Morocco Labor Law Guide for Hiring Employees and Contractors
Morocco, with a diversified economy, recorded a GDP of approximately $135 billion for the year 2023.
Key sectors driving the Moroccan economy include agriculture, mining, manufacturing, tourism, and services. Agriculture remains a significant contributor, employing a large portion of the population and contributing substantially to the country’s GDP.
The manufacturing sector, especially automotive and aerospace industries, has seen substantial growth in recent years. Tourism continues to be a vital sector, attracting millions of visitors annually.
The country’s currency is the Moroccan Dirham (MAD).
Minimum Wage
MAD 4,000 per month
Overtime Wage
1.25 times the regular hourly rate
Meal Breaks
30 minutes to 1 hour
Rest Breaks
15 minutes
Working hours
8 hours per day, 44 hours per week
Salary Payment Cycle
Monthly
Payroll Taxes
CNSS, AMO, CIMR
Paid Vacation
18 days
Overtime Hours
More than 44 hours per week
Night Shift Hours
1.25 times the regular hourly rate
Holidays
11
No Work Days
Saturday, Sunday
Businesses in Morocco must establish a legal presence in the country to hire employees. This can be done by setting up a branch office, a subsidiary, or a representative office. The process of registering a company in Morocco typically takes around 30 days and involves various fees, including those for notary services, registration with the Moroccan trade register, and other administrative costs.
Employment contracts in Morocco must be in writing and should outline the terms of employment, including job description, salary, working hours, leave entitlements, and conditions for termination.
Contracts should also include clauses on confidentiality, non-compete agreements, and dispute resolution mechanisms. Moroccan labor law distinguishes between employees and contractors, with employees receiving more comprehensive benefits and protections under the law.
Morocco has a statutory minimum wage, which as of 2024, is set at MAD 4,000 per month for workers in urban areas. The minimum wage applies to all employees, except for certain agricultural workers who may have a different rate.
The minimum wage is calculated on a monthly basis, and there are no regional variations in the minimum wage rate within Morocco. Employers are required to pay their employees during public holidays, and there is no additional holiday pay mandated beyond the standard wage.
The standard working hours in Morocco are set at 8 hours per day and 44 hours per week. Any work beyond these hours qualifies as overtime and must be compensated at 1.25 times the regular hourly rate. Night shift work, which typically occurs between 9 p.m. and 6 a.m., is compensated at 1.25 times the regular hourly rate.
The minimum legal age for employment in Morocco is 15 years, and the country has strict laws prohibiting child labor, especially in hazardous work environments.
Employers in Morocco are required to make several payroll deductions, including:
CNSS (Caisse Nationale de Sécurité Sociale): Contributions to the national social security system, covering pensions, family benefits, and health insurance.
AMO (Assurance Maladie Obligatoire): A mandatory health insurance contribution.
CIMR (Caisse Interprofessionnelle Marocaine de Retraite): Optional but common retirement pension fund contributions.
The income tax rates in Morocco are progressive and are as follows:
Income Level (MAD) | Applicable Tax Rate |
Up to 30,000 | Exempt |
30,001 to 50,000 | 10% |
50,001 to 60,000 | 20% |
60,001 to 80,000 | 30% |
80,001 to 180,000 | 34% |
Above 180,000 | 38% |
Employees in Morocco are entitled to various types of statutory leave, including:
Paid Vacation: 18 days of paid leave annually after one year of service.
Maternity Leave: 14 weeks of paid leave, with the possibility of an additional unpaid leave.
Paternity Leave: 3 days of paid leave.
Sick Leave: Employees are entitled to sick leave, with full pay for up to 26 weeks, provided a medical certificate is presented.
Adoption Leave: Not explicitly mandated, but can be negotiated within the employment contract.
Mandated public holidays in Morocco are:
Holiday Name | Date |
New Year’s Day | January 1 |
Independence Manifesto Day | January 11 |
Labor Day | May 1 |
Throne Day | July 30 |
Revolution Day | August 20 |
Youth Day | August 21 |
Green March Day | November 6 |
Independence Day | November 18 |
Eid al-Fitr (End of Ramadan) | Varies (Islamic Calendar) |
Eid al-Adha (Feast of Sacrifice) | Varies (Islamic Calendar) |
Mawlid al-Nabi (Prophet’s Birthday) | Varies (Islamic Calendar) |
Employers in Morocco are required to provide several benefits, including:
Social Security: Contributions to the CNSS, covering retirement, health insurance, and family allowances.
Healthcare Benefits: Through mandatory AMO contributions, employees receive healthcare benefits.
Gratuity: Provided upon retirement or in cases of long-term service, as stipulated by Moroccan labor law.
Annual Bonuses: While not legally mandated, annual bonuses are commonly practiced in many industries.
Severance Pay: Mandated in cases of redundancy or unfair dismissal, calculated based on years of service.
Morocco does not follow At-Will Employment laws. Termination of employment must be justified and can only be carried out for legitimate reasons, such as misconduct, poor performance, or economic redundancy. Employers are required to provide notice periods, typically one month, unless the employment contract stipulates otherwise. Termination benefits, including severance pay, are mandatory in cases of redundancy or unfair dismissal.
Employees who feel they have been unfairly dismissed can challenge the termination in Moroccan labor courts. The process involves mediation or legal proceedings to resolve disputes. Legal termination must comply with the procedures outlined in the Moroccan Labor Code, ensuring that employees’ rights are respected throughout the process.