There are three types of employment contracts in Morocco: fixed term, indefinite term and job completion.

Definite-term contracts may not exceed 12 months (one year) and can be renewed only once, while indefinite-term contracts do not have an expiration date. In the case of a fixed-term contract, if an employee continues working for the employer after the contract expires, then the fixed-term contract will automatically become an indefinite-term contract. The probation period for indefinite-term contracts cannot exceed three months for managers, 1.5 month for office employees, and 15 days for on-site laborers. For definite-term contracts that are for less than six months the probation period is limited to one day for every week and 30 days for contracts for more than six months.

The probation period can be renewed only once. The employer is required to have an employment card issued and annually renewed for the employee from the Labour office. They are also required to establish an internal medical first aid room with a doctor when employing more than 50 employees. In Morocco, every 26 days or 191 hours of work is considered one full month of employment.

The minimum wages in Morocco are set according to collective bargaining agreements/unions/employment contracts and vary according to the type of work being undertaken:

• The minimum wage for the public sector is 3,500 MAD per month

• The minimum wage for the private sector is 2,828.71 MAD per month

• The minimum wage for the agricultural sector is 1994.20 MAD per month

In accordance with Law Article 184 “code du travail” (Labor Code), the standard working hours per week are 44 hours, with a maximum of 10 hours per day.

Overtime

All working hours of more than the standard working hours per week are to be paid as overtime and are regulated by employment contracts/collective agreements. It must also be mutually agreed upon before any overtime work is done.

In general, maximum overtime limits must not exceed 138 hours over four months and 250 hours annually. Overtime hours are paid at a rate of 125% of the regular salary for overtime between the hours of 6 am and 9 pm and increase to 150% of the typical salary for overtime between the hours of 9 pm and 6 am (night-time work).

Any overtime work required on a weekend/rest day/Sunday is compensated at between 150% and 200% of the regular salary rate of pay, dependent on the employee’s collective agreement/contract.

Employees are entitled to four days (or eight half days) of paid sick leave per year. If the absence lasts more than four days, the employee must inform the employer of the probable duration of absence and provide a medical certificate justifying the absence reason. An employer has the right to request the employee resign if they have more than 180 consecutive days sick during one year.

Maternity Leave

Pregnant employees receive 14 weeks of paid maternity leave, seven weeks before birth, and seven weeks after. The maternity payment is at the rate of the regular salary rate and paid by the employer. Mothers can also request to take up to a year of additional unpaid leave.

Paternity Leave

Fathers are entitled to three days of paid paternity leave within the first month of the child’s birth.

Parental Leave

There is no parental leave apart from maternity and paternity leave.

After six months of continuous service, an employee accumulates 1.5 days of leave per month up to a standard entitlement of 18 paid days of annual leave. This can be increased to 24 days per year for employees under the age of 18 years old.

The duration of paid annual leave is increased by one and a half days every five years until a maximum of 30 days of annual leave is reached.

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave for:

• Marriage Leave: an employee is entitled to up to 4 days’ leave when they get married.

• Bereavement Leave: an employee is entitled to up to 3 days of bereavement leave in the death of an immediate family member.

Care Leave

• Leave for surgery on the spouse or dependent child: 2 days.

• Leave for Circumcision: 2 days.

Public holidays that fall on the weekend are usually lost.

Religious holidays are determined by the lunar cycle and will show as tentative until they are confirmed nearer the date of the holiday.

Date Notes Day Holiday

1 Jan 2024 - Monday - New Year’s Day

11 Jan 2024 - Thursday - Anniversary of the Independence Manifesto

10 Apr 2024 - Wednesday - Eid al-Fitr

1 May 2024 - Wednesday - Labour Day

17 Jun 2024 - Monday - Eid al-Adha - Tentative

18 Jun 2024 - Tuesday - Eid al-Adha Holiday - Tentative

8 Jul 2024 - Monday - Hijra New Year - Tentative

30 Jul 2024 - Tuesday - Feast of the Throne

14 Aug 2024 - Wednesday - Anniversary of the Recovery Oued Ed-Dahab

20 Aug 2024 - Tuesday - Anniversary of the Revolution of the King and the People

21 Aug 2024 - Wednesday - Youth Day

16 Sep 2024 - Monday - Prophet Muhammad’s Birthday - Tentative

17 Sep 2024 - Tuesday - Prophet Muhammad’s Birthday Holiday - Tentative

6 Nov 2024 - Wednesday - Green March Day

18 Nov 2024 - Monday - Independence Day

Morocco has universal health insurance.

