Are you in need of new team members? Consider looking outside your borders and hiring international employees. Expanding your team with global talent has many benefits — you can bring in fresh perspectives, access new markets, save on labor costs, and more.
Morocco, for example, boasts a talent pool that’s largely untapped. You can find skilled, educated workers with a strong work ethic. If you’re interested in hiring employees from Morocco, it’s important to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are a number of costs to keep in mind when hiring employees from Morocco. Some are legally mandated, while others are optional but frequently incurred. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Added Benefits
- Bonuses, discounts, and rewards
- Extended health plan
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Morocco
To start, you need to take the following costs into account. Budgeting for these will ensure you comply with Morocco’s local laws and regulations.
Salary
The minimum wage for private sector employees in Morocco ranges from MAD2,828.72 to MAD2,902.00 per month (about USD 277 to USD 284). It’s on track to increase to MAD2,970.00 (about USD 292) in September 2023. On average, the monthly salary in Morocco is around MAD6,000 to MAD10,000 (about USD 588 to 980) for full-time employment.
Taxes and contributions
Employers are subject to the following taxes and contributions:
- 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 or USD 561K – $4.5 million)
Paid leave
Employees in Morocco are entitled to the following types of paid leave from work.
Vacation: Employees are entitled to paid vacation leave after completing one year of continuous service with their employer. The duration of the leave depends on the length of service:
- Five years or less: two days per month worked
- More than five years: 30 working days per year
Sick leave: In Morocco, employees are entitled to paid sick leave after three months of continuous service. The duration of sick leave depends on the length of service. Employees receive 1.5 days of paid sick leave per month for the first six months and two days per month thereafter. A medical certificate from a licensed healthcare professional is required to qualify for sick leave, and employees receive their regular wage or salary during this period.
Marriage leave: Employees have the right to take four days of leave for their own marriage ceremony. They are also granted two days off when participating in or assisting with their child's wedding.
Maternity leave: In Morocco, maternity leave is provided to female employees who have completed at least six months of continuous service. Maternity leave lasts for 14 weeks, with six weeks before childbirth and eight weeks after. During this time, employees are entitled to full pay, which is covered by the National Social Security Fund (CNSS).
Public holidays: Morocco has 15 public holidays. However, this amount can vary yearly. Generally, employees in Morocco are entitled to paid leave on public holidays. If an employee is required to work on a public holiday, they shall receive additional compensation or a replacement day off, per the labor law and employment contract.
Overtime pay
Employees are allowed to work up to 138 extra hours over four months and 250 hours per year. For extra hours worked, the following rates apply:
- 125% of the hourly rate for overtime between 6:00-21:00
- 150% of the hourly rate for overtime between 21:00-6:00
- 200% of the hourly rate for overtime on weekends and public holidays.
Severance pay
Employees who have been employed by the company for a minimum of six months are eligible to receive a severance payout determined by their length of service. The severance pay scales are as follows.
- For the first five years of employment: 96 hours of pay.
- For 6 to 10 years of employment: 144 hours of pay.
- For 11 to 15 years of employment: 192 hours of pay.
- For 15 or more years of employment: 240 hours of pay.
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition around the world, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work.
Perks and rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer their workers rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours. Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it is a good idea to put aside some money for your distributed team’s workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Morocco’s big cities.
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Morocco. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
