Morocco has a population of more than 36 million people, with leading industries including tourism, agriculture, and fishing. There are many types of company formations allowed in Morocco, based on your business needs. The corporate tax rate is based on income brackets and the tax year corresponds to the calendar year.

Payroll and Tax Considerations:

  • Minimum wage varies based on categories:
    • MAD 3000 per month for public sector workers
    • MAD 2570 per month for private sector employees
    • MAD 69.73 per day for agricultural workers
  • Severance pay is granted to those who have worked at least 6 months and ranges from 96 hours of salary to 240 hours of salary depending on years of service
  • Overtime rates range from 25-200% depending on time of day and type of work
  • The tax rate is progressive and ranges from 0-38% based on income level

HR and Statutory Requirements

  • The Labor Code guarantees employees a leave of 1.5 days for each month of service after 6 months of continuous employment with the same employer
  • Sick leave is unpaid in Morocco and there is no accrual of sick leave. If an employee is absent due to illness for more than 180 days in a year, the employee can be dismissed
  • Female employees are entitled to 14 weeks fully paid maternity leave. The leave begins 7 weeks before the delivery date
  • Fathers are entitled to 3 days of paternity leave, and it must be taken within one month of the birth
  • The retirement age is 60. Employees who have worked in mines for at least 5 years can retire at age 55
  • Employees qualify for pension if they contributed for at least 3,240 days (almost 9 years). The pension amount is equal to 50% of the average monthly wage and increases to a max of 70%

Holidays in Morocco

  • January 1 – New Year’s Day
  • January 11 – Anniversary of the Independence Manifesto
  • May 1 – Labour Day / May Day
  • May 3 – Eid al-Fitr
  • May 4 – Eid al-Fitr holiday
  • July 10 – Eid al-Adha
  • July 11 – Eid al-Adha holiday
  • July 30 – Feast of the Throne / Hijra New Year
  • August 14 – Anniversary of the Recovery Oued Ed-Dahab
  • August 20 – Anniversary of the Revolution of the King and the People
  • August 21 – Youth Day
  • October 8 – The Prophet Muhammad’s Birthday
  • October 9 – The Prophet Muhammad’s Birthday holiday
  • November 6 – Anniversary of the Green March
  • November 18 – Independence Day

Blue Marble has simplified payroll in Morocco with easy-to-use cloud-based technology with customized reporting. View your payroll in real-time across all countries and currencies and ensure compliance with in-country regulations. Our unique, hybrid service model gives you a dedicated US-based team and direct access to in-country experts when questions come up. Talk to us today about simplifying your payroll in Morocco.