Capital
Rabat
Currency
Moroccan dirham (MAD)
Languages
Moroccan Arabic, French
Payroll Frequency
N/A
GDP per Capita
$ 332 million (2019)
Employer Tax
N/A

Employer Of Record In Morocco

With our effective EOR solution, you may expand your business without being constrained by Morocco’s complex employment laws. We can handle all of your employment needs, payroll administration, personnel management, probation, regulation, and compliance with provincial regulations—all without requiring you to open up a separate legal organization. Get in touch with Marzuna experts right away to learn how to seamlessly integrate into Morocco.

Overview of Morocco

This North African nation is situated on the Mediterranean Sea and Atlantic Ocean borders.

  • Population: 37 million (2020)
  • Currency: Moroccan dirham (MAD)
  • Capital city: Rabat
  • Language: Moroccan Arabic, French
  • GDP: $ 332 million (2019)

Employment Landscape in Morocco

For both domestic and international employees, the Ministry of Labor has established contracts, and it oversees them to ensure that the rules are fulfilled.

In order to comprehend rights such as employee benefits, working hours, paid time off, national holidays, etc., let’s take a quick look at Morocco’s employment laws.

employment contract Morocco The employment contract stipulates that the international employment contract must adhere to the guidelines established by the Ministry of Labor. An organisation that makes sure the overseas employment contract complies with established legislation is the National Agency for Promotion of Employment and Skills (ANAPEC). Additionally, it makes sure that foreign workers are only employed when locals are unable to fill the open positions.
Moroccan Compensation laws The minimum wage is the only legal pay regulation standard in Morocco. The payment guidelines and amount are entirely up to the employee.
Standard working hours No more than 8 hours per day or 48 hours per week should be worked. A working month is made up of 191 hours or twenty-six (26) days.

Employees should not work more than 2 hours of overtime per day or 80 hours per year, according to the Moroccan employment contract. The overtime pay is 125% of the basic wage for the day shift (6 am–9 pm) and 150% for the night shift (9 pm–6 am).

Weekend and holiday overtime rates are 150% during the day and 200% at night. Employees should not work more than 2 hours of overtime per day or 80 hours per year, according to the Moroccan employment contract. The overtime pay is 125% of the basic wage for the day shift (6 am–9 pm) and 150% for the night shift.

Forms of wages Employees must get their paychecks twice a month and obtain a salary receipt for their records. Additionally, it’s critical for businesses to regularly raise employee salaries and award incentives.

Companies should adhere to the federal minimum wage and think about providing complementary yearly salaries and vacation wages to their employees in order to ensure equitable remuneration. Businesses may create a healthy workplace culture and encourage employee retention by appreciating and investing in their personnel.

Employee health benefits Morocco Organisations with more than 50 workers are required to provide their personnel with free medical care. To guarantee a safe and healthy working environment for its employees, all businesses and organisations must also abide by the nation’s safety rules.

Additionally, female workers are entitled to 14 weeks of paid maternity leave in order to assist their physical and mental health throughout this important life event. Male workers are entitled to up to three days of paid paternity leave to help their partners and spend time with their infant. These regulations show a dedication to work-life harmony and can raise employee satisfaction and retention.

Paid time off Most businesses operate six days per week, with one day off each week for staff. Additionally, employees have the right to paid time off, which is equal to two (2) days every month.
Holidays in Morocco Holidays in Morocco are:

  • New Years Day (Jan 1)
  • Anniversary of Independence Manifesto (Jan 11)
  • labour Day (May 1)
  • Eid- al- Fitr (May 13-16)
  • Eid- al- Adha (Jul 19-21)
  • Throne Day (Jul 30)
  • Islamic New Year (Aug 8-9)
  • Oued Ed-Dahab Day (Aug 14)
  • Revolution (Aug 20)
  • Birthday of King Mohammed VI and Youth Day (Aug 21)
  • Prophet’s Birthday (Oct 18-20)
  • Green March Day (Nov 6)
  • Independence Day of Morocco (Nov 18)

Contract vs. Full-Time Employee

The service industry in Morocco employs three primary categories of workers: fixed-term, indefinite-term, and job-completion employees. Indefinite-term contracts, while typically spanning one year, are open-ended and can be renewed once.

The duration of a fixed-term contract varies depending on the employee’s status and circumstances, and it automatically converts to an indefinite-term contract upon termination of the employer’s working agreement.

Foreign workers in Morocco receive their salaries in Moroccan dirhams, disbursed bi-monthly, with detailed payment receipts provided. Salary adjustments are made based on the employee’s potential, responsibilities, and job performance.

