Table of Contents


Table of Contents


Moroccan Dirham (MAD)

Payroll Frequency


Employer Taxes

20.71% to 25.71% 

About Morocco

Morocco is a North African country, featuring rugged mountains, coastlines, the Sahara desert, and a history of independence uncommon in the region. It is a constitutional monarchy with an elected parliament. The predominant religion is Islam with Arabic and Berber as its official languages, although French is also widely used reflecting its history as a French protectorate.

The country’s climate is Mediterranean with lush forests to its north combined with the more arid inland deserts to its south. It has a diverse and relatively large regional economy, relying primarily on tourism, agriculture, telecoms, IT, and textiles. The country has emphasized investment in transportation, ports, and industrial infrastructure with the focus of positioning itself as a center for business across Africa. With a population estimated at 33 million, Morocco’s major cities include Rabat (its capital), Casablanca, Fez, and Marrakesh.

Employment Relationship

• Permanent Employment

In Morocco, indefinite-term contracts are agreements for employees whose work does not fall under conditions for fixed-term or specific work contracts and are considered permanent. They are concluded for jobs of a permanent nature. Indefinite term contracts may include a probationary period. Permanent employees are entitled to severance pay upon dismissal after working 6 months with the same employer.

• Fixed-Term or Specific-Purpose Contracts

In Morocco, employment contracts can be made for a specific duration or for the completion of a particular project. Fixed-term contracts can only be concluded in cases where the employment relationship cannot be of indefinite duration. The maximum term for a fixed-term contract in the agricultural sector is 6 months, renewable for up to 2 years. In all other sectors, the maximum term is 1 year, renewable once. If the job continues after the maximum term, a fixed-term contract becomes a contract for an indefinite period. Fixed-term contracts expire on their due date. They can also be terminated before their due date in one of the following circumstances: If a party pays compensation to the other party Due to the occurrence of a serious error on the part of the other party As a result of a force majeure. 

• Temporary Employment Contratcs

In Morocco, Labor Code allows private recruitment agencies to hire employees and make them temporarily available to third-party "users" who set their tasks and control performance. A temporary employment contract can be concluded for 3 months (renewable once) or 6 months (non-renewable). Temporary employment contracts can only be used to replace an absent or suspended employee, resolve a need for additional staff caused by a temporary increase in the business's activity, provide seasonal labor, or complete tasks not customarily considered suitable for an employment contract of an indefinite period. The user company must take all preventive and protective measures to protect its temporary employees' health and safety.

Probationary Period

The length of the probationary period varies according to the type of contract and depends on the category of employees.  For contracts of an indefinite duration: Executives – 3 months Regular employees – 1.5 months Other workers – 15 days For fixed-term contracts: 1 day per workweek up to 2 weeks for contracts of less than 6 months 1 month for contracts of more than 6 months. During probationary period, any party can terminate the employment contract of their own free will without notice or compensation. However, if an employee has worked for a week, and unless the employee committed a serious mistake, the employer has to give a notice of 2 days for daily wage earners and 8 days for monthly wage earners before terminating the employment contract.

Working Hours

The Labor Code of Morocco stipulates that the regular hours of work must not exceed 10 hours per day. When employees are needed during periods of unusual activity or intermittent work, the workday can temporarily be extended to 12 hours. There are 44 hours in a workweek (typically 2,288 hours per year) for non-agricultural activities. For agricultural activities, the regular number of hours worked annually is 2,496. If work is stopped collectively or partly due to an accident or force majeure, daily working hours may be extended to make up for the lost work hours. However, before doing so, employees and trade union representatives (if applicable) must be consulted. It is prohibited to work for more than 30 days in a year to make up for lost hours. Extensions cannot exceed 1 hour per day.

Holidays / PTO

• Statutory Holidays

New Year’s Day (January 1), Anniversary of the Independence Manifesto (January 11), Labor Day (May 1), Feast of the Throne (July 30), Anniversary of the Recovery Oued Ed-Dahab (August 14), Anniversary of the Revolution of the King and the People (August 20), Youth Day (August 21), Anniversary of the Green March (November 6), Independence Day (November 18), Eid Al-Fitr (date may vary), Eid Al-Adha (date may vary), Hijra New Year (date may vary), Eid Al-Mawlid Annabawi (date may vary).

• Paid Annual Leave

In Morocco, 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, unless more favorable terms are outlined in the contract. After five years of service, the number of days of paid leave increases by 1.5 days for each full employment period of five continuous or non-continuous years, up to a total of 30 days. Minor employees under the age of 18 years are entitled to 2 days of annual leave per month. Annual leave can be divided into parts or carried over two years by agreement between the employee and the employer. Annual leave is paid at employees' rate of usual remuneration at least 30 days before the leave starts. If the employment contract is terminated before the employee could enjoy their annual leave, they are eligible to receive compensation for the remaining leave regardless of the reasons that led to the termination of the employment contract.

• Sick Leave

In Morocco, sick leave is unpaid. The Labor Code does not provide for the accrual of sick leave. If an employee is absent due to illness for more than 180 days during a year, the employer may ask for a resignation. An employee is entitled to paid sick leave in case of absence caused by illness or accident (other than occupational injury and accident). An employee who cannot work because of illness must inform the employer and justify their absence within 48 hours. A medical certificate must be provided if the absence is longer than four days.

• Maternity Leave

The Labor Code of Morocco grants pregnant employees 14 weeks of fully paid maternity leave. The leave is expected to begin 7 weeks before the delivery date, and the remaining 7 weeks are used after birth. Maternity leave can be extended to 8 weeks before and 14 weeks after delivery if medically necessary (a medical certificate must be presented). Employees must notify their employers at least 15 days before ending their maternity leave. Employees must have been insured for at least 6 months in the last 12 months preceding the expected date of delivery to be eligible for maternity benefits. Daily allowance equals 50% of the daily wage rate. It is paid for the duration of maternity leave of 14 weeks if the employer is not paying any wages. Employers have the right to suspend the employment contract during maternity leave but are prohibited from terminating an employee's employment contract while she is on maternity leave. 

• Paternity Leave

A father is entitled to 3 days of leave for a child's birth once he accepts the child's paternity. Paternity leave is fully paid and can be continuous or discontinuous. It must be taken within 1 month of birth. The leave is paid by the National Social Security Fund.

Termination of Employment

• Notice Period

After the first week of employment, a notice period is required to terminate the employment contract. If the employee is paid by the day/week/fortnight, only 2 days' notice is required. If the employee is paid monthly, then 8 days' notice is required. When the employee is dismissed after the probationary period's expiry without serious misconduct, the notice period must be at least 8 days. Termination without notice or before the term of expiry leads to compensation from the responsible party. Employees are entitled to a daily break of up to 2 hours per day, not exceeding 8 hours per week, during their notice period to search for another job.

• Severance Benefits

A permanent employee who has worked for at least 6 months is entitled to receive severance pay upon their dismissal as follows: 96 hours of salary for the first five years of service 144 hours of salary for the seniority period between the sixth and tenth year 192 hours of salary from 11th to 15th year of service 240 hours of salary for the service period exceeding 15 years. Severance pay is increased by 100% for a trade union representative dismissed during their tenure. Employees dismissed for disciplinary issues are not entitled to any severance pay.