Employer of Record Guide in Morocco
Morocco's growing tech sector and strategic location make it an attractive destination for global talent, but navigating local employment laws requires careful attention to detail. Our comprehensive guide helps you hire compliantly while tapping into this dynamic North African market.
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From Casablanca's financial district to emerging tech hubs in Rabat and Tangier, Morocco offers access to skilled professionals in high-demand fields like software development and renewable energy. Understanding the local market dynamics—including a 20% federal tax rate and Arabic-French business culture—is essential for successful expansion.
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Your EOR guide in Morocco
Morocco's employment framework balances worker protections with business flexibility, featuring sector-specific minimum wages and comprehensive social security benefits. Here's what you need to know about compensation structures, leave policies, and compliance requirements to hire effectively in this market.
Minimum Wage
Morocco's national minimum wage (SMIG - Salaire Minimum Interprofessionnel Garanti) varies by sector and region:
| Sector | Minimum Wage (MAD/hour) | Monthly Equivalent (MAD) | Effective Date |
|---|---|---|---|
| Industrial, Commercial & Liberal Professions | 15.00 | 3,500 | July 1, 2024 |
| Agricultural Sector | 14.13 | 3,290 | July 1, 2024 |
| Domestic Workers | 12.50 | 2,915 | July 1, 2024 |
Note: Minimum wage rates are subject to periodic adjustments by the Moroccan government based on economic conditions and cost of living.
Payroll Cycle
- Monthly: Most common payment frequency in Morocco
- Bi-weekly: Less common but permitted
- Payment deadline: Salaries must be paid by the end of the following month
Note: The Moroccan Labour Code requires regular payment intervals and prohibits payment delays beyond one month.
Individual Income Tax
Morocco operates a progressive income tax system with the following brackets:
| Annual Income (MAD) | Tax Rate |
|---|---|
| Up to 30,000 | 0% |
| 30,001 to 50,000 | 10% |
| 50,001 to 60,000 | 20% |
| 60,001 to 80,000 | 30% |
| 80,001 to 180,000 | 34% |
| Over 180,000 | 38% |
Tax Residency Criteria
Individuals are considered Moroccan tax residents if they:
- Maintain their primary residence in Morocco
- Spend more than 183 days in Morocco during a calendar year
- Have their centre of economic interests in Morocco
Employer Payroll Contributions
Employers in Morocco must contribute to various social security schemes administered by the National Social Security Fund (CNSS):
| Contribution Type | Employer Rate | Employee Rate | Total Rate |
|---|---|---|---|
| Social Security (CNSS) | 8.98% | 4.48% | 13.46% |
| Family Allowances | 6.40% | 0% | 6.40% |
| Professional Training Tax | 1.60% | 0% | 1.60% |
| Solidarity Tax | 0.50% | 0% | 0.50% |
| Total Employer Cost | ~17.5% | 4.48% | ~22% |
Note: Contribution rates apply to gross salary up to a ceiling of MAD 6,000 per month for most benefits.
Working Hours
The standard working schedule in Morocco is:
- Regular hours: 8 hours per day, 44 hours per week
- Ramadan hours: 7 hours per day, 39 hours per week during Ramadan
- Maximum daily hours: 10 hours (with overtime compensation)
- Weekly rest: Minimum 24 consecutive hours, typically Friday or Sunday
Note: Working hours may vary during Ramadan and other religious observances.
Overtime Pay
- Overtime rate: 25% premium for hours worked beyond standard schedule
- Night work: 25% premium for work between 9 PM and 6 AM
- Holiday work: 100% premium for work on official holidays
- Maximum overtime: Limited to 2 hours per day, with employee consent required
Bonus Payments
- 13th month bonus: Not legally required but commonly provided
- Performance bonuses: Subject to income tax and social security contributions
- Holiday bonuses: Often provided during religious holidays (Eid)
Full-Time vs. Part-Time
- Full-time: Standard 44-hour work week
- Part-time: Less than 44 hours per week, with proportional benefits
- Fixed-term contracts: Maximum 1 year, renewable once
Annual Leave
- Standard entitlement: 1.5 days per month of service (18 days annually)
- After 5 years: 2 days per month (24 days annually)
- Minimum: 18 working days per year
- Payout rules: Unused leave must be compensated upon termination
Sick Leave
- Duration: Up to 180 days per year
- Compensation:
- Days 1-3: No pay (unless company policy provides otherwise)
- Days 4-90: 50% of salary (paid by CNSS)
- Days 91-180: 25% of salary (paid by CNSS)
- Medical certificate: Required from day 4 onwards
Maternity Leave
- Duration: 14 weeks total
- 7 weeks before expected delivery
- 7 weeks after delivery
- Compensation: 100% of salary (paid by CNSS)
- Job protection: Position guaranteed upon return
Paternity Leave
- Duration: 3 days
- Compensation: 100% of salary (paid by employer)
- Timing: Must be taken within 15 days of birth
Religious Leave
- Hajj pilgrimage: Up to 30 days unpaid leave (once per career)
- Daily prayers: Reasonable accommodation required
- Religious holidays: Paid time off for official Islamic holidays
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 18-24 days/year | Yes | Employer |
| Sick Leave | Up to 180 days | Partially | CNSS |
| Maternity Leave | 14 weeks | Yes | CNSS |
| Paternity Leave | 3 days | Yes | Employer |
| Religious Leave | Varies | Varies | Employer/Unpaid |
Termination Types
Termination with Cause:
- Serious misconduct, repeated violations, or criminal activity
- No notice or compensation required
- Must be documented and justified
