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Morocco – Employer of Record

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Country Introduction – Morocco

Capital –  Rabat
Currency –  Moroccan Dirham (MAD)
Population –  36.91 Million
GDP –  $112.9 Billion USD
Languages –  French and Arabic
Major Religions –  Islam

Morocco, lies directly across the Strait of Gibraltar from Spain. It is the only African country with coastal exposure to both the Atlantic Ocean and the Mediterranean Sea. Morocco’s largest city and major Atlantic Ocean port is Casablanca, an industrial and commercial centre. The capital, Rabat, lies a short distance to the north on the Atlantic coast. Other port cities include Tangier, on the Strait of Gibraltar

One of the most beautiful cities in Morocco, and also one of the most popular among tourists, is the blue city of Chefchaouen. Chefchaouen is known as the Blue Pearl of Morocco because the entire medina and a large portion of the mountain village is painted pale blue.

Morocco is one of only three kingdoms left on the continent of Africa—the others, Lesotho and Swaziland, are small, southern African countries.

Contract of Employment

All employment contracts in Morocco must be agreed in writing, the contract must be in French or Arabic. The employment contract must state all the terms of employment along with all the benefits the employee will receive. The employment contract must also outline all terms for ending employment by both parties.

Probation Period

Probation period differs depending on the employees position for non-managerial employees the probation period is 45 days. For employees holding managerial roles the probation period is up to a maximum of 3 months.


The notice period is usually agreed in the employment agreement. For less than 1 year of employment the notice period is 8 days. For 1 to 5 years of employment the notice period is 1 month and for over 5 years of employment the notice period increases to 2 months.

Working Hours

44 hours per week. Monday to Friday.


All hours worked over 44 hours per week are considered overtime hours. All overtime must be agreed in advance of the requirement. Overtime must not exceed 138 hours over a four-month period and 250 hours per year. Overtime is generally paid at 1.25x the normal salary rate.

Annual Leave

Annual leave is 18 days per year. The employee is entitled to annual leave after 6 continuous months of work after which annual leave is accrued at 1.5 days per month.

Sick leave

An employee is entitled to 4 days of paid sick leave. If the absence will last longer than 4 days then the employs must provide a medical certificate and advise of the probable date of return.

Maternity Leave

Female employees are entitled to 14 weeks of paid maternity leave. 7 week prior to the birth and 7 weeks after the birth. Maternity leave is paid at the same rate as the salary by the employer.

Paternity leave is 3 days of paid leave during the first month of the child’s birth.


The VAT rate in Morocco is 20%.

Income Tax

Income tax in Morocco works on a sliding scale based on annual salary, ranging from 0% to 38%.

0% – 0 to 30,000 MAD
10% – 30,001 to 50,000 MAD
20% – 50,001 to 60,000 MAD
30% – 60,001 to 80,000 MAD
34% – 80,001 to 180,000 MAD
38% – 180,001+ MAD

Employer/Employee Contributions

Total employer contributions in Morocco ranges from 14.69% to 18.19%.

Short Term Social Benefits –  1.05%
Long Term Social benefits –  7.93%
Health Insurance –  4.11%
Professional Training Tax –  1.60%
Social Solidarity –  2.50% (for companies with net profit between 5M and 40M MAD).
Social Solidarity –  3.50% (for companies with net profit over 40M MAD).

Total employee contributions in Morocco ranges from 6.74% to 8.24%.

Short Term Social Benefits –  0.52%
Long Term Social benefits –  3.96%
Health Insurance –  2.26%
Social Solidarity –  1.50% (for employees earning over 120,000 MAD).

Public Holidays

There are 12 paid public holidays in Morocco.

Severance Pay

Severance pay is 96 hours of salary for every year of employment. After 5 years of employment the severance pay increases to 144 hours of pay.

Work and Residence Permits (Expatriates)

All foreigners are required to apply for a work permit before being allowed to work in Morocco. ANAPEC is the local government agency that all requests must be made to with the following supporting documents:

–  Passport copies
–  Passport sized photographs
–  Legalised local employment contract
–  Attested degree copies
–  Application form along with company stamps.

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