What does a $60,000 hire cost in Morocco?
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Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Morocco at $60,000 base salary.
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Key Takeaways for Hiring in Morocco
- Morocco observes 14 public holidays, including fixed and Islamic-calendar holidays
- Termination rules differ sharply depending on whether dismissal is with cause, without cause, or via mutual agreement, each requiring defined procedures and documentation
- Eligible employees receive severance based on hours of pay per year of service, with higher multipliers as tenure increases
- Final pay must be processed promptly, and employers must issue required certificates such as the work certificate and final settlement (solde de tout compte)
- For foreign employees, employers must handle visa and residence permit updates or cancellations following termination.
Continent
Africa
Capital
Rabat
Currency
Moroccan Dirham (MAD)
Language
Arabic and Amazigh; French is widely used in business
Payroll Cycle
Monthly
Pay Date
Before the end of the month
VAT
20%
Morocco Employment Contract Overview
Employment contracts in Morocco follow a structured legal framework designed to ensure clarity around contract type, language requirements, probation rules, notice periods, and statutory entitlements.
Below is the core structure we use when preparing compliant employment contracts for hires in Morocco.
What Do You Need To Include In A Moroccan Employment Contract?
Here’s what you need to include to stay compliant when drafting an employment contract in Morocco.
Employee Information
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Full name
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ID number
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Role / Job title
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Start date
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Contract duration
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Working hours
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Probation and notice conditions
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Termination provisions
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Compensation details
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Nationality
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Address
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Date of birth
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Leave entitlements
Payroll
Average employer cost
14.69% to 18.19%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory but commonly practiced |
| Avg employer tax | 14.69% to 18.19% |
Tax Breakdown
Employer Contributions
| Category | Rate / Details |
|---|---|
| Social Security (CNSS) | Approximately 20.71% to 25.71% of gross salary, covering family benefits, social benefits, and health insurance |
| Professional Training Tax | 1.6% of gross salary |
| Social Solidarity Tax | 2.5% for companies with net profits between MAD 5 million and MAD 40 million 3.5% for companies with net profits exceeding MAD 40 million |
Employee Contributions
| Category | Rate / Details |
|---|---|
| Social Security (CNSS) | Approximately 8.05% of gross salary |
Personal Income Tax (PIT) – Progressive Rates
| Category | Rate / Details |
|---|---|
| Up to MAD 30,000 | 0% |
| MAD 30,001 – 50,000 | 10% |
| MAD 50,001 – 60,000 | 20% |
| MAD 60,001 – 80,000 | 30% |
| MAD 80,001 – 180,000 | 34% |
| Above MAD 180,000 | 37% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 20% |
Mandatory Employee Benefits in Morocco
Employment of expats is supported in this country.
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government | Payroll Contributions | Health Insurance (Assurance Maladie Obligatoire – AMO) is mandatory for all employees (locals and expats under Moroccan contracts) and is administered through CNSS, with contributions shared between employer and employee. AMO provides access to basic healthcare services and reimbursement for medical expenses. |
| Pension/Social Security | Government | Payroll Contributions | All employers are required to participate in the social security system and must register every employee. Foreign workers employed in Morocco are included under the same conditions as Moroccan citizens. The old-age pension amounts to 50% of the insured person’s average monthly earnings over the 96 months preceding retirement. |
| Other Statutory Benefits | Government | Payroll Contributions | Professional training tax is mandatory to fund vocational training. |
Leave And Holiday Entitlement In Morocco
Annual Leave
Employees become eligible for paid annual leave after six months of uninterrupted service with the same employer, accruing 1.5 days of leave per month worked. After completing five years with the employer, the annual leave entitlement increases by 1.5 days each year, up to a maximum of 30 days.
With mutual consent, annual leave can be divided or carried over across two consecutive years. The leave schedule must be shared with eligible employees at least 30 days before leave starts and posted in a common workplace area.
Payment for annual leave must be made no later than the day before the leave begins.
