Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll services and hire new talent in Morocco.
Overview
The University of Al Quaraouiyine, established in 859 AD in Morocco by Fatima Al-Fihri, is considered the world's earliest university, predating institutions like the University of Bologna, Oxford, and Cambridge by centuries. Morocco has a rich history of multiculturalism and knowledge, with a legacy of scholars and intellectuals.
If your expansion plans involve hiring in Morocco, where the first center of learning originated, and you lack a physical entity in the country, which is essential for local talent acquisition, Neeyamo can support your organization. We offer comprehensive solutions for onboarding and managing employees in Morocco, including payroll processing, local compliance, benefits administration, and more.
Facts And Stats
Capital
Rabat
Currency
Moroccan Dirham (MAD)
Official Language
Arabic
Fiscal Year
1 January - 31 December
Date Format
DD/MM/YYYY
Country Calling Code
+212
Time Zone
Western European Time (WET, UTC± 00:00)
Global Payroll
Overview
Payroll: Meaning
Payroll is the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll provider companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business.
Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is using an outsourced payroll provider.
Over the years, Neeyamo – a Global payroll vendor, has observed these complexities and strived to provide a global payroll system through a single technology platform - Neeyamo Payroll. Neeyamo's automatic payroll services provide multi-level controls to ensure adherence to local regulatory requirements.
What is an outsourcing payroll service?
Neeyamo, an outsourcing payroll service, acts as an employer's payroll tax calculator, ensuring adherence to local regulatory requirements using multi-level controls. Benefits of the payroll system include providing timely and accurate payroll - courtesy of our experts worldwide and using a tech-based integrated smart helpdesk solution with seamless support experience manned by payroll business solution experts - Neeyamo has all your payroll needs covered.
Payroll Taxes
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.
Employee Taxes
The employee taxes in Morocco are computed as follows:
Social Allocation/benefit - 4.29%
Mandatory Health Insurance - 2.26%
Social Solidarity (only for individuals earnings) - 1.50%
Total Contribution - 6.55% to 8.05%
Employee Income Tax
| 0 to 30,000 | 0% |
| 30,001 to 50,000 MAD | 10.0% |
| 50,001 to 60,000 MAD | 20.0% |
| 60,001 to 80,000 MAD | 30.0% |
| 80,001 to 180,000 MAD | 34.0% |
| More than 180,000 MAD | 38.0% |
Employer Taxes
The employer taxes in Morocco are computed as follows:
Employer Payroll Contributions
Family Benefits - 6.4%
Death and other daily compensation for illness, pregnancy, etc - 8.6%
Professional training tax - 1.6%
Mandatory Health Insurance - 3.5%
Total Contribution - 20.71% to 25.71%
Payroll Cycle
Overview
Undoubtedly, payroll is a critical process for any organization. The payroll cycle in Austria refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.
Frequency
The mandate in Morocco states that hourly workers should be paid at least twice a month, and salaried employees should be paid monthly.
13th Month Cycle
Although they are not required, bonuses and a 13th month of pay are not unheard of in Morocco, particularly when it comes to honoring seniority.
Global Work
Overview
An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.
An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations.
This allows organizations to focus on collaborating with the employee in Morocco for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements, as they continue their global expansion.
HR Mandates and Practices
Minimum Wage
Effective May 1, 2022, Morocco updated its minimum wage in the following categories:
- Public Sector - From MAD 3,300.00 to MAD 3,500.00 per month.
- Private Sector - From MAD 2,828.72 to MAD 2,902.00 per month and MAD14.81 and MAD16.31 per hour.
Overtime
According to Article 201 in the labor law of Morocco, overtime is subject to a wage increase of:
- 25% when performed between 6:00 am and 9:00 pm; and
- 50% when performed between 9:00 pm and 6:00 am.
These percentages increase to 50% and 100%, respectively, when overtime is performed on the employee's weekly rest day (even if compensatory leave is granted).
For OT calculation, the employer needs to consider the Gross salary, including seniority bonuses and other bonuses, if any.
Data Retention Policy
In Morocco, tax records must be kept for a minimum of 10 years.
Morocco gazettes 2023 finance law
With effect from January 1, 2023
- Revision of the rate of deduction of professional expenses for salaried income earners.
- Extension until December 31, 2026 of the exemption for employees at the time of their first recruitment.
- Extension of the period of exemption from the IR for employees recruited under an openended employment contract.
- Ceiling of the exemption of the IR to 1,000,000 dhs with regard to the total amount of the following allowances.
Hiring and Onboarding Requirements
Hiring
Article 24 of the Moroccan labor code stipulates that the employer is obliged to communicate to the employees in writing at the time of hiring, the provisions relating to the following areas as well as every change made to them:
- the collective labor agreement;
- the working hours;
- the terms and conditions for the application of the weekly rest period;
- the legal provisions and measures concerning preserving health and safety and preventing machinery-related risks, in general, the company's internal work regulations.
