Hiring Talent And Managing Payroll In Morocco

Agreements

• Employment agreements must be in writing and may be drafted in either Arabic or French.
• The agreement should include the terms and conditions of employment, such as the job title, salary, working hours, and duration of the contract.
• Fixed-term contracts are allowed, but the duration should not exceed two years unless there is a specific reason for the longer term.
• Collective bargaining agreements can be negotiated between employers and trade unions to regulate employment conditions and wages in certain sectors or industries.
• It is recommended that both parties sign the agreement in the presence of a notary or a representative from the labor inspectorate to ensure its legal validity.

Onboarding Process

• Employers in Morocco typically provide a detailed job offer letter outlining the terms of employment, including the job title, salary, working hours, and duration of the contract.
• Employers must obtain a medical certificate for the employee, and both parties must sign the employment contract before the employee's start date.
• Mandatory documents for onboarding include the employee's identification card or passport, a copy of their educational qualifications, and their social security card.
• Employers may also request additional documents such as a criminal record check or a driving license

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Health insurance coverage
• Dental Insurance
• Vision care coverage
• Disability insurance
• Life insurance
• Wellness programs

Working hours and overtime

• Work hours: The standard workweek in Morocco is 44 hours, with a maximum of 10 hours per day.
• Break: Employees are entitled to a minimum of 30 minutes of rest after six hours of work
• Overtime: Overtime work is allowed up to a maximum of 120 hours per year, and employees must be compensated at a rate of at least 125% of their regular hourly wage for any overtime hours worked.

Social Security

Taxes for Employees

• Income tax: Employees are required to pay income tax on their salaries at a progressive rate, ranging from 0% to 38%

  • 38%: Beyond 180,000 MAD
  • 34%: 80,001 - 180,000 MAD
  • 30%: 60,001 - 80,000 MAD
  • 20%: 50,001 - 60,000 MAD
  • 10%: 30,001 - 50,000 MAD
• Family benefits: 0.52%
• Short-term social benefits: 7.93%
• Long-term social benefits: 3.96%
• Health insurance: 2.26%
• Social solidarity contribution: 1.6%

Termination

• Mutual agreement between the employer and employee
• Termination during the probation period
• Termination with notice period: The employer can terminate the contract by providing the employee with notice. The length of the notice period depends on the length of service of the employee, ranging from 48 hours to three months.
• Termination without notice: The employer can terminate the contract without notice if the employee is guilty of serious misconduct, including theft, fraud, or violence in the workplace.
• Termination for economic reasons

Severance Pay

• 96 hours pay: First five years of employment
• 144 hours pay: 6 - 10 years of employment
• 192 hours pay: 11 - 15 years of employment
• 240 hours pay: 15+ years of employment

Employees or Contractors

• If an employer misclassifies an employee as a contractor, they may be subject to penalties and fines, and the employee may be entitled to benefits and protections under labor laws in Morocco.
• Similarly, if an employer misclassifies a contractor as an employee, they may be required to provide back pay and benefits retroactively and may also be subject to penalties and fines

Final Words