Hire employees and contractors in Morocco

Remote’s guide to employing in Morocco.

  • Capital city

    Rabat

  • Currency

    Moroccan dirham
    (DH, MAD)

  • Population size

    37,112,080
    (est. 2020)

  • Languages spoken

    Arabic

  • Availability

    Remote-Owned Entity in Coming in Q1 2022

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

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.

  • Capital city

    Rabat

  • Currency

    Moroccan dirham
    (DH, MAD)

  • Languages spoken

    Arabic

  • Population size

    37,112,080 (est. 2020)

  • 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)

Grow your team in Morocco with Remote

Remote currently offers contractor payment and management services in Morocco. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.

Risks
of misclassification

Like many other countries, Morocco treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

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.

Public holidays

Date
Holiday Name
Extra information
Eid-al-Fitr HolidayWednesday, May 4, 2022Tentative date
Green March DaySunday, November 6, 2022
Islamic New YearSaturday, July 30, 2022Tentative date
Feast of the ThroneSaturday, July 30, 2022
New Year's DaySaturday, January 1, 2022
Labour DaySunday, May 1, 2022
Prophet's Birthday HolidaySunday, October 9, 2022
Oued Ed-Dahab DaySunday, August 14, 2022
Anniversary of the independence manifestoTuesday, January 11, 2022
Eid-Al-AdhaSunday, July 10, 2022Tentative date
Independence DayFriday, November 18, 2022
Revolution DaySaturday, August 20, 2022
Eid-al-FitrTuesday, May 3, 2022Tentative date
Birthday of King Mohammed VI and Youth DaySunday, August 21, 2022
Eid-al-Adha HolidayMonday, July 11, 2022Tentative date
Prophets BirthdaySaturday, October 8, 2022

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.

Competitive benefits package in Morocco

Remote can help you provide a competitive and compliant benefits package for your employees in Morocco. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Morocco

Learn how employment taxes affect your payroll and your employees’ paychecks in Morocco.

  • Employer

    • 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)

  • Employee

    • 0.52% - Short term social benefits

    • 3.96% - Long term social benefits

    • 2.26% - Health insurance

    • 1.5% - Social solidarity contribution (for employees earning 120,000 MAD or more annually, i.e., $13,500)

  • Personal income tax rates

    • 10% - 30,001 – 50,000 MAD ($)

    • 20% - 50,001 – 60,000 MAD ($5616 - $6739)

    • 30% - 60,001 – 80,000 MAD ($6739 - $8,986)

    • 34% - 80,001 – 180,000 MAD ($8,986 - $20,219)

    • 38% - Beyond 180,000 MAD ($20,219)

Types of leave

Paid time off

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.

Public holidays

There are 12 public holidays employees are entitled to take off as paid days.

Sick leave

Employees are entitled to four paid sick days or eight half-days annually.

Maternity leave

Female employees are entitled to 14 weeks of paid maternity leave, split into seven weeks before and after delivery.

Paternity leave

Fathers can take three days of leave within the first month after their child is delivered.

Other leave

  • Marriage leave: Employees are entitled to four days off work for performing marriage rites, or just two days off when attending or helping with a child’s wedding.
  • Bereavement leave: Employees can take between 2-3 days off work to attend the funeral rites of a close relative.
  • Circumcision leave: Two days allowed for undergoing circumcision.
  • Medical leave: Employees can take two days off work to cater to the needs of a spouse, child, or a dependent due to undergo surgery.

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

Moroccan employment specifies a 1-week trial period for all employees, and in addition:

  • 3 months of probation for executive staff, and
  • 6 weeks of probation for non-executive staff

If performance during probation is unsatisfactory, the trial period can be repeated once at most.

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