Public Holidays
Morocco observes 14 national public holidays, four of which are Islamic holidays with dates that vary each year on the Gregorian calendar.
Fixed-date holidays include:
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January 1: New Year’s Day
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January 11: Anniversary of the Manifesto of Independence
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January 12 or 13: Amazigh (Berber) New Year
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May 1: Labor Day
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July 30: Throne Day
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August 14: Oued Ed-Dahab Day
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August 20: Revolution of the King and People Day
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August 21: King Mohammed VI’s Birthday (Feast of Youth)
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November 6: Feast of the Green March
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November 18: Independence Day
Holidays without fixed dates include:
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Islamic New Year
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Prophet Muhammad’s Birthday
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Eid al-Fitr
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Eid al-Adha
Sick Leave
If an employee is unable to work due to illness or an accident, they must notify their employer within 48 hours.
For absences longer than four days, they must inform the employer of the expected duration and provide a medical certificate. The employer may require an examination by a doctor of the employer’s choosing at the employer’s expense.
If the absence lasts more than 180 consecutive days (excluding occupational injuries or disease) or the employee is deemed unfit to continue working, the employee may be considered to have resigned.
Sick leave benefits are provided by the National Social Security Fund. Employees must have contributed at least 54 days in the last six months, unless the absence is due to a non-occupational accident.
Benefits amount to two-thirds of the average monthly wage from the previous six months and are paid from the fourth day of illness for up to 52 weeks within 24 months.
Maternity Leave
Employees may take up to seven weeks of maternity leave before the expected delivery date and 7 weeks after, totaling 14 weeks. If the baby arrives early, leave extends to ensure a full 14 weeks. Additional leave may be granted in medical complications.
Employers cannot terminate employment due to pregnancy or during maternity leave, except for serious misconduct; termination may only take effect after maternity leave ends.
Employees with at least 54 days of social security contributions in the previous 10 months qualify for maternity benefits covering 14 weeks at 100% of the worker’s average wage over the prior six months.
For 12 months after returning to work, mothers are entitled to two 30-minute breastfeeding breaks per day.
Paternity Leave
Fathers are entitled to three days of paid leave for the birth of their child. These days do not need to be taken consecutively but must be used within one month of the birth. The employer pays these days and is reimbursed by the National Social Security Fund.
Other Types of Leave
Personal Leave entitlements include:
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Employee’s own marriage: Four days off (two paid)
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Marriage of a child or stepchild: Two days off
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Death of spouse, child, grandchild, parent, or stepchild: Three days off (one paid)
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Death of a sibling or a sibling/parent of the spouse: Two days off
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Circumcision of a child: Two days off
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Surgery of a spouse or dependent child: Two days off
Termination and Offboarding in Morocco
Morocco provides defined procedures for how employment must end. Below is a breakdown of the notice rules, severance entitlements, and documentation required for compliant offboarding.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Morocco Employee Resignation
Notice
Form
The employee must provide written notice to the employer before resigning.
Notice period
Notice periods depend on the employee’s length of service:
| Category | Length of Service | Notice Period |
|---|---|---|
| Non-Cadre (Employé / Ouvrier) | Less than one year | Eight days |
| From one to five years | One month | |
| More than five years | Two months | |
| Cadre (Manager / Executive) | Less than one year | One month |
| From one to five years | Two months | |
| More than five years | Three months |
Failure to respect the notice period may lead to compensation equivalent to the notice duration.
An employee may terminate the employment contract without prior notice in the event of:
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A grave insult
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Physical assault or aggression
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Incidents of sexual harassment
Payment in lieu of notice or notice waiver
permitted by agreement between parties.
End-of-Service Benefits
Severance/Gratuity
Generally, no severance pay is due for voluntary resignation, unless otherwise specified in contract or collective agreement.
Other Benefits
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Payment for unused paid leave
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Payment of any outstanding salary, bonuses, or accrued benefits
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Settlement of social security and other statutory contributions up to the last working day
Termination Documentation
Employer must provide:
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Work certificate (certificat de travail).
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Employment certificate (attestation de travail).
