Mercans CountryIntel ® Morocco Payroll And HR Insights
Morocco has undergone significant social and economic progress over the last two decades, thanks to large public investments and reforms. Morocco has an ambitious energy transition plan to make it one of the greenest and lowest carbon platforms in the world. It is known as a strategic and competitive exporting hub, making it an attractive destination for foreign investment. Main sectors of the economy include natural resources, food processing and tourism but the emerging sectors include renewable energy, electronic assembly, automotive and off-shoring. There are four major axes supporting its growth plans: a productive and diversified economy, strengthened human capital, a consolidated social link and resilient territories.Download PDF
Morocco boosts its business-friendly environment with political stability, a resilient economy and various government incentives. Its GDP has tripled in the last 20 years with a stable inflation rate (ranked first among 141 countries in terms of inflation rate stability). Ranked the #1 most competitive country in North Africa (WEF), Morocco is particularly attractive for investors for over 50 non double taxation and investment protection agreements, no restrictions on capital and free repatriation of profits and capital for non-residents. There are also no general restrictions on commercial relations with any other country or jurisdiction.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Morocco is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.
Banking Hours: 8:15 am to 5:30 pm from Monday to Saturday
The standard working week is from Monday to Friday from 9:00 am - 5:00 pm
The primary provisions of Moroccan law governing labor are set out in the Labor Code and industry-wide collective bargaining agreements. These provisions also apply to Moroccan citizens working abroad if the employment contract is subject to Moroccan law except for the mandatory regulations of the country where the contract is executed and where the work is performed.
Textiles, leather goods, food processing, oil refining and electronic assembly
Dates & Numbers
Official State Name
The Kingdom of Morocco
International Dialing Code
The employer is required to make salary payments to the employee every month either via cash, cheque/money order/postal order or via electronic transfer.
It is acceptable to provide employees with online payslips
Payroll report must be kept for 5 years
Paid annual leave of 18 days
4 days of paid sick leave
14 weeks of paid maternity leave and 3 days of paid paternity leave
Maternity & Paternity Leave
1 month notice if the employee is employed for less than one year
No provisions mandated by law
13th month salary
Set at 3300 MAD per month for employees in the public sector and 2828.71 MAD per month for employees in the private sector
Overtime payment of 125% for work between 6:00 am and 9:00 pm
Employees receive a severance pay of 96 hours of salary if they’ve completed at least six months of service.
Individual income tax is governed by the General Tax Code. Social security law aims at guaranteeing employees pensions and cover against disability, medical expenses and/or harm incurred by the employee during their employment.
Residents pay tax on all global income whether received in Morocco or abroad. Non residents pay tax on all their Moroccan-related income. Both types of residents pay tax on income or profits that are taxable under the double taxation treaty. For foreign employees, tax residency is determined by the definition of tax residency in any applicable double tax treaty signed by Morocco and the foreign employee’s country. Tax resident companies are those registered in Morocco or that which are effectively managed in Morocco.
Corporate Income Tax
Personal Income Tax
Companies must complete their social security registration with CNSS (Caisse Nationale de Securite Sociale) and each employee must have a CNSS number. Additionally, the employer is required to take health insurance (AMO). The employer is obliged to declare their annual social solidarity contribution (SSC) under the SSC annual return form, by the end of February annually.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
Companies who operate a multi-country payroll must take note that, in Morocco, the employment agreement entered into with a foreign employee is the only document that is enforceable in Morocco in the event of litigation between employer and employee.
Generally, employment contracts must be in writing but can be entered into orally except where the contract is for a fixed term or part-time. Oral fixed-term or oral part-time contracts are categorically deemed to be indefinite-term contracts. Part-time employees can be hired for a maximum of six months (non-renewable). Employers must also provide the employee with a job card which must mention the name of the employer, the name of the employee, the employee’s position and their social security number.
Working hours per week are 44 hours with a maximum of 10 hours per day.
The minimum vacation allowed is 1.5 days per month (18 days per year).
There must always be a fair reason for a dismissal and the dismissal needs to be affected according to procedure and fairly. Moroccan courts are generally formulaic towards the enforcement of the Labor Code. As such, a dismissal is automatically unfair if it is not carried out for a fair reason and according to the right procedure. Two grounds on which termination might be legitimate without the notice period are serious misconduct and for four cumulative non-serious misconducts in one year. Redundancies are generally characterized by employees, labor authorities and the courts as termination with no cause. They generally proceed to full compensation of the terminated employees.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
Up to 3 days
Total number of days for Compassionate & Bereavement Leave
The hiring of foreign employees is governed by Law no. 02-03 dated 11 November 2003 and the employer is required to obtain authorization from the Ministry of Labor. Authorization is granted as a visa stamped on the employment contract entered into between employer and foreign employee.
Foreigners who wish to reside in Morocco must obtain a Registration Card or Residence Card which is treated as a residence permit.
Work Permit validity
Evidence of domicile or hotel reservation. If accommodation is provided by the employer, the employer must provide a certificate to confirm that they are picking up the housing costs
Copies of the applicant’s passport
Copies of the applicant’s diplomas and degrees
Two identification-size photos
Four passport-size photos taken within the previous six months
Passport (valid for at least 6 months from the date of exit of Morocco and with at least one blank page), with a photocopy of the relevant data pages
Fee (payable by postal order only)
Evidence of employment or bank statements
Photocopy of the flight ticket(s)
Completed application form
Copy of the invitation letter issued by the company the applicant is planning to work at
Copy of the applicant’s employment contract
The business letter from the employer
Evidence of work experience.
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