How to hire and pay employees in Morocco

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Morocco Facts and Stats

Currency

Moroccan Dirham is the official currency of Morocco. Its currency symbol is MAD.

Employer Costs

Estimated at 24.2% of employees salary.

Languages

Arabic is the official language of Morocco.

Population

The population of Moroccois 45.81 Million (based on World Bank numbers as of 2021).

Payroll frequency

Employees are paid monthly.

Hiring

Grow your team in Morocco

No entity, no problem

To start growing your team in Morocco, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Morocco

Pros and cons of hiring in country: Hiring employees in Morocco presents several benefits and challenges. On the positive side, labour costs are relatively low, making it cost-effective for businesses. The country has a young, dynamic workforce that is often multilingual, with many Moroccans proficient in Arabic, French, and increasingly English, facilitating communication in international contexts. Additionally, Morocco’s strategic location serves as a gateway to African and European markets. However, there are challenges such as navigating complex labour laws and bureaucratic processes, which can be time-consuming and require careful compliance to avoid legal issues.

Why Morocco is good for remote workers

Employers should consider hiring remotely in Morocco due to the combination of cost efficiency, access to a young and educated workforce, and robust language skills. Labor costs in Morocco are lower compared to many Western countries, allowing businesses to reduce expenses. The Moroccan workforce is young, skilled, and multilingual, facilitating excellent global communication. Additionally, Morocco has developed a strong remote work infrastructure with reliable internet and communication technologies, enabling efficient remote operations and making it a strategic choice for international companies looking to expand their remote teams.

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Employer Costs
Social Security (CNSS):20.1%.
Family allowances:6.40%.
Social security benefits:8.60%.
Professional training:1.60%.
Additional social coverage:3.50%.
Mandatory Health Insurance (AMO):4.1%.
Benefits

Mandatory Benefits

Social Security (CNSS).

Mandatory Health Insurance (AMO).

Employment

Probation

Probation Period: All employees face a one-week trial period. Beyond this, the probation period varies on the nature of the employment and the job title.

Emerald Technology can onboard employees in Morocco within 48 hours.

Restrictive Covenants

Non-Compete Clauses: Prevent employees from working with competitors or starting a competing business for a certain period after leaving the company. The enforceability of these clauses depends on their reasonableness in terms of duration, geographic scope, and the nature of the restricted activities.
Non-Solicitation Clauses: Prohibit former employees from soliciting the company’s clients, customers, or other employees for a specified period.
Confidentiality Agreements: Ensure that employees do not disclose or use the company’s proprietary information and trade secrets both during and after their employment.

Insurance
01.

Health Insurance:

Complementary health insurance is not legally required, but many companies offer it to enhance their employees’ health coverage.

02.

Social Security Contributions:


Social security (CNSS) is mandatory for all private sector employees. Employers must register their employees and pay contributions.

CNSS covers family benefits, mandatory health insurance (AMO), retirement pensions, and unemployment benefits.

Leave Policy
01.

Maternity Leave:

Female employees are entitled to 14 weeks (7 weeks either side of the birth) of maternity leave, where 100% of their salary will be paid by the employer.

02.

Paternity Leave:

 New fathers are entitled to 3 days paternity leave after the birth of their child. This must be taken within the first month of the birth which will be fully paid by the employer.

03.

Sickness Leave:

Employees must notify their employers within 48 hours if they are unable to work due to illness. If the absence exceeds 4 days, a medical certificate is required. Social security provides a benefit starting from the fourth day of absence, covering two-thirds of the employee’s normal wages for up to 185 days within a 365-day period, assuming the employee has made sufficient social security contributions. If the period of absence is beyond 180 days, the employer has the right to request the termination of the employment.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Morocco within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

The length of the notice period required is reflective of the employee’s length of service; less than a year requires 1 month, one to five years requires 2 months and beyond five years requires 3 months.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Severance: Employees dismissed without just cause are entitled to severance pay based on their length of service:
0-5 years: 96 hours of salary per year of service,
6-10 years: 144 hours of salary per year of service,
11-15 years: 192 hours of salary per year of service,
15+ years: 240 hours of salary per year of service.

Time off

Statutory Time off

Full-time employees in Morocco are entitled to 18 days of annual leave. The employee is entitled to paid leave after 6 months of continuous work.

Public Holidays

  • New Years Day,
  • Anniversary of Independence Manifesto,
  • EId Al-Fitr,
  • Labour Day,
  • Eid al-Adha,
  • Islamic New Year,
  • Throne Day,
  • Oued Ed-Dahab Day
  • Revolution Day,
  • Birthday of King Mohammed VI and Youth Day,
  • Mawlid,
  • Green March Day,
  • Independence Day of Morocco,
Emerald Technology can onboard employees in Morocco within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

MAD 3,000 per month.

02.

Working Time and Overtime:

The standard working week in Morocco is 44 hours, with a maximum of 10 hours per day.

Overtime hours are typically limited to 80 hours per year, and are compensated at different rates dependent on when it is completed:

  • 25% increase for overtime worked between 06:00-21:00,
  • 50% increase for overtime worked between 21:00-06:00,
  • 50% increase for overtime worked on a day of rest,
  • 100% increase for overtime worked on a recognised public holiday.
03.

Salary Payments:

Monthly.

04.

Bonuses in Morocco:

There is no legal obligation for employers in Morocco to provide any form of bonus, it is however commonplace for performance-based bonuses to foster motivation.

05.

Income Tax:

  • Up to 30,000: 0%,
  • 30,001 to 50,000: 10%,
  • 50,001 to 60,000: 20%,
  • 60,001 to 80,000: 30%,
  • 80,001 to 180,000: 34%,
  • Above 180,000: 38%.
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