Labor Law of Morocco

Morocco’s labor law is the primary legislation governing employment relations. 

Working Hours in Morocco

• The mandated working hours in Morocco are 44 hours a week. Employees are limited to a maximum of 10 hours per day.
• Employers must compensate for work on public holidays with a regular day’s salary in addition to holiday pay.

Overtime Pay

Probation Period in Morocco

Dismissal of Employees 

• During probation, both parties (employer or employee) can terminate the contract by respecting a notice period of eight days.
• The notice period varies depending on the employment years.

Payroll and Taxes in Morocco

Payroll in Morocco involves calculating salaries, passing on paid leave benefits, withholding tax dues, deducting social security contributions, and reporting them directly to the authorities. Here is an overview of the payroll process in Morocco: 

Minimum wage:

• The current minimum wage in Morocco depends on the different sectors:

13th-month pay:

• It is not mandatory to pay the 13th month in Morocco. However, employers offer a productivity bonus or 13th-month pay at the end of the year.

Tax deductions & social security contributions: 

• Employers in Morocco must withhold taxes after applying deductions on the employee income on a progressive basis (tax slabs: 10%, 20%, 30%, 34%, and 38%)  

• Employers must transfer social security contributions deducted from employees’ gross salary and their contributions to the Caisse Nationale de Sécurité Sociale (CNSS) fund.  

Payroll frequency: 

• Payroll frequency in Morocco is usually monthly. It is usually made on the 25th of every month.

Adhering to Moroccan regulations concerning the payroll process can be resource-draining. Skuad can instantly manage your payroll in Morocco with just the click of a button! 

Public Holiday 

Employers in Morocco must grant twelve days of paid holidays for 

Religious Holidays (dates are indicative)

Civil Holidays

Leave Benefits in Morocco

Employers must follow the statutory leave policy in Morocco to extend the same to their employees: 

Maternity leave: 

• The paid maternity leave in Morocco lasts for 14 weeks, seven weeks before and the remaining seven after the birth. 
• To be eligible, the employee must have served at least a year with the same employer and contributed to the National Social Security Fund (CNSS). 
• Maternity benefits are disbursed in two installments, the first 15 days before the expected childbirth and the second 15 days after the birth. 
• Employees are entitled to two paid 30-minute breaks for breastfeeding, one in the morning and one in the afternoon.

Paternity leave: 

• Employers must award three days of paid paternity leave in Morocco after the birth. 
• Employers can claim reimbursements from CNSS funds for pay benefits extended during this period. 

Sick leave: 

• Usually, the sick leave in Morocco is four days per year. 
• For leave extending four days, employees have to provide a medical certificate.
• Sick leave is managed by the National Social Security Fund (CNSS).
• Employees need at least 54 days of social security contributions in the six months before illness, except for non-occupational accidents.
• During sick leave, the employer pays the equivalent of the regular daily wages, later reimbursed.
• Employers may dismiss an employee on sick leave for more than 180 days in a year. 

Annual leave:

• Employers in Morocco must provide at least 18 days of paid annual leave every year. This is equivalent to 1.5 days’ actual work per month of service. 
• After six months with the same employer, employees accrue 18 days of paid annual leave (or 2 days per month for those under 18).

Marriage leave:

• Employees get four days of paid marriage leave. 
• Two days of paid marriage leave for the employee's offspring's wedding.

Bereavement leave:

• For the death of a spouse, child, grandchild, or ascendant, the statutory minimum is 3 days of paid leave. 
• In the case of an employee's brother, sister, spouse's brother or sister, or spouse's ascendant, the statutory minimum is 2 days of unpaid leave. 

Other leave:

• Circumcision Leave: Statutory minimum of 2 days of unpaid leave.
• Surgery on Spouse or Dependent Child Leave: Statutory minimum of 2 days of unpaid leave.

Carry forward of leave:

• Employees in Morocco can carry forward unused annual leave to the following year.
• A maximum of 15 days can be carried forward to next year.

Cost of Hiring an Employee in Morocco

The cost of hiring in Morocco varies based on whether you establish a legal entity or use Employer of Record (EOR) services. Let us compare the utility associated with both approaches:

Forming a Subsidiary vs. Partnering with EOR company in Morocco

Compliance Risks of Hiring Employees in Morocco

You must be aware of the following compliance risks involved while hiring employees in Morocco:

• Employee misclassification: Moroccan law strictly regulates the employment of foreign nationals. Failure to notify the National Agency for the Promotion of Employment and Skills (ANAPEC) of the native skill gap prior to hiring foreigners may result in penalties.