Contract durations are regulated, with managers having a maximum contract length of three months, while employees’ contracts cannot exceed one and a half months. Laborers’ contracts are further limited to 15 days. Employment cards are a requirement for all employees, which employers are responsible for issuing and annually renewing through the labor office.

Moroccan employment contract laws encompass the rights and responsibilities of employees, including the right to request flexible work arrangements after 26 weeks, protection against unjust dismissal, and the ability to address health and safety concerns in the workplace.

Hiring in Morocco

In Morocco, it is required to give all employees written contracts that are written in Moroccan Arabic. Fixed-term and indefinite contracts are governed by compliance laws, which include specifics like working conditions, pay, and termination provisions. Two copies of the contract must be signed and validated by the appropriate authority in accordance with compliance rules.

Employers in Morocco advertise open positions on a variety of job search websites, including learn4good ,wzayef ,emploi , and bayt

The goal of Morocco’s employment compliance laws is to protect workers’ rights, especially the ability to collectively bargain. Moroccans make up around 23% of the unionised population, and employers are required to abide by all union rules. The laws address a number of topics, including maternity leave, work hours, overtime, annual and holiday leave, labour inspections, minimum pay, minimum age for employment, and employment conditions and work.

Employers must verify compliance at every stage of the employment process even though there are no particular rules for hiring personnel in Morocco. In order to assist companies get started quickly and hire individuals on their behalf, our firm offers the finest Employer of Record solution. By utilising existing subsidiaries, we deliver a good hiring experience.

Probation and Termination in Morocco

Moroccan employees are subject to varying probationary periods based on their job category. Managers have a maximum probationary period of six (6) months, employees undergo a probationary period of three (3) months, and workers’ probationary terms are limited to fifteen (15) days. The standard probationary period typically extends for 12 months (one year), with a single allowed extension, and it can be terminated at any time with seven days’ notice.

In the event of employment contract termination, the employee is entitled to a one-month notice period, unless the termination results from serious misconduct, which may warrant immediate dismissal. Employees with over a year of service are entitled to certain benefits upon termination.

To ensure full compliance with Moroccan employment regulations and avoid legal complications, it is essential to seek assistance. If you require support in adhering to Moroccan employment laws, do not hesitate to contact us for guidance and assistance.

EOR Solution

By collaborating with an Employer of Record, businesses may allocate resources to hiring and other HR-related activities (EOR). Working with an EOR is the most successful way to enter the Moroccan market. Thanks to our integrated employment platform, which removes the need to establish a separate business only to handle staff management, your company’s expansion will continue as planned.

Our expertise lies in creating one-of-a-kind contracts that adhere to regional laws, updating preexisting contracts, and streamlining the hiring process via the use of technologies like electronic signatures on documentation. Set up a trial with us right now to discover hassle-free Moroccan hiring.

Types of Visas in Morocco

Types of Visa Explanation
Morocco tourist visa Those who want to visit Morocco for up to three months can do so with a short-term visa, often known as a tourist visa for Morocco. However, not all visitors to Morocco need a tourist visa. On tourist visas that can be given to anybody, certain travellers may be permitted free access.

The tourist visa may be granted for a variety of reasons, including business, travel for pleasure, attendance at athletic events, journalism, and medical care. Before arriving in Morocco, those who want to participate in any of these activities need to apply for a tourist visa.

Journalists must apply for a tourist visa in order to cover any events or stories in Morocco, while business visitors need one in order to perform business operations while they are there. A valid tourist visa is also required for visitors who want to visit Morocco’s stunning tourist spots.

In order to stay in the nation while receiving medical care, people who need medical assistance in Morocco must simultaneously apply for a tourist visa. Travelers may experience a seamless and stress-free trip to Morocco by getting the required tourist visa.

Morocco transit visa Morocco transit visa is authorised to a foreigner travelling three times across the territory, but the duration of this visa lasts only 72 hours.
Long-term Morocco visa Foreign nationals can apply for a lengthy Morocco visa if they wish to visit the country for job, study, or family reunion. This kind of visa is provided for a period of time more than three months and is intended primarily to permit lengthy stays in the nation.

Typically, the technical validation procedure for this visa takes three months, and applicants must present proof of their trip purpose, such as a work offer or enrollment documentation from a Moroccan educational institution.

The bearer of the visa may then apply for a residence card, which permits them to remain in the nation for a longer amount of time after the visa has been accepted. For individuals looking to settle in Morocco for any length of time, this form of visa is a fantastic alternative.

