Payroll and Benefits Guide Morocco
Last updated: Jan 01, 2025
Contribution
|
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 40,000 |
|
10.0%
|
40,001 – 60,000 MAD |
| 20.0% | 60,001 – 80,000 MAD |
| 30.0% | 80,001 – 100,000 MAD |
| 34.0% | 100,001 – 180,000 MAD |
| 37.0% | Above 180,000 MAD |
Employer taxes
Employee taxes
Minimum Wage
General
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 4,500 MAD per month
- The minimum wage for the private sector is 3,269 MAD per month
- The minimum wage for the non-agricultural sector (SMIG) is 3,045 MAD per month
- The minimum wage for the agricultural sector (SMAG) is 2,255 MAD per month
MINIMUM WAGE (PER MONTH)
Payroll
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.
Working Hours
General
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
| Aspect | Regulation Details |
| Maximum Ordinary Hours | 44 hours per week. This is the standard statutory work limit (Article 184). |
| Daily Limit | The maximum duration of the working day is 10 hours. |
| Annual Overtime Cap | Overtime is strictly limited to a maximum of 250 hours per year. This is the general limit, though some sources cite a specific limit of 138 hours over a four-month period. |
| Authorization | Overtime must be mutually agreed upon and is generally limited to exceptional increases in workload. |
| Exemptions | Employees in senior managerial or supervisory positions may be excluded from working hours restrictions. |
Mandatory Overtime Pay Rates (Article 201)
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the basic hourly wage. The rate depends on the time of day and the day of the week.
| Day/Condition | Time Period | Minimum Premium Rate (Supplement) | Total Pay Rate |
| Daytime Overtime (Working Days) | 6:00 AM to 9:00 PM | +25% of the basic hourly wage. | 125% |
| Nighttime Overtime (Working Days) | 9:00 PM to 6:00 AM | +50% of the basic hourly wage. | 150% |
| Rest Day/Public Holiday (Daytime) | 6:00 AM to 9:00 PM | +50% of the basic hourly wage. | 150% |
| Rest Day/Public Holiday (Nighttime) | 9:00 PM to 6:00 AM | +100% of the basic hourly wage. | 200% |
Compensation for Rest Days
| Compensation Method | Statutory Requirement | Notes |
| Rest Day Compensation | When an employee works on their weekly rest day or an official public holiday, they must receive the applicable premium (150% or 200%) PLUS be granted a compensatory rest day within the following 30 days. | This ensures the employee receives both premium pay and the mandatory weekly rest. |
| Compensation Inclusion | The calculation base for overtime shall include the basic wage and its supplements (excluding family allowances and expense reimbursements). |
Leave
Annual Leave (vacation)
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.
PTO carryover
In Morocco, statutory annual leave does not automatically expire at year-end.
Note:
- For Zapeo, Leave does not fall away and it may not be paid in lieu.- Leave may only be paid at termination.
Public Holidays
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 | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 11 January 2026 | Sunday | Independence Manifesto Day | Standard holiday |
| 14 January 2026 | Wednesday | Amazigh New Year | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 30 July 2026 | Thursday | Feast of the Throne | Standard holiday |
| 14 August 2026 | Friday | Anniversary of the Recovery Oued Ed-Dahab | Standard holiday |
| 20 August 2026 | Thursday | Anniversary of the Revolution of the King and the People | Standard holiday |
| 21 August 2026 | Friday | Youth Day (Birthday of King Mohammed VI) | Standard holiday |
| 6 November 2026 | Friday | Green March Day | Standard holiday |
| 18 November 2026 | Wednesday | Independence Day | Standard holiday |
Sick Days
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
Female employees in Morocco are entitled to 14 weeks of paid maternity leave, normally taken as 7 weeks before the expected birth date and 7 weeks after childbirth. This leave is paid at 100% of the regular salary (subject to social security reimbursement limits) and is protected by law. After the statutory 14 weeks, a mother may request additional unpaid leave — typically up to one year — with the employer’s agreement. The employer may not dismiss an employee due to pregnancy or during maternity 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.
Other Leave
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.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
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.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| For manual workers: paid at least twice a month, with a maximum interval of 16 days between payments. For other employees: paid at least once a month. Wage-payment must be in Moroccan currency and on a workday. | On termination the employer must pay outstanding wages, accrued leave, indemnities/severance where applicable, and must respect procedural requirements for dismissal. | Wages must be paid in money in Moroccan dirhams (legal tender). The law does not clearly mandate payment only by bank account for all employees; payment method is typically as per contract or collective agreement. |
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.
Immigration
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.
VAT
General
The Standard rate of VAT Morocco is 20%.
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Payroll and Benefits Guide
in Morocco
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 11 January 2026 | Sunday | Independence Manifesto Day | Standard holiday |
| 14 January 2026 | Wednesday | Amazigh New Year | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 30 July 2026 | Thursday | Feast of the Throne | Standard holiday |
| 14 August 2026 | Friday | Anniversary of the Recovery Oued Ed-Dahab | Standard holiday |
| 20 August 2026 | Thursday | Anniversary of the Revolution of the King and the People | Standard holiday |
| 21 August 2026 | Friday | Youth Day (Birthday of King Mohammed VI) | Standard holiday |
| 6 November 2026 | Friday | Green March Day | Standard holiday |
| 18 November 2026 | Wednesday | Independence Day | Standard holiday |
Should we calculate the Back dated meal allowance for the previous month joiners
Could you please provide further context?
please advise if there are any allowances in Morocco that are tax exempt?
Yes There is a few tax exempt allowance, depending on the contract and position
Some allowances will be tax exempt depending on the nature of the allowance, the reason behind it and how it is distributed e.g. workers going on business trips will be able to reclaim some costs tax free.
What is Morocco’s policy on unpaid leave?
Could you provide more details on the purpose of the paid leave and the length?
If you give notice, are you entitled to a last paycheck?
Workers must always be paid out for time that has been worked.
anyone can answer please. my boss let us work for 10 and half hour everyday six days a week. we started our time of working from 10am to 8:30 in the evening. Yesterday she wants me to make over time without pay for maybe 9pm to 10pm and she just want to return the favour by letting us work in the morning late. i insisted to get the client and i told her that im going home. she told me to return my key of my locker and dont comeback again. i just need advice to what i need to do or where to go so i can complain. i work for the for more than 1 year. this coming February is my second year..
Unfortunately, this is not something we can advise on; We recommend reaching out to HR or whoever your manager reports to. If these channels are not an option you should reach out to a local lawyer to understand your rights.
Could you please advise what is the mileage rate in Morocco?
There is no specific set mileage reimbursement rate in Morocco, instead this is typically determined by the company’s own internal policies.