Morocco Payroll Outsourcing

• Population: 37,344,787
  
• Gross Domestic Product (GDP): $132.73 B
• GDP Growth (April 2021): 7.4%
• Inflation, consumer prices: 1.4%
• Foreign Direct Investment (% of GDP): 1.2%
• Unemployment Rate: 11.5%
• Capital: Rabat
• Currency: Moroccan Dirham
  
• Languages: Moroccan Arabic, Berber, French, English, Spanish

Employer Contribution

• 6.00% of the employee’s emoluments must be contributed to family allowances
• 8.6% of the employee’s emoluments must be contributed to social security for death pensions and compensation for illness, disability, or maternity leave
• 1.6% must be contributed to the Moroccan Office of Staff Training
• 0.38% must be contributed to Loss of employment indemnity
• 4.11% must be contributed to medical insurance

Employee Contribution

• 4.29% of the employee’s emoluments must be contributed to social security for death pensions and compensation for illness, disability, or maternity leave
• 0.19% of the employee’s emoluments must be contributed to social security for Loss of employment indemnity
• 2.26% must be contributed to medical insurance

• Value-added tax (VAT)

  The standard VAT rate is 20% in Morocco. Reduced rates range from 0-14%.

Paid Time-Off

Employees are generally entitled to one and a half days of annual paid leave for each month of consecutive service with the same employer. This means that after a full year of service, an employee is entitled to 24 days of paid annual leave.

Employees under the age of 18 are entitled to 2 days of paid leave for each month of service.

After 5 years of service, a worker’s annual leave can increase to a maximum of 30 days.

Sick Leave

In Morocco, workers with less than 2 years of service are generally entitled to 6 months’ sick leave. Once they accumulate 2+ years of service, employers are entitled to 12 months’ sick leave.

Maternity Leave

In Morocco, women are entitled to a maximum of 14 weeks of paid maternity leave. Should they desire it, any employee is entitled to an additional year of unpaid leave to attend to their maternal duties.

Paternity Leave

In Morocco, men are entitled to 3 days of paid paternity leave at full pay.

According to Morocco’s Labour Code, an employee cannot be terminated without valid justification. This can either be related to the employee’s ability to work or their behavior. An employee can also be terminated should the company be faced with financial difficulties and have no other choice than to reduce its workforce (redundancy).

Employee termination can only be carried out on ‘personal grounds’ for the following reasons:

• Grave misconduct – in which case dismissal is immediate
• If the employee is unable to carry out their work due to illness

Severance pay in Morocco is generally regulated in proportion to the employee’s seniority and hours of pay.

• 96 hours pay per year for the first 5 years
• 144 hours per year between the 6th and the 10th year
• 92 hours per year between the 11th and the 15th year
• 240 hours after the 15th year.

• New Year’s Day (1st January)
• Anniversary of the Independence Manifesto (11th January)
• Labor Day (1st May)
• Eid al-Fitr
• Throne Day (30th July)
• Eid al-Adha
• Oued Ed-Dahab Day (14th August)
• Islamic New Year
• Revolution Day (20th August)
• Birthday of King Mohammed VI and Youth Day (21st August)
• Prophet’s Birthday
• Green March Day (6th November)
• Independence Day of Morocco (18th November)