Currency, Moroccan Dirham

36.74 million


$259.42 billion


53rd ranked

Ease of Doing Business




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Benefits of hiring in 

Benefits of hiring in Morocco

Morocco is the fifth-largest economy in Africa and the third-largest in the northern regions of the continent. It’s the leading recipient of foreign direct investment from the Maghreb region in Africa.

Morocco has a strategic position in the world for international business. It opens the door to commerce entering the Mediterranean Sea and its surrounding countries. Likewise, it serves as a gateway to sub-Saharan Africa, as the Maghreb region facilitates entry for large corporations. At the same time, it is the only country in the region that serves as the main gateway to the Americas.

Morocco’s political system makes it a relevant business partner as its monarchy has implemented social and political reforms, resulting in economic stability that surrounding countries do not possess. The monarchy has succeeded in obtaining large amounts of direct foreign investments. Correspondingly, a number of well-known companies have established themselves in the region.

  • The country has significantly improved its infrastructure, especially its mobile phone market, which has increased internet access and the capacity and quality of its seaports. This all provides a strong foundation for international recognition of its increased economic openness.

Morocco has a strategic position in the world for international business.

Challenges of hiring in Morocco

Morocco’s economy continues to remain highly dependent on the performance of its agriculture sector. The country's economy is left vulnerable as climate and water availability become unsteady and undependable.

The country’s high unemployment rate persists, particularly among young people. Furthermore, women's participation rate is low in the labor market.

Morocco has notable regional disparities between urban and rural areas, with recurring discontent in certain communities. The poverty rate remains high due to these disparities.

Morocco’s economy continues to remain highly dependent on the performance of its agriculture sector.

Cultural nuances and must-knows of doing business in Morocco

While finding French-influenced business culture in Morocco, the country is still largely an Arabic-speaking Muslim country. Moroccan culture is a mixture of Arabic, Berber, Muslim, and French cultures. Accordingly, sage advice offers to practice cultural sensitivity.

Business meetings are usually formal, and colleagues dress as such. Meetings need to be scheduled so as not to coincide with prayer times.

Greeting Moroccan colleagues depends upon gender. Colleagues of the same gender may shake hands or gently kiss on the cheek. Colleagues from different genders may prefer not to touch; a smile and a light head nod are appreciated.

Business culture in Morocco is strongly hierarchical and depends on stratified relationships and professional rankings. Decision-making is centralized at the top of the hierarchy.

Building personal relationships with colleagues is necessary before collaborating and reaching a business agreement. Referrals from personal networks most often facilitate negotiations and business processes.

Building personal relationships with colleagues is necessary before collaborating and reaching a business agreement.

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Wages and Salaries in Morocco

  • Minimum wage and salaries in Morocco

    • Effective May 1, 2022, the Moroccan government has increased the minimum wage for both the public and private sectors. The minimum wages in Morocco are increased to MAD3,500 per month for the public sector and MAD2,902 per month for the private sector.
  • Probation period in Morocco

    • Probation periods in Morocco are dependent upon the type of employment contract.
    • For indefinite-term contracts:
      • The probation period is set to three months for executive positions.
      • The probation period is set to a month and a half for office employees.
      • The probation period is set to 15 days for on-site laborers.
      • The probation period can be renewed once.
    • For fixed-term contracts:
      • The probation period is set to one day per work week up to a maximum of two weeks if the contract’s duration is less than six months.
      • The probation period is set to one month if the contract’s duration is more than six months.
  • Bonus payment in Morocco

    • There are no legal requirements in Morocco regarding bonuses. However, it is common practice for employers to pay 13th-month bonuses or seniority bonuses to employees.
  • Onboarding in Morocco

    • In Morocco, a written employment agreement or contract is not mandatory by law. However, employers must provide employees with a job card that mentions the following:
      • Employer’s name
      • Employee’s name
      • Employee’s position
      • Employee’s social security number
    • Where there is a written employment contract, it’s advised that the signatures of the employer and employee be certified by the relevant authorities, such as the local municipality, otherwise, its validity can be legally challenged.
  • Termination and notice period in Morocco

    • In Morocco, termination and notice periods are dependent upon the type of employment contract.
    • Termination of a fixed-term employment contract is validated by a just cause of:
      • A serious breach of contract
      • Disciplinary measures
      • A force majeure event
    • Employees are entitled to a severance payment when termination of their fixed-term employment contract is not legitimized by just cause. This payment is equal to the wages otherwise payable to the employee until the contract’s expiration.
    • Termination of an indefinite-term employment contract, unless legitimized by just cause, must allow for a notice period or a payment in lieu of notice. The duration is one to three months for employment of less than five years.
    • Unless legitimized by just cause, termination of an indefinite-term contract by an employer gives the employee eligibility for a severance payment of:
      • 96 hours of wages for each year, or portion of a year, for the first five years of employment
      • 144 hours of salary for each year, or portion of a year, from the sixth to the tenth year of employment
      • 192 hours of salary for each year, or portion of a year, from the 11th to the 15th year of employment
      • 240 hours of salary for each year, or portion of a year, above 15 years of employment

Leave Entitlements in Morocco

  • Annual leave in Morocco

    • Under Article 231 of the Moroccon Labor Code, employees aged 18 and over are entitled to 1.5 days of paid leave per month up to 18 days of paid leave per year of service. Employees under the age of 18 are eligible for two days of paid leave per month up to 24 days of paid leave per year of service.
  • Parental and maternity leave in Morocco

