Basic Facts

Morocco is a North African country that borders Algeria to the east and southeast, Western Sahara to the south, the Atlantic Ocean to the west, and the Mediterranean Sea to the north. It is the only African country with coastal exposure to both the Atlantic Ocean and the Mediterranean Sea. At 710,850 square kilometers of land area, Morocco, excluding Western Sahara, is the 57th largest country in the world. The major resources of the Moroccan economy are agriculture, phosphate minerals, and tourism. Industry and mining contribute about one-third of the annual GDP.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Morocco.

Capital :
Rabat
Currency :
Moroccan dirham (DH, MAD)
Languages spoken :
Arabic, Standard Moroccan Berber
Population :
37.34 million (2021 est.)
Minimum wage 2023 :
MAD 2970.05
Cost of Living index :
$ (110 of 139 countries)
Payroll Frequency :
Monthly
VAT - standard rate :
20%
GDP - real growth rate :
7.4% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2024.

Date
Holiday Name
Extra Information
January 11
Independence Manifesto Day
April 10
Eid al-Fitr
Movable - As per Islamic Lunar Calendar
May 1
Labor Day
June 17
Eid al-Adha
Movable - As per Islamic Lunar Calendar
July 8
Islamic New Year
Movable - As per Islamic Lunar Calendar
July 30
Throne Day
Movable
August 14
Oued Ed-Dahab Day
Movable
August 20
Revolution Day
Movable
August 21
Youth Day
Movable
September 16
Prophet Muhammad's Birthday
Movable - As per Islamic Lunar Calendar
November 6
Green March Day
November 18
Independence Day

Contract Sharing Time


The approximate time for sharing the contract with an employee in Morocco is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • A fine of MAD 300 to MAD 500 is applicable in the event of payment of a salary below the minimum wage or failure to pay the prescribed seniority bonuses.
  • The late payment of social security contributions attracts penalties of up to 3% of the social tax bill.
  • Employees are entitled to a seniority bonus after serving for a certain number of years with the same employer.

Labor Conditions


Working Hours

In non-agricultural activities, the normal working time of employees is set at 2288 hours per year or 44 hours per week.

The overall annual working time may be spread over the year according to the needs of the company provided that the normal working time does not exceed 10 hours per day.

Overtime

In companies where 2288 hours of work are distributed unequally over the year, the hours worked daily from the tenth hour inclusive are considered overtime. The hours worked annually from the 2289 hours inclusive are also considered overtime.

Overtime gives rise to a salary increase of 25% if it is carried out between 6 am and 9 pm and 50% if the overtime is carried out between 9 pm and 6 am.

Probation Period

The probation period for open-ended contracts is set according to the following guidelines.

 

Designation Probation Period
Executives and similar positions 3 months
Employees 1.5 months
Workers 15 days

 

Termination Notice Period

For executives and similar employees:

 

Length of Service Notice Period
Less than 1 year 1 month
Between 1 and 5 years 2 months
More than 5 years 3 months

 

For non-executive employees:

 

Length of Service Notice Period
Less than 1 year 8 days
Between 1 and 5 years 1 month
More than 5 years 2 months

Leave / Time Off

Annual Leave

All employees are entitled, after six months of continuous service in the same company or with the same employer, to paid annual leave of which the duration is set as follows:

  • One and a half days of actual work per month of service;
  • Two days of actual work per month of service for employees under the age of 18.

This entitlement is increased by one and a half calendar days for every five years of employment completed by the employee subject to a maximum of 30 calendar days.

Sick Leave

Any employee who cannot work due to illness or an accident must inform the employer within 48 hours. If the absence extends for more than four days, the employee must notify the employer of the probable duration of the absence and provide a medical certificate justifying it. 

Sick leave benefits are paid for by the National Social Security Fund. Sick pay is granted from the fourth day and is usually about two-thirds of the average daily wage.

Parental Leave

Maternity Leave

An employee who is pregnant is entitled to a maternity leave of 14 weeks attested by a medical certificate unless more favorable stipulations are provided in the employment contract, the collective labor agreement, or the internal regulations. 

The employee has the right to suspend the employment contract for a period that begins seven weeks before the presumed date of childbirth and ends seven weeks after the date thereof.

