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Your Guide to Hiring Employees and Contractors in Morocco

Capital city

Rabat

Currency

Moroccan Dirham (MAD)

Language(s)

Arabic

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

20.71% to 25.71%

Payroll

Payroll Cycle

The payroll frequency is generally monthly.  Work is typically paid on the last day of the month.

Minimum Wage Requirements

Morocco’s minimum wage is set for

Government employees 3,000 MADs ($336.98) per month  

Private-sector employees 2,570.86 MADs ($288) per month 

Agricultural workers 69.73 ($7.83) MADs per day

Individual Income Tax

Between MAD 30,001 – 50,000

Tax rate: 10%

Between MAD 50,001 – 60,000 ($5616 – $6739)

Tax rate: 20%

Between MAD 60,001 – 80,000 ($6739 – $8,986)

Tax rate: 30%

Between MAD 80,001 – 180,000 ($8,986 – $20,219)

Tax rate: 34%

Beyond 180,000 MAD ($20,219)

Tax rate: 38%

Employer Cost:

The employer cost is generally estimated at 17.50% of the employee salary.

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, i.e., $561k – $4.5 million)

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

Employees can work a maximum of 138 hours over four months and 250 hours a year. For additional hours, employees are paid:

  • 125% of the hourly rate for overtime undertaken between 6:00-21:00
  • 150% of the hourly rate for overtime undertaken between 21:00-6:00
  • 200% of the hourly rate for overtime undertaken on weekends and public holidays.

Employment Termination

Fixed term contracts can be terminated for the following reasons – business, personal, or worker’s misconduct. 

  • It requires notice and a written explanation for the termination.
  • If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain actions.

Notice period

The notice period is dependent on the function of the employee and the length of service.

Executives and similar positions

Less than 1 year

1 month

1 to 5 years

2 months

More than 5 years

3 months

Employees

Less than 1 year

8 days

1 to 5 years

1 month

More than 5 years

2 months

Probation periods

Moroccan employment specifies a 1-week trial period for all employees, and in addition:

  • 3 months of probation for executive staff, and
  • 6 weeks of probation for non-executive staff

If performance during probation is unsatisfactory, the trial period can be repeated once at most.

These details are subject to change by the respective government and regulatory authorities in each country.

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