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.
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.
Value-added tax (VAT)
The standard VAT rate is 20% in Morocco. Reduced rates range from 0-14%.
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.
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.
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.
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:
Severance pay in Morocco is generally regulated in proportion to the employee’s seniority and hours of pay.
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.