    • Pregnant employees in Morocco are entitled to 14 weeks of paid maternity leave, with a mandatory leave period of seven consecutive weeks following childbirth. Maternity leave is paid at 100% of the employee’s average salary during the six months before childbirth.
    • Employees are entitled to three days of paid paternity leave. However, the three days don’t need to be continuous. They must be taken within one month after childbirth.
  • Sick leave in Morocco

    • The Moroccan labor code designates four days for sick leave. If the sick leave extends longer than four days, employees must notify their employers of the probable length of the leave and provide a medical certificate to justify it. If the absence due to illness or injury extends beyond 180 consecutive days, employers can consider the employee to have resigned. Sick leave is paid by Morocco’s National Social Security Fund.
  • Regional and national holidays in Morocco

    • Morocco has 13 public holidays in a calendar year. The holidays are not included in the minimum paid leave entitlement and they are taken in addition to annual leave. The following are national holidays in Morocco:
      • New Year’s Day (January 1)
      • Independence Manifesto Day (January 11)
      • Labor Day (May 1)
      • Eid al-Fitr/The end of Ramadan (March, April, or May, the specific day fluctuates each year)
      • Eid al-Adha/Feast of Abraham’s Sacrifice (May or June, the specific day fluctuates each year)
      • Islamic New Year (June or July, the specific day fluctuates each year)
      • Throne Day (July 30)
      • Oued Ed-Dahab Day (August 14)
      • Revolution Day (August 20)
      • Birthday of King Mohammed VI/Youth Day (August 21)
      • Prophet Muhammad’s Birthday (August, September, or October, the specific day fluctuates each year)
      • Green March Day (November 6)
      • Independence Day (November 18)

Employment benefits in Morocco

Morocco’s government benefits programs are administered by the Caisse Nationale de Sécurité Sociale (National Social Security Fund). The state’s social security agency was founded in 1959 and provides social security services to Moroccan society. The agency collects contributions from employers and employees to maintain the Moroccan Social Security scheme, which maintains pensions, survivor benefits, short-term disability, long-term disability, healthcare, and paid leave entitlements.

Tax and Social Security

Tax and Social Security in Morocco

  • Individuals are considered Moroccan tax residents when either:
    • They have a habitual residence in Morocco
    • Their economic interests are centered in Morocco
    • They stay in Morocco for more than 183 days within any given 365-day period
  • Moroccan tax residents face taxes on their worldwide income. Non-tax residents are taxed only on Morocco-source income.

Tax thresholds in Morocco

  • As of 2022, the Moroccan individual income tax brackets are:
Taxable Income Tax rate
Up to MAD 30,000 0%
MAD 30,001 – MAD 50,000 10%
MAD 50,001 – MAD 60,000 20%
MAD 60,001 – MAD 80,000 30%
MAD 80,001 – MAD 180,000 34%
Above MAD 180,000 38%
  • As of 2022, the Moroccan corporate tax rate brackets are:
Taxable Income Tax rate
Up to MAD 30,000 0%
MAD 30,001 – MAD 100,000 10%
Above MAD 100,000 38%

Health insurance in Morocco

  • According to the United States International Trade Administration, the Moroccan government is the primary healthcare provider in Morocco with 85% of supply provided by public hospitals and 15% by private health centers.
  • During the course of the Arab Spring in 2011, Morocco adopted a new constitution addressing health in several different articles. Article 31 gives the right to universal access to health services and Article 154 gives the right to quality health services.
  • Most Moroccan residents have healthcare coverage through the primary source of health insurance: the Mandatory Health Insurance, L’Assurance Maladie Obligatoire (AMO). AMO, the payroll-based health insurance system, covers the costs of general medical appointments, surgical operations, childbirth and postnatal care, laboratory tests, oral health treatment, and paramedics.

Pension in Morocco

  • Employees in Morocco are subject to eligibility requirements for the state’s old-age retirement pension. The requirements are as follows:
    • Employees must be at least 60 years old with at least 3,240 days of contributions to the National Social Security Fund.
  • The state’s old-age retirement pension is 50% of the employee’s average monthly covered earnings in the last 96 months. Additionally, employees receive 1% of their average monthly covered earnings for every 216 days of coverage exceeding 3,240 days. The maximum monthly old-age pension is 70% of the employee’s average monthly earnings. The minimum monthly old-age pension is MAD 1,000.
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Payroll in Morocco

An employer of record in Morocco helps accelerate and simplify all payroll-related tasks.

  • Tax due dates in Morocco

    • In Morocco, individual income tax is paid by withholdings made by resident employers. Individual income tax is not required for employees employed by one Moroccan resident entity and earning only employment income. For employees earning income from a non-resident entity or from several employers, filing a tax return by February 28 is required.
  • Payroll cycle in Morocco

    • The payroll cycle in Morocco is generally monthly, where payments are made on the last working day of the month.
  • Average working hours in Morocco

    • Typical working hours are 44 hours per week or 2,288 per year, with a maximum of 10 hours per day.
  • Overtime in Morocco

    • The time worked beyond an employee’s normal hours is considered overtime. If overtime is performed between 6 a.m. and 9 p.m., wages are increased by 25%. If overtime is performed between 9 p.m. and 6 a.m., wages are increased by 50%. If overtime is required on a weekend or rest day, wages are increased by 50% or 100% of the regular pay rate, depending on the employee’s contract.
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