In order to bring up her child, the employed mother may, in agreement with her employer, benefit from an unpaid leave of one year. Maternity leave pay is funded by the Social Security System.

Paternity Leave

Working fathers are entitled to three days’ paid leave on the birth of a child. These three days need not be continuous but must be taken within one month after the date of birth. 

The employer pays paternity leave pay equivalent to the remuneration the employee would have received on a normal working day but is reimbursed by the National Social Security Fund.

Other Types of Paid Leave

Reason for Leave Leave Duration
Employee’s marriage 4 days, including 2 days’ paid leave
Marriage of an employee’s child or stepchild 2 days leave
Death of an employee’s spouse, child, grandchild, parent, or stepchild 3 days of leave, including 1 day of paid leave
Death of an employee’s sibling or a sibling or parent of the employee’s spouse 2 days leave
Circumcision of a child 2 days leave
A spouse or dependent child’s surgery 2 days leave

Unpaid Leave

Union Representative Leave

Employers must grant their employees, members of municipal councils, leave of absence to attend the general assemblies of these councils, and the meetings of the committees which report to them if they are members. Unless otherwise agreed, the absence is not paid.

Leave of Absence

The employee benefits from one unpaid leave of absence to take an exam, carry out a national sports course, or participate in an official international or national competition.

Statutory Benefits

The Moroccan system of social protection, Caisse Nationale de Securite Sociale (CNSS) is characterized by a multiplicity of actors and management bodies and various legislative and regulatory texts.

The system covers the following services:

  • Compulsory health insurance;
  • Retirement, disability, and survivors’ pensions;
  • Compensation for loss of employment;
  • Family allowance;
  • Daily sickness/maternity;
  • Death allowance.

An overview of employer contributions toward social security is presented below.

Benefit Employer Contribution
Family benefits 6.4%
Short-term social benefits 1.05%
Long-term social benefits 7.93%
Compulsory health insurance 4.11%
Vocational training tax 1.6%
Social solidarity tax 1.5% -3.5%

 

 

Health Insurance

Employers are mandated to pay 4.11% towards Health Insurance.

The National Social Security Fund administers compulsory health insurance (AMO) for employees and pensioners in the private sector. Membership is mandatory for companies that are subject to the social security scheme and do not have any medical coverage system on the date of entry into force of the Compulsory Health Insurance.

Other Insurances

Accident Insurance

The financing of the Work Accident (WA) plan is carried out by means of:

  • Annual premiums are collected by insurance and reinsurance companies for the WA compensation regime for employees of the private sector, temporary, occasional, and daily employees of local authorities, and employers of public establishments. These insurance premiums are borne exclusively by employers (insurance policies);
  • A budget included in the operating budget of the Minister of Employment and Social Affairs for the compensation regime for WA of temporary, casual, and daily agents of the State;
  • The contribution of uninsured employers from the pension funds payable to the national pension and insurance fund.

 

Unemployment Insurance

The CNSS provides an employee who involuntarily loses their job, and is actively looking for a new job, with a minimum income called Compensation for Loss of Employment (Indemnité pour Perte d’Emploi-IPE), for a period of up to six months. This allowance is one of the mechanisms implemented to support the beneficiary to re-enter the labor market.

CNSS funds compensation for loss of income.

Public Pension

The Public Pension is funded under Long-term Social Benefits. Employers are mandated to contribute 7.93% towards Long-term Benefits.

The old-age pension (retirement) is a monthly benefit that is granted to the insured person who has reached the statutory retirement age.

It is made available to people who have:

  • Reached the age of 60 (or 55 for minors who justify having worked underground for at least five years);
  • Ceased all salaried activity;
  • Contributed for at least 3240 days.

Other Statutory Benefits

Family Benefits

The financing of Family Benefits is the sole responsibility of the employer and they pay 6.4% of the gross wage.

Family allowances are benefits based on the principle of social assistance. The beneficiaries are:

  • Employees carrying out an activity subject to the social security scheme and domiciled in Morocco;
  • Pensioners with children born no later than 300 days after the effective date of the pension.
Vocational Training

The vocational training tax was created for the benefit of the Vocational Training and Labor Promotion in Morocco.

Employers are mandated to pay 1.6% of the gross monthly remuneration received by each employee towards Vocational Training Tax.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.