Country Payroll Guide Morocco

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Key Facts

Capital
Rabat
Date format
dd/mm/yyyy
Currency
Moroccan Dirham (MAD)
VAT
the standard rate is 20%

Contributions

Employers

Family Benefits
Family Benefits - 6.4%
Short Term Social Benefits
Short Term Social Benefits - 1.05%
Long Term Social Benefits
Long Term Social Benefits - 7.93%
Health Insurance
Health Insurance - 4.11%
Professional Training Tax
Professional Training Tax - 1.6%
Social Solidarity
  • 2.5% for companies with annual net profits of 5 million to 40 million MAD
  • 3.5% for companies with annual net profits over 40 million MAD
Total Employment Cost
Total Employment Cost - 21.09%

Employees

Short Term Social Benefits
Short Term Social Benefits - 0.52%
Long Term Social Benefits
Long Term Social Benefits - 3.96%
Health Insurance
Health Insurance - 2.26%
Social Solidarity

1.5% for individuals earning 120,000 MAD annually

Total Employee Cost
Total Employee Cost - 6.74%

Minimum Wage

Minimum Wage
The minimum wage in Morocco is 2828.71 MAD per month.

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There is no law requiring a 13th salary.

Income Tax

Employee Income Tax (1)
Less than 30,000 MAD - 0%
Employee Income Tax (2)
30,001 to 50,000 MAD - 10%
Employee Income Tax (3)
50,001 to 60,000 MAD - 20%
Employee Income Tax (4)
60,001 to 80,000 MAD - 30%
Employee Income Tax (5)
80,001 to 180,000 MAD - 34%
Employee Income Tax (6)
Over 180,000 MAD - 38%

Working Hours

General Working Hours

44 hours per week.

Overtime

For additional hours between 6 a.m. to 9 p.m. employees will receive 125% their normal rate, 150% their normal rate from 9 p.m. to 6 a.m., and 150%-200% their normal rate for work done on one of the weekly holidays.

Leave

Paid Time Off

After six months of continuous service, an employee begins earning 1.5 days of leave per month giving employees 18 days of annual leave.

The duration of paid annual leave is increased by one and a half days every 5 years until a maximum of 30 days annual leave is reached.

Public Holidays

12 public holidays.

Sick Days

Employees are entitled to 4 days or 8 half days of paid sick leave annually. If the absence lasts more than four days, the employee must inform the employer of the probable duration of absence and provide a medical certificate justifying the absence.

An employer may have an employee resign if they miss more than 180 consecutive days during a period of one year due to sickness.

Maternity Leave

Pregnant employees receive 14 weeks of maternity leave, 7 of which must be used after birth.

Paternity Leave

Fathers receive 3 days of leave within the first month of the child’s birth.

Parental Leave

There is no parental leave apart from maternity and paternity leave.

Other Leave

Marriage Leave:

  • the employee: 4 days
  • child of the employee or of a child from a previous marriage of the employee’s spouse: 2 days.

Bereavement Leave:

  • spouse, of a child, of a small child, of an ascendant of the employee or of a child from a previous marriage of the employee’s spouse: 3 days.
  • brother, a sister of the employee, a brother or sister of the employee’s spouse or an ascendant of the spouse: 2 days.

Leave for Circumcision: 2 days.

Leave for surgery on the spouse or dependent child: 2 days

Termination

Termination Process

In order to terminate an employee, an employer must have sufficient reasons and provide notice.

Notice Period

For executives and similar positions:

  • Less than 1 year – 1 month.
  • 1 year to 5 years – 2 months.
  • More than 5 years – 3 months.

For employees:

  • Less than 1 year – 8 days.
  • 1 year to 5 years – 1 month.
  • More than 5 years – 2 months.
Severance Pay

The employee in the contract is entitled to compensation in the event of dismissal after 6 months of work in the same company.

The amount of the termination indemnity for each year or fraction of a year of actual work is equal to:

  • 96 hours of salary for the first five years.
  • 144 hours of salary from 6 to 10 years.
  • 192 hours of salary from 11 to 15 years
  • 240 hours of salary for the period exceeding 15 years.

The termination indemnity is calculated on the basis of the average wages received during the fifty-two weeks preceding the termination of the contract.

Probation Period

All employment begins with a 1-week trial period.

Probation periods are set at:

  • 3 months for executives and the like.
  • 1.5 months for employees.

The trial period can be renewed once.

Visa

Employment Visa

Morocco only requires certain nationalities to get visas for stays up to 90 days. Those exempt include citizens of the US, EU, Japan, Australia, and more.

However, all foreigners will need a Morocco work visa to legally work in the country.