Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An employer of record in Morocco assumes the important responsibility of managing essential aspects of employment, such as payroll administration, compliance with minimum wage regulations, comprehensive hiring procedures, provision of employee benefits, adherence to social security regulations, facilitation of healthcare and insurance coverage, implementation of leave policies, and compliance with tax obligations.
| Overview | |
| Continent | Africas |
| Country | Morocco |
| Capital | Rabat |
| Time zone | UTC+01:00 (CET)[8] |
| Total Time zones | 1 |
| Working hours per week | 44 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 28th Feb |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Moroccan Dirham (MAD) |
| VAT | the standard rate is 20% |
| Contributions |
Employer Payroll Contributions in Morocco
| Employers | % of Gross Salary |
| Family Benefits | 6.4% |
| Short Term Social Benefits | 1.05% |
| Long Term Social Benefits | 7.93% |
| Health Insurance | 4.11% |
| Professional Training Tax | 1.6% |
| Social Solidarity | 2.5% for companies with annual net profits of 5 to 40 million MAD 3.5% for companies with annual net profits over 40 million MAD |
| Total Employment Cost | 21.09% |
Employee Payroll Contributions in Morocco
| Employees | % of Gross Salary |
| Short Term Social Benefits | 0.52% |
| Long Term Social Benefits | 3.96% |
| Health Insurance | 2.26% |
| Social Solidarity | 1.5% for individuals earning 120,000 MAD annually |
| Total Employee Cost | 6.74% |
Minimum Wages in Morocco
| Minimum Wage | |
| Minimum Wage | 2828.71 MAD per month. |
Payroll Cycle in Morocco
| Payroll | |
| Payroll Cycle | Monthly, Bi-Monthly |
| 13th Salary | There is no law requiring a 13th salary. |
Personal Income Tax in Morocco
| Income Tax | |
| Income Range | Tax Rate |
| Less than 30,000 MAD | 0% |
| 30,001 to 50,000 MAD | 10% |
| 50,001 to 60,000 MAD | 20% |
| 60,001 to 80,000 MAD | 30% |
| 80,001 to 180,000 MAD | 34% |
| Over 180,000 MAD | 38% |
Hiring Options in Morocco
Employee:
Employees in Montenegro can have indefinite or fixed-term contracts and work either full-time or part-time, although part-time employment is less common.
Independent contractor:
Companies have the option to directly hire independent contractors, but it's important to ensure that the contractual arrangements accurately reflect the independent contractor relationship. Independent contractors are responsible for their own taxes and are paid gross.
Agency worker:
The engagement of agency workers in Montenegro is subject to strict regulations. It is recommended to use agency workers only in exceptional circumstances. Recourse to agency workers is allowed in cases such as replacing an absent employee or during a temporary increase in company activity. It is also permissible for seasonal work or work that is not typically covered by indefinite-term employment contracts due to its nature. Agency workers remain employees of the agency rather than the hiring company.
Employment Contracts and Policies in Morocco
In Morocco, there are specific guidelines regarding employment contracts. While written contracts are generally not required, certain circumstances, such as agency workers, may necessitate their use.
When it comes to probationary periods, the duration varies based on factors like the employee's role and the type of contract (whether it is indefinite or fixed). Typically, probationary periods can range from as short as 1 day to a maximum of 3 months.
To ensure compliance and standardization, companies with more than 10 employees are obligated to establish internal regulations. These policies serve as a framework for mandatory provisions that apply to all employees within the organization.
It's important to note that obtaining third-party approval is an essential step in the process. Labor inspectors are responsible for reviewing and granting approval for the internal regulations implemented by companies, ensuring their adherence to relevant labor laws and regulations.
Employees' Minimum Employment Rights
All employees are entitled to minimum employment rights in accordance with labor laws and regulations.
Working Hours
The maximum limit for working time per week is 44 hours. Additional rules govern rest breaks, night work, and the required periods of rest between shifts.
Overtime
Overtime work must be paid mandatorily at a rate of 25 percent for work performed between 6 am and 9 pm, and 50 percent for work performed between 9 pm and 6 am.
If an employee works on a public holiday, they are entitled to double wage payment.
Wages
The minimum wage is MAD2,828.71 (approximately EUR250) per month, or MAD14.81 per hour.
Vacation
After completing 6 months of service in the company, employees are entitled to 1.5 days of vacation per month of service.
Employees who have worked for 12 months in the company are entitled to 18 days of vacation.
Sick Leave and Pay
Sick leave is not paid by the employer. Social security covers 2/3 of the employee's salary starting from the 4th day of absence, up to a maximum of 185 days within a 365-day period.
Maternity/Parental Leave and Pay
Maternity leave is granted for a duration of 14 weeks. Social security pays 100 percent of the employee's salary during this period.
Paternity leave is granted for 3 days, and the employer pays 100 percent of the employee's salary.
Other Leave/Time Off Work
Employees may be entitled to leave for various purposes, such as bereavement, marriage, surgery of a spouse or child, and other circumstances. Specific provisions apply to these situations as per labor laws and regulations.