Types of Work Visa All foreign citizens must have a current work visa in order to be able to legally work in Morocco. The three primary kinds of work visas are the work visa, the student visa, and the family reunification visa. The work visa is a sort of long-term visa.

The Work Visa is intended for people looking for work possibilities in Morocco. The bearer of this visa is allowed to work for a certain employer for a set amount of time.

A student visa is required for foreign nationals who want to attend school in Morocco. They are able to enroll in and continue their studies in Morocco with the help of this visa.

Last but not least, the Family Reunification Visa is designed for the members of the immediate family of foreign nationals who are already employed in Morocco. The family members can live in Morocco lawfully and join their loved ones thanks to this visa.

Morocco works visa requirements In order to guarantee the successful issue of a work visa for Morocco, applicants must provide a number of essential papers. These consist of the filled-out Morocco visa application form, a current passport with photocopies, a recent passport-size photo, proof of lodging, proof of having enough money to cover travel expenses, and proof that the visa price has been paid.

In addition, the requirements for a visa may change depending on why a visitor is visiting Morocco. For instance, you will require a letter of invitation from the relevant enterprise and a reference from the relevant Ministry if you are travelling for business. If you are attending a conference, you will need a mission order if you work for the government or a joining letter from the organising group.

Travellers to attend cultural or athletic events in Morocco will need an invitation from the event department or the relevant ministry, whilst journalists must have the required government authorization.

A medical certificate and evidence of your ability to pay for the treatment are required if you are travelling to Morocco for medical treatment. Applicants can improve their chances of receiving a work visa and successfully visiting Morocco for their intended reasons by following to these requirements.

Work Permit Morocco

The employee must have a job offer or be in the country for at least 15 days before applying for a residence card in order to be granted a work visa in Morocco. A crucial need for acquiring a work permit in Morocco is the job contract. Employees who do not already have a work offer might apply for a residence card or hunt for employment while they are still in the nation. Making an appointment at the Moroccan consulate or embassy, filling out the visa application form, obtaining the appropriate paperwork, assembling it all, submitting it, paying the visa fee, and waiting for the visa to be processed are all steps in the application procedure for a work permit. The employee must verify with the Moroccan government to determine whether they can manage the visa filing with another agency or diplomatic authority if there isn’t a local embassy or consulate.

Payroll and Taxes in Morocco

Foreign businesses operating in Morocco may encounter challenges with the country’s tax legislation. The key tax laws that foreign companies doing business in Morocco need to be aware of are IIT (Industrial Income Tax), corporation tax, social security levies, and VAT. Moroccan companies have many options when it comes to payroll: internal payroll for companies that have a subsidiary there, remote payroll for large multinational companies, and payroll outsourcing to a Moroccan payroll processing provider. Like payroll taxes in other countries, Moroccan payroll taxes also include a tax on residency and personal income. Morocco levies payroll taxes in the range of MAD 0 to MAD 300,000.

information Explanation
Corporate Income Tax 30% is the current corporate tax rate. Banks and financial institutions pay a 37% tax rate. – 37%.
Payroll Tax None
Sales Tax The sale of Moroccan products and services is subject to VAT.

With lower rates of 14%, 10%, and 7%, standard VAT is 20%.

Withholding Tax (WHT) Withholding Tax (WHT) may apply to foreign nationals in Morocco, with varying rates based on the source of income. For instance, whereas royalties, patents, technical assistance fees, and compensation are all taxed at a rate of 10%, dividends are taxed at a rate of 15%. Depending on the kind of interest, different rates of 10%, 20%, or 30% may apply. Rental of equipment is subject to a 10% tax, while non-permanent employee indemnification is subject to a 30% tax. When doing business in Morocco, it’s crucial for foreign nationals to be aware of these WHT rates.
Income tax rate
Gross Income (MAD) Tax Rate (%)
0- 30,000 0
30,001- 50,000 10
50,001- 60,000 20
60,001- 80,000 30
80,001- 180,000 34
Above MAD 180,001 38

A commonly used business structure in Morocco is the Societe a Responsabilite Limitee (SARL), which is equivalent to a Limited Liability Company (LLC). SARL offers various advantages, including limited liability protection for its owners. It provides flexibility in terms of the number of shareholders, with a maximum limit of 50. Business operations are overseen by a manager or managers chosen by the shareholders. Another notable feature is the ease of transferring shares among stockholders and the ability to transfer shares to spouses and parents without complications.

Morocco offers an attractive environment for international businesses to establish their presence with a relatively low initial investment, as low as $1,000. Furthermore, Moroccan companies have the freedom to determine the number of employees they want to hire after 26 weeks of employment.