Employers can terminate a fix term contract for the following reasons – business, personal, or worker’s misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain actions.

Notice Period

Collective agreements may contain provisions on notice periods. If notice periods in the collective agreement differ from the statutory notice periods, the employer and the employee observe the notice periods in the collective agreement.

The amount of notice is dependent on the function of the employee and the length of service. If the employer terminates the contract, the notice period is as follows:

For executives and similar positions:

• For less than 1 year of service, the notice period is one month

• Between 1 year to 5 years’ service, the notice period is two months

• More than five years’ service, the notice period is three months

For employees:

• Less than one year of service the notice period is eight days

• One year to 5 years’ service the notice period is one month

• More than five years’ service, the notice period is two months

Severance Pay

Employers should pay severance pay (if applicable) if an employee has at least six months’ service at 96 hours of salary per year of service, increasing to 144 hours per year after five years of service, 192 hours per year after ten years, and 240 hours per year after 15 years.

The severance hourly rate is calculated based on the average wages received during the 52 weeks preceding the termination of the contract.

Probation Period

All employees are subject to a 1-week trial period for any role. The following probation period differs dependent on job position/status, i.e., 15 days for blue-collar workers, 45 days for white-collar workers, and three months for management.

Employer Payroll Contributions
6.40% - Family Allocation

8.60% - Social Allocation/Benefits (ceiling of 6,000 MAD)

4.11% - Health Insurance

1.60% - Professional Training Tax

1.50% - Social Solidarity (only for companies with annual net profits of 1 million to 5 million MAD)

2.50% - Social Solidarity (only for companies with annual net profits of 5 million to 10 million MAD)

3.50% - Social Solidarity (only for companies with annual net profits of 10 million to 40 million MAD)

5.00% - Social Solidarity (only for companies with annual net profits in excess of 40 million MAD)

20.71% to 25.71% Total Employment Cost

Employee Payroll Contributions
4.29% - Social Allocation/Benefits

2.26% - Health Insurance

1.5% - Social Solidarity (only for individuals earning 120,000 MAD annually)

6.55% – 8.05%  Total Employee Cost

Employee Income Tax
Exempt - 0 to 30,000

10.0% - 30,001 to 50,000 MAD

20.0% - 50,001 to 60,000 MAD

30.0% - 60,001 to 80,000 MAD

34.0% - 80,001 to 180,000 MAD

38.0% - More than 180,000 MAD

Payroll Cycle

In Morocco, the payroll frequency is generally monthly. Work is typically paid on the last day of the month.

13th Salary

Although there are no provisions in the law regarding 13th salaries, it is common practice to pay 13th-month bonuses and/or seniority bonuses.

Foreigners wishing to work in Morocco must obtain a work permit (attestation de travail) from the National Agency for the Promotion and Employment of Skills (Agence Nationale de Promotion de l’Emploi et des Competences) more commonly known as ANAPEC, before entering the country. The documents required for getting a work permit include:

• Application forms with the appropriate stamps

• Passport copies

• Photographs, passport-size

• Employment contract copy (legalized by the government office)

• Copies of degrees and diplomas

The Ministry of Labour and Professional Integration requires all employers seeking to sponsor foreign nationals for employment in Morocco via the online portal Taechir. Upon completing the online application process, the system will generate three copies of E-Work Permit forms which must be printed, stamped, and signed by the foreign national and the authorized signatory of the sponsoring entity. Both signatures must be certified by a notary public or legalized by the respective Moroccan consular post abroad.

Once finalized, the foreigner must submit the original forms and all documentary requirements to the Moroccan Department of Employment for approval.Once this is complete, the foreigner may enter the country to commence work.

The standard rate of VAT Morocco is 20%.