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Final settlement document (solde de tout compte), signed by both parties.
Employer Termination With Cause in Morocco
Acceptable grounds
Grounds for terminations with cause due to serious misconduct (licenciement pour faute grave) include:
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Revealing a trade secret that harms the employer
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Theft
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Breach of trust
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Being intoxicated or using illegal drugs in public
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Physical assault
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Serious verbal abuse
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Intentional and unjustified refusal to carry out assigned duties
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Unjustified absence exceeding four days or eight half-days within a 12-month period
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Severe damage to equipment, machinery, or raw materials caused intentionally or through gross negligence
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Significant harm to company property caused by the employee
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Disregarding safety protocols resulting in substantial harm
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Any act of violence or assault against a coworker, the employer, or a company representative that disrupts business operations
Notice
Form
Written notification specifying the cause of dismissal must be provided to the employee.
Notice period
An employee may be terminated without notice in cases of serious misconduct. The dismissal is immediate.
Payment in lieu of notice or notice waiver
Not applicable.
End-of-Service Benefits
Severance
An employee may be terminated without severance compensation in cases of serious misconduct.
Other Benefits
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Payment of accrued but unused paid leave. For this purpose, even a partial month of work is treated as a full month when calculating the amount of leave owed.
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Payment of outstanding salary up to termination date.
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Social security contributions remain payable up to the last day of employment.
Termination Documentation
Employer must provide:
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Written dismissal letter clearly stating the reasons
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Work certificate (certificat de travail)
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Employment certificate (attestation de travail)
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Final settlement document (solde de tout compte), signed by both parties
Employer Termination Without Cause in Morocco
Acceptable Grounds
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Termination without cause (licenciement sans faute) is allowed for economic reasons, organizational changes, or when the employer no longer requires the employee’s services, provided it is not due to misconduct (Article 34 & 35, Moroccan Labor Code).
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The employer must justify the termination with legitimate reasons such as economic difficulties, restructuring, or job elimination. The employer must follow proper procedures and provide proof if challenged.
Form
Written notice must be provided to the employee clearly stating the reason for termination.
Notice period
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During the trial (probation) period, either party may terminate without notice or severance.
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After the trial period,
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Non-Cadre (Employé / Ouvrier)
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Less than one year: Eight days
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From one to five years: One month
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More than five years: Two months
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Cadre (Manager / Executive)
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Less than one year: One month
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From one to five years: Two months
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More than five years: Three months
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Payment in lieu of notice or notice waiver
The employer may choose to pay the employee instead of requiring them to work during the notice period. This payment equals the salary and benefits for the notice period.
End-of-Service Benefits
Severance
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Employees working under an indefinite-term contract are eligible for severance pay upon termination if they have completed at least six months with the company. Severance is calculated as follows:
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Up to five years of service: 96 hours of pay
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Six to 10 years of service: 144 hours of pay
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11 to 15 years of service: 192 hours of pay
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more than 15 years of service: 240 hours of pay
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The severance amount is based on the employee’s average salary over the previous 52 weeks and must not fall below the legal minimum wage.
Other Benefits
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The employer must pay for any unused paid leave, and treat even a partial month of work as a full month when calculating the leave owed.
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Outstanding salary, bonuses, and any other contractual benefits.
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Social security and statutory contributions must be up to date.
Termination Documentation
Employer must provide:
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Written dismissal letter specifying grounds.
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Work certificate (certificat de travail).
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Employment certificate (attestation de travail).
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Final settlement document (solde de tout compte), signed by both parties.
Mutual Termination Agreements in Morocco
MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent. It is called “Contrat de Rupture Conventionnelle” in Morocco and must be formalized by a Labour Inspector.
Notice
Form
Must be a written, mutual agreement signed by both employer and employee before a labour inspector.
Notice period
There is no fixed legal notice period, but the parties typically agree on a timeframe for when the termination will take effect.
Waiver of notice
Notice period can be waived or replaced by agreed compensation in the contract.
