Seeking A Reliable Payroll Partner in Morocco ?
With our Morocco Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Morocco’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Morocco Country Overview
Geographic location: Located in North Africa, the country of Morocco lies directly across the strait of Gibraltar, Spain.
Population: Morocco was previously a French colony, and this means that 36% of the population are Francophones (according to the Organisation Mondiale de la Francophonie), with 30% of English speakers with a high proficiency (according to the British Council).
Economy: The country is mainly driven by the tourism and service sectors, which account for almost half of the country’s gross domestic product (GDP) (49.14% according to Statista). Agriculture and industry also play an important role in Morocco’s economy.
Payroll in Morocco - What You Should Know
- 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)
Morocco Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
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Countries We Cover
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.
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