towards the cost of their coverage in addition to the employer providing health insurance coverage for them. Employees have a choice between public and private insurance plans that make up Morocco’s health insurance system.
Unemployment
In Morocco, companies are obligated to contribute to their employees’ unemployment benefits as a component of the nation’s social security system. The employer pays the unemployment contribution on the employee’s behalf. It is computed as a percentage of the employee’s wage.
Social Security
A social security system is in place in Morocco to cover workers in the event of an accident, illness, disability, old age, or death. The National Social Security Fund, which oversees the system, manages contributions from both employers and employees.
Employers must register their workers and make regular payments to the social security system on their employees’ behalf. The cost of an employee’s social security benefits must also be covered in part by the income of the employee.
PAYROLL ELEMENTS
Income
Basic salary, overtime, allowances, commission and bonuses are included in an employees income.
Bonuses
There are no legal requirements in Morocco regarding bonuses.
Allowances
- Housing
- Transportation
- Meal
- Education
- Hazard pay
Benefits in Kind
Benefits in kind are regarded as taxable income for the employee under Moroccan labor law, and its value must be added to the employee’s taxable income. Employers are responsible for determining and reporting the value of benefits in kind to the relevant tax authorities.
Investment Income
Investment income is subject to tax under Moroccan law.
Retirement Funding
To pay for the retirement benefits of existing and future pensioners, both employers and employees are expected to contribute to the social security system.
Employees are required under Moroccan labor legislation to make payroll deductions from their wages in order to support the social security system. The particular rate of contribution may change in accordance with the employee’s pay and other conditions.
Health Insurance
Employees in Morocco are required by law to have health insurance. Employees must pay a portion of their wage towards the cost of their coverage in addition to the employer providing health insurance coverage for them. Employees have a choice between public and private insurance plans that make up Morocco’s health insurance system.
Risk Insurance
Employers are generally not required to provide risk insurance coverage for their employees. However, some employers may choose to provide this coverage as part of their employment package as a benefit to their employees.
Taxable Income
Morocco Payroll – Taxable Income
The personal income tax rate in Morocco ranges from 0% to 40%, with progressive tax brackets.
Allowable Deductions
Income tax, social security contributions, health insurance contributions and retirement fund contributions.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Personal income tax rate in Morocco ranges from 0% to 40%, with progressive tax brackets.
Unemployment
For a maximum of six months, the insured will get 70% of their average monthly wage from the 36 months prior to losing their job. Insured persons – 0.19% of gross monthly covered earnings and employers – 0.38% of gross monthly covered payroll. The maximum monthly wage used to calculate contributions are 6000 dirhams.
Social Security
The company currently contributes around 23%, and the employee contributes about 5%. These contributions are used to pay for a variety of social security benefits, including pensions, health insurance, and unemployment benefits.
Workers Compensation
1% of monthly gross covered earnings. The monthly minimum wage used to calculate contributions is the national monthly minimum wage. The national monthly minimum wage for citizens is 220 dinars and 150 dinars for noncitizens. The maximum monthly earnings for contribution purposes are 3,000 dinars.
ADMINISTRATION
Income
The personal income tax rate in Morocco ranges from 0% to 40%, with progressive tax brackets.
Payroll Taxes
The personal income tax rate in Morocco ranges from 0% to 40%, with progressive tax brackets.
Unemployment
For a maximum of six months, the insured will get 70% of their average monthly wage from the 36 months prior to losing their job. Insured persons – 0.19% of gross monthly covered earnings and employers – 0.38% of gross monthly covered payroll. The maximum monthly wage used to calculate contributions are 6000 dirhams.
Social Security
The company currently contributes around 23%, and the employee contributes about 5%. These contributions are used to pay for a variety of social security benefits, including pensions, health insurance, and unemployment benefits.
Workers Compensation
1% of monthly gross covered earnings. The monthly minimum wage used to calculate contributions is the national monthly minimum wage. The national monthly minimum wage for citizens is 220 dinars and 150 dinars for noncitizens. The maximum monthly earnings for contribution purposes are 3,000 dinars.
Statutory Benefits
Paid annual-,sick-,maternity and paternity leave. Also includes paid time off on public holidays.
Employee Benefits
All employees are entitled to time off, including on public holidays.
LEGISLATION
- Labor Code
- Social Security Code
- Occupational Health and Safety Law
- Labor Inspection Law
- Retirement Law
STATUTORY BODIES
- Labor Inspection
- Service Social Security Fund
- Ministry of Labor
- National Labor Council
- Labor Courts