End-of-Service Benefits
Severance
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Severance pay and other benefits are negotiated between parties and included in the agreement.
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The severance amount is typically at least equal to the legal severance due for dismissal without cause, but the parties may agree to a higher amount by mutual consent.
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The amount should comply with or exceed minimum legal requirements.
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The severance amount is based on the employee’s average salary over the previous 52 weeks and must not fall below the legal minimum wage.
Other Benefits
Pro-rata bonuses
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Payment for accrued unused leave and any outstanding salary.
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Other benefits (bonuses, indemnities) as agreed in the mutual termination contract.
Termination Documentation
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A formal mutual termination agreement (contrat de rupture conventionnelle) must be drafted and signed.
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Employer must provide work certificate (certificat de travail), employment certificate (attestation de travail), and final settlement document (solde de tout compte).
Offboarding Process for the End of Fixed-term Contracts in Morocco
If the Fixed-Term Contract Ends Normally:
Notice
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No formal notice is legally required when a fixed-term contract expires at its agreed end date.
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The contract naturally terminates without the need for renewal or notice unless parties agree otherwise.
End-of-Service Benefits
Severance/Gratuity
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No severance pay is generally due when a fixed-term contract expires normally.
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If the contract is renewed several times or the employee continues working beyond the end date without a new contract, the arrangement may be treated as an indefinite contract, which can trigger severance rights.
Other Benefits
- Payment for any unused paid leave accrued during the contract term.
- Payment of all outstanding salary and bonuses up to the contract end date.
- Issuance of a work certificate (certificat de travail) and employment certificate (attestation de travail).
If the Employer Terminates Early:
Notice
- Employer must respect the notice period stipulated in the contract, collective agreement, or as per the Labor Code if specified.
- Early termination without cause before contract expiry is allowed only with justified reasons and proper notice.
- Failure to give notice can result in payment in lieu of notice.
End-of-Service Benefits
Severance/Gratuity
- Severance pay may be due if the employer terminates the fixed-term contract early without valid cause. Severance calculation generally follows rules for dismissal without cause, pro-rated to length of service.
- If the employer terminates early without such justification, they must pay the employee compensation equal to the wages and benefits that would have been earned until the contract’s expiry date.
Other Benefits
- Payment of accrued but unused paid leave.
- Outstanding salary and contractual benefits up to termination date.
- Final settlement and social security contributions must be up to date.
Final Payment Timing & Immigration and Visa Compliance in Morocco
Final Payment Deadline
On or immediately after the last working day (generally no more than a few days).
Penalty
Delays may incur labor tribunal sanctions and possible damages awarded to the employee for late payment.
Visa and Immigration Compliance
- For expatriate employees, the employer must notify Moroccan immigration authorities to cancel or update the work visa and residence permit after resignation.
- Expatriates must regularize their status, leave Morocco, or change their visa within the legally required timeframes.
- Failure to comply can result in penalties for both the employer and the employee.
Supporting Guides
Frequently Asked Questions
How does the seniority bonus work?
If an employee’s salary doesn’t already account for seniority (as specified in the contract or collective agreement), you must pay a seniority bonus based on total time worked with you: 5% of annual wages for two to five years, 10% for five to 12 years, 15% for 12 to 20 years, 20% for 20 to 25 years, and 25% for over 25 years. This includes actual hours worked plus annual leave and certain business stoppages.
Why is severance calculated in hours instead of months?
Moroccan law specifies severance for indefinite contracts in hours of pay per year of service: 96 hours (up to five years), 144 hours (six to 10 years), 192 hours (11 to 15 years), or 240 hours (over 15 years). Calculate based on the employee’s average salary over the previous 52 weeks, which must not fall below minimum wage.
What’s the difference between “cadre” and “non-cadre” for notice periods?
“Cadre” refers to managers and executives, while “non-cadre” covers other employees. Cadres get longer notice periods: one month (under one year), two months (one to five years), or three months (over five years). Non-cadres get eight days (under one year), one month (one to five years), or two months (over five years).
