Definitive Guide to Hiring in Morocco

Hiring in Morocco

Hiring employees compliantly in Morocco means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Morocco so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Morocco; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Morocco

Employment laws in Morocco are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Morocco employment laws and Morocco policies here.

Employee Probation Period

• The Labor Code provides maximum time limits depending on the category
  
  • 15 days for manual workers
  • six weeks for employees
  • three months for managerial staff. 
• The probationary period can only be renewed once for the same length of time

Annual Leave in Morocco

• Employees are entitled to paid annual leave after six months of continuous service with the same employer at the rate of 1.5 days’ leave for each month of service. 
• After one year of service, employees are generally entitled to 24 days of paid annual leave.
• Employees under 18 years of age are entitled to two days’ leave for each month of service.
• After five years of service with an employer, a worker’s annual leave increases by 1.5 days a year up to a maximum of 30 days.

Holidays in Morocco

Maternity Leave Morocco

• Morocco offers 14 weeks of maternity leave at 100% of a woman's wages, payable from a national social security fund.
• A pregnant woman is also entitled to an additional year of unpaid leave if so desired.

Paternity Leave Morocco

• Fathers are entitled to 3 days of paternity leave at full pay

Sick Leave in Morocco

• Employees are generally eligible for sick leave if they have 54 days of contributions in the prior six months of coverage. 
• Sick pay begins on the 4th day and is usually about two-thirds of the average daily wage.

Working Hours in Morocco

• The standard work week in Morocco is 44 hours a week, or eight hours a day, Mondays to Fridays.

Overtime in Morocco

• The Labor Code permits overtime work if the company performs tasks that are deemed in the national interest or experiences an exceptional increase in its volume of work. 
• Workers in non-agricultural activities receive a premium of 25 percent for extra hours worked between 6:00 a.m. and 9:00 p.m., 50 percent for hours worked between 9:00 p.m. and 6:00 a.m.
• These premiums are raised to 50 percent and 100 percent for overtime hours worked on a rest day. 
• Workers must be compensated for 100 percent of their wage for work on paid holidays and leave days.

Termination of Employment in Morocco

• The Moroccan Labor Code prohibits the dismissal of an employee without a valid reason, either related to the employee’s aptitude or behavior (a dismissal for personal reasons) or related to the operational needs of the company (dismissal for technological, structural or economic reasons).
• The dismissal for personal reasons is justified either by the incapacity of the employee to occupy his/her position or by disciplinary reasons.

• If the employee commits:
  
  • a serious misconduct: the dismissal is immediate;
  • a non-serious misconduct: the dismissal occurs only after the employer’s recourse to all the disciplinary sanctions against the employee during one year.
• The employment contract of one or more employees may be terminated by the employer for reasons unrelated to the employee’s person, i.e. dismissal for structural, technical or economic reasons (Economic Dismissal).
• In the event of an Economic Dismissal, the dismissed employee is entitled to severance pay and notice compensation and benefits from a hiring priority during a year.

Severance in Morocco

• On termination, employees are generally eligible for a severance payment based on their length of service and hours of pay. 
• Severance pay is due after 6 months of service
• It corresponds to a number of hours per year that varies according to the length of service:
  
  • 96 hours pay per year for the first 5 years
  • 144 hours per year between the 6th and the 10th year
  • 92 hours per year between the 11th and the 15th year
  • 240 hours after the 15th year.

Morocco Salary and Wages

13th / 14th Month Salary in Morocco

• No
• There is no statutory requirement to pay the 13th or 14th month salary, however, employees much pay seniority bonus equating to: 5% of salary after two years’ service; 10% after five years; 15% after 12 years and 20% after 20 years.

• Social security contributions, which are withheld by the employer, are based on gross compensation paid, including fringe benefits and bonuses. 
• Employer contributions are paid, and employee contributions are withheld and paid, monthly. 
• The only mandatory social security regime in Morocco is the one managed by the Caisse Nationale de Sécurité Sociale (CNSS) fund.
• Other private social security organisms are available in Morocco but are not mandatory.
• Employees must contribute to the social security regime managed by the CNSS.
• The CNSS rates are as follows and apply to the gross salary, excluding exempted allowances and indemnities:

Immigration Morocco

• Foreign nationals are authorized to work in Morocco if they fulfill the following conditions: 
  
  • Expatriated to Morocco: 
    • They must enter into a work contract signed by an entity established in Morocco (either a Moroccan company or a fixed place of business of a foreign company). 
    • They must obtain the prior approval of the Anapec (a government agency) and the Ministry of Employment in Morocco. 
  • Seconded by the foreign parent company to its Moroccan subsidiary or branch: 
    • They are still employees of the foreign company and require only the approval of the Ministry of Employment. 
• Expatriates may be self-employed if they set up independent companies or businesses in Morocco. 
• Expatriates must have valid work permits and residence permits to be self-employed. 
• The minimum amount of capital required depends on the type of business or company that a foreign national intends to start. 
• For example, a limited liability company requires no minimum share capital.

Residence Permits

• After entering Morocco on a temporary visa such as tourist visa or business visa, foreigners can obtain a work permit and a registration card (residence permit).
  
  • Residence permits are issued to foreign nationals for 1 to 10 years and may be renewed an indefinite number of times. 
  • The renewed permit is valid for 1 to 10 years. 
  • To obtain a residence permit, a foreign national should file his application in person before the police authorities. 
• The foreign national should submit several documents before the police authorities such as a copy of the stamped work permit issued by the Ministry of Employment and a lease agreement

Value Added Tax (VAT) in Morocco

• Morocco's general VAT rate is 20%, with other rates including 14%, 10% and 7% that can apply to certain transactions. 
• The Value-added tax (VAT) is administered by the Ministry of Finance in Rabat.
• Visitors to Morocco can qualify for a VAT refund on all purchases made for export

Mandatory Benefits in Morocco

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payments And Invoicing

• The tax year in Morocco for individuals is the calendar year. Moroccan residents must file annual general income tax returns before the following dates:
  
  • 1 March following the end of the tax year (28 February or 29 February at the latest) for individuals who have professional income taxed under the fixed-taxation system (see Section A), and/or income other than professional income
  • 1 May following the end of the tax year (30 April at the latest) for individuals who have professional income taxed under the real or simplified regimes and for individuals who have received investment income (dividends or interest). The related tax due, if any, is payable at the time of the filing. 
  • 1 April following the end of the tax year (31 March at the latest) for individuals receiving dividends and interest from abroad and/or realizing capital gains on the sale of securities from foreign sources. The related tax due, if any, is payable at the time of the filing. 
• The tax return indicates separately the various categories of income. 
• If a taxpayer receives no income other than exempted agricultural income or employment income paid by one employer domiciled or established in Morocco, he or she is not required to file a return. 
• Tax on employment income must be withheld by employers domiciled or established in Morocco.
• Except for the cases listed above, income tax is computed by the tax administration and is payable on receipt of a tax assessment notice. 
• Taxpayers subject only to discharge rates are exempt from the requirement to file an annual general income tax return.

Payroll Accrual in Morocco

Country Accruals Additional Information

Description

Payroll Accruals Additional Information

Accrued Benefits in Morocco

Why use Global Expansion to hire in Morocco

Establishing a branch office or subsidiary in Morocco can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Morocco labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Morocco law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Morocco. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Morocco Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.