Termination without Cause:
- Economic reasons, restructuring, or performance issues
- Requires notice period and severance compensation
- Must follow proper procedures
Notice Period Requirements
Notice periods vary based on employment category and length of service:
| Employee Category | Notice Period |
|---|---|
| Manual workers | 8 days |
| Non-manual workers (< 2 years) | 1 month |
| Non-manual workers (2-5 years) | 2 months |
| Non-manual workers (> 5 years) | 3 months |
Severance Pay
Severance compensation is calculated based on length of service:
| Length of Service | Compensation |
|---|---|
| 6 months - 2 years | 96 hours of wages |
| 2-5 years | 144 hours of wages |
| 5-10 years | 192 hours of wages |
| 10-15 years | 240 hours of wages |
| Over 15 years | 288 hours of wages |
Probationary Periods
- Duration: Maximum 3 months for most positions
- Extension: Can be extended to 6 months for managerial roles
- Termination: Either party can terminate without notice during probation
Final Pay Requirements
- Timeline: Final payment must be made within 48 hours of termination
- Components: Includes salary, unused vacation, severance, and any outstanding benefits
- Work certificate: Employer must provide employment certificate
National Islamic Holidays
Morocco observes both Islamic and secular holidays:
| Holiday | Date (varies annually) |
|---|---|
| New Year's Day | January 1 |
| Independence Manifesto Day | January 11 |
| Labour Day | May 1 |
| Throne Day | July 30 |
| Oued Ed-Dahab Day | August 14 |
| Revolution Day | August 20 |
| Youth Day | August 21 |
| Green March Day | November 6 |
| Independence Day | November 18 |
Islamic Religious Holidays (Dates Vary)
| Holiday | Description |
|---|---|
| Eid al-Fitr | End of Ramadan (2 days) |
| Eid al-Adha | Festival of Sacrifice (2 days) |
| Islamic New Year | First day of Muharram |
| Prophet's Birthday | Mawlid an-Nabi |
Holiday Pay Rules
- Eligibility: All employees entitled to paid holidays
- Working on holidays: 100% premium pay plus substitute day off
- Religious observance: Accommodation required for religious practices
Required Documents for Employment
- Employment contract: Must be in Arabic or bilingual (Arabic/French)
- Work permit: Required for foreign nationals
- Medical certificate: Fitness for work certification
- Criminal background check: From country of origin for foreign workers
- Educational certificates: Authenticated and translated if necessary
- CNSS registration: Social security enrollment
- Tax registration: Income tax identification number
Work Authorization Requirements
Moroccan nationals: No restrictions Foreign nationals: Must obtain:
- Work permit from Ministry of Labour
- Residence permit from local authorities
- CNSS registration number
Language Requirements
- Official languages: Arabic (primary), Berber (Tamazight)
- Business language: French widely used in business
- Contracts: Must be available in Arabic
- Workplace communication: Arabic or French typically required
Background Checks
- Criminal record: Required for foreign workers
- Educational verification: Common for professional roles
- Medical examination: Required for certain industries
- Reference checks: Standard practice but not legally mandated
Data Protection & Privacy
- Personal data: Protected under Moroccan privacy laws
- Employee consent: Required for data collection and processing
- Cross-border transfers: Restricted without proper safeguards
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit application (foreign workers) | 2-4 weeks |
| Employment contract signed | Day 1-3 |
| CNSS registration | Day 3-5 |
| Medical examination | Day 5-7 |
| Payroll setup | Day 7-10 |
Worker Classification
Morocco distinguishes between different types of work arrangements:
- Permanent employees: Full labour law protection and benefits
- Fixed-term contracts: Maximum 1 year, renewable once
- Independent contractors: Limited legal protection, responsible for own taxes
- Temporary workers: Through licensed agencies only
Note: Misclassification can result in penalties and conversion to permanent employment.
Unionisation & Collective Agreements
- Union rights: Workers have the right to form and join unions
- Collective bargaining: Common in larger companies and public sector
- Strike rights: Legal but subject to procedural requirements
- Works councils: Required in companies with 50+ employees
Cultural Considerations
Religious observances:
- Five daily prayers: Reasonable accommodation required
- Ramadan: Reduced working hours (39 hours/week)
- Friday prayers: Extended lunch break common
Communication style:
- Formal and respectful approach preferred
- Hierarchy important in workplace relationships
- French or Arabic language skills valuable
Work-life balance:
- Family obligations highly valued
- Flexible scheduling during religious periods
- Extended lunch breaks common (12 PM - 2 PM)
Remote Work Considerations
- Legal framework: Limited specific regulations for remote work
- Equipment: Employer typically provides necessary tools
- Working hours: Must comply with standard labour law limits
- Health and safety: Employer responsibility extends to home office
Anti-Discrimination Laws
Protected characteristics include:
- Gender and pregnancy
- Religion and belief
- Political opinion
- Trade union membership
- Disability (limited protection)
Note: Morocco's anti-discrimination laws are less comprehensive than many Western countries but are evolving.
Built-in benefits packages for Morocco
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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