• Hiring foreign employees: Employers must arrange appropriate work permits for hiring foreign nationals in Morocco. Additionally, employers must obtain labor authority authorization from the Ministry of Labor along with work visas in Morocco. However, to hire employees in Morocco from Algeria, Senegal, and Tunisia does not require any labor authority authorization. Following these procedures can be resource-draining. 

• Contract obligations: Moroccan labor law requires written employment contracts for all employees, typically a fixed-term contract for hiring foreigners in Morocco. The contract should include terms and conditions, such as salary, working hours, benefits, and termination clauses. Failing to provide a written employment contract or including incomplete information may lead to legal consequences.

How to Hire Talent in Morocco

When looking to hire employees in Morocco, you can rely on internal resources or partner with a licensed agency for local recruitment. You may do it in the following ways: 

Option 1: Set up a Subsidiary 

• Establish a subsidiary in Morocco for hiring resident or non-resident employees. 
• This approach may suit multinational corporations making substantial investments in Morocco, offering direct oversight of daily employee operations. 
• Initiating a local business entity involves significant setup costs. Moreover, employment liability is potentially transferred to the parent company.

Option 2: Hire Independent Contractors

• Global employers may engage local or foreign individuals, including freelancers and remote workers, through project-based contractual arrangements. 
• However, hiring independent contractors may limit operational abilities as it can translate to less control over employees' daily activities. 

Option 3: Subscribe to EOR Services

• Global companies are increasingly opting for EOR solutions to mitigate the compliance risks and cost of hiring in Morocco. 
• An EOR service provider such as Skuad takes care of compliance while hiring employees, without companies needing to form a subsidiary in Morocco. 
• Skuad is the legal employer to hire employees in Morocco. It manages payroll, minimizes compliance risks, and all your HR-related admin tasks.

Top Job Listing Sites in Morocco

Skuad is a well-established Employer of Record (EOR) that can help simplify your hiring process in Morocco. We streamline payroll, ensure tax compliance, and facilitate seamless employee onboarding, all while adhering to Moroccan labor laws.

Here are some noteworthy job listing websites in the country:

• Bayt.com: Leading job-seeking website in the MENA region
• MarocAnnonces.com: The most popular job board in Morocco
• Rekrute.com: Specializes in high- and mid-level positions
• Alwadifa-Maroc: It caters to a diverse range of industries
• Tanitjobs: Allows employers to reach a broad audience
• Jobrapido: A global job search engine with a strong presence in Morocco

Global employers can narrow down on suitable job platforms depending on industry specificity, free job postings, the capability to search for candidates based on location, experience, and skills, as well as the capability to showcase company profiles when seeking to hire in Morocco.

Hiring Trends in Morocco in 2024

The number of active job listings in Morocco has risen 8.4% each month since March 2023, with a cumulative increase of 2.4%. 

Nearly one-third of employers hire employees in Morocco with a good command of Arabic, French, and English. The emphasis on trilingual proficiency reflects the multilingual nature of Moroccan business and communication. Several companies continue to look for low-cost yet talented labor by offering internships. Some 77% of the firms “always or sometimes” hire interns as full-time employees. 

Simplify Hiring in Morocco Using Skuad

Whether you are a multinational corporation looking to establish a presence in the MENA region or a local startup seeking to expand your team, Morocco is among the best countries to consider. 

At the same time, Skuad offers a streamlined solution for onboarding and paying team members in Morocco. Skuad enables you to hire and manage payroll for your talent in Morocco, compliantly.

Book a demo with Skuad now to enhance the efficiency of your hiring processes in Morocco.

FAQs  

Q1. What are the types of employment contracts in Morocco?

A1. The labor law prescribes three types of employment contracts for hiring in Morocco. The first is an Indefinite-term contract (CDI) that grants maximum employee benefits per Moroccan labor laws. Next is a Fixed-term contract (CDD) that is for a specific time (renewed every year or two) to generally hire foreigners. The last one is a Job completion contract (CPO) that is valid until a specific task or project is completed. 

Q2. How much does it cost to hire international employees?

A2. The cost of hiring international employees in Morocco varies depending on the employee's nationality, job title, work experience, work permit, and visa costs. Further, employers must set employee salaries over the prescribed minimum wage of Moroccan Dirham 2,970 (private sector). 

Q3. How can a US employer hire a foreign employee?

A3. Any US employer can hire a foreign employee in Morocco by entering into a written employment contract in Morocco and submitting an application with the Moroccan Ministry of Labor for the necessary work permit. Based on this, the employer can ask the employee to apply for a work visa at the appropriate Moroccan embassy or consulate. Alternatively, you can partner with an EOR company like Skuad and ignore all other requirements to hire in Morocco.