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.