- the date, time, and place of pay;
- the registration number of the National Social Security Fund (CNSS);
- the insurance organization insuring them against work accidents and professional diseases (if applicable).
Onboarding
The following documents are required when onboarding an employee in Morocco:
- Copy of the National ID card
- Copy of CNSS registration (if any)
- Address with postal code (from ID Card)
- Number of dependents for income tax purposes
- Bank information "RIB"(Bank Details)
- Work Permit (for Foreigners)
- Education certificate (if required)
Probation
In Morocco, the probation rules are different depending upon the designation of a person.
For executives, the notice period is accounted for in the following way:
- If they have worked less than one year, they receive a notice period of one month.
- If they worked for 1-5 years, they receive a notice period of 2 months
- If they worked for more than five years, they receive a notice period of 3 months
For employees:
- If they worked for less than one year, eight days’ notice period is given
- If they worked for 1-5 years, one month’s notice period is given.
- If they worked for more than five years, two months’ notice period is given.
Leave
Public Holiday
The following public holidays are observed in Morocco:
- January 1: New Year's Day
- January 11: Anniversary of the Independence of Maniesto
- April 22 and Apr. 23: Eid al-Fitr
- May 1: Labor Day
- June 29 and Jun. 30: Eid al-Adha
- July 19: Hijra New Year
- July 30: Feast of the Throne
- 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
- September 27 and Sept. 28: Prophet Muhammad's Birthday
- November 6: Anniversary of the Green March
- November 18: Independence Day
With effect from May 3, 2023, Beber New Year is being made a paid public holiday.
Sick Leave
Employees are entitled to four paid sick days (or eight half days) annually.
If the absence is expected to extend more than four days, the employee must notify the employer and produce a medical certificate to support the absence cause.
If an employee is absent from work for more than 180 days in a row, the employer has the authority to ask them to quit.
Maternity Leave
Paternity Leave
Within the first month after a child is born, fathers are entitled to three days of paid paternity leave.
Other Leave
The conditions of the collective agreement or employment contract may include additional leave that an employee may take:
Marriage Leave: Up to 4 days of leave.
Bereavement leaves: Up to 3 days of bereavement leave in the event that a member of their immediate family passes away.
Leave of Care: 2 days are needed to recover from surgery on a spouse or dependent kid.
Circumcision Leave: 2 days.
Termination
Overview
A fixed-term contract may be terminated by the employer for any of the following reasons: business, personal, or employee misbehavior. It mandates notice and a justification for the termination in writing. When misbehavior is the cause, a warning must be provided and the employee is given the opportunity to justify their actions.
Notice Period
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:
- Less than 1-year service, the notice period is one month
- Between 1 year to 5 years of service, the notice period is two months
- More than five years of service, the notice period is three months
For employees:
- Less than one year service the notice period is eight days
- One year to 5 years of service the notice period is one month
- More than five years of service, the notice period is two months
Severance Pay
If an employee has at least six months of employment, employers shall give severance compensation (if applicable) at a rate of 96 hours of salary each year of service, rising to 144 hours per year after five years, 192 hours per year after 10 years, and 240 hours per year after 15 years.
The average pay earned during the fifty-two weeks before the contract's termination determines the severance hourly rate.
Visa
Overview
There are three main types of visas for Morocco.
- Morocco Tourist Visa.
- Morocco Transit Visa.
- Long-Term Morocco Visa.
There are several broad categories for Moroccan visas, but long-term visas are the most common for employment purposes. This group of visas is valid for three months but allows the holder to apply for a residency card.
The subtypes of Morocco long-term visas include:
- Work visa: Foreigners looking for a job in Morocco must obtain a work visa in addition to a work permit
- Student visa: For foreigners wanting to study at a Moroccan educational institution
- Family reunification visa: For foreigners wishing to join a family member living in the country.
Before visiting Morocco, foreigners who desire to work must get a work permit (attestation de travail) from the Agence Nationale de Promotion de l'Emploi et des Competences (ANAPEC), known as the National Agency for the Promotion and Employment of Skills.
The following paperwork is needed to apply for a work permit:
- Application forms that have the necessary stamps
- Copies of passports
- Passport-sized photos
- Copy of the employment contract (legalized by the government office)
- Copies of diplomas and degrees
Employee Background Checks
Legal and Background Checks
In Morocco, the following background checks can be done by the employer:
- Identity and personal information checks.
- Immigration compliance
- Medical examination
For certain limited occupations (e.g, Solicitors and chartered accountants), a criminal records check is required.
Last updated on September 25, 2023
If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com
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