Morocco Employer of Record & Payroll
Africa Deployments Morocco offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Morocco for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Morocco.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. Morocco, officially a constitutional monarchy, is a wonderfully diverse country both geographically and culturally, located on the northwest coast of Africa. Bordering both the Atlantic Ocean and Mediterranean Sea, Morocco has 1930kms of coastline and is blessed with some of the world’s most beautiful beaches and idyllic resort towns. Contrastingly Morocco also has the highest snow ski resort in Africa (Oukaimeden), found within the Atlas mountains, which extend ± 1000 kms across east Morocco and the Sahara desert. Rabat is the capital city, but Marrakesh and Meknes have also previously been Morocco’s capitals. The port city of Casablanca (on the east coast) known as ‘the white city’ is the largest city in North Africa and the economic and financial capital of Morocco. Morocco has delicious and interesting cuisine, and amazing architecture, illuminating history at every turn – in mosques, tombs, arches, street engravings etc. Fes, in northeast Morocco – is the cultural capital within towering 10-mile-long walls. Morocco’s population of ±38 million are known for their warm hospitality, especially at the medinas, mosques, souks / markets (and more).What is the main language spoken in Morocco:
Arabic, along with Berber, is one of Morocco’s two official languages, although it is the Moroccan dialect of Arabic, namely Darija, meaning “everyday” that is the lingua franca.
Approximately the split is: 98% of Moroccans speak Moroccan Arabic, 63% French, 26% Berber, 14% English, and 10% speak Spanish.
What type of employment contracts can you offer in Morocco:
Through our employer of record (EOR) solutions in Morocco, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 months [maximum]
WHAT INCOME IS TAXABLE IN Morocco:
Any individual who works and lives in Ghana for more the 183 days a year will be subject to local taxes in Morocco. They maintain a permanent home in Morocco. The tax years from effectively from 28 February to 01 January the following year. They may not be present for more than 122 days in the tax year and the two preceding tax years after that.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Morocco:
- Net taxable Income which is less than MAD 30 000 per month is not taxable.
- Emoluments payable to employees of the East African Development Bank with effect from 01st July 1997
- Retirement Contributions
- Lump sum deductions of 20%
Standard working hours: Number Overtime to be paid?
Maximum working hours:
- The maximum working hours allowed per day are 8 hours, and per week are 48 hours.
- Maximum daily overtime: Employees should not exceed 2 hours of overtime per day.
- Maximum yearly overtime: Employees should not exceed 80 hours of overtime per year.
- Daytime shift (6 am – 9 pm): Overtime compensation is 125% of the basic salary.
- Nighttime shift (9 pm – 6 am): Overtime compensation is 150% of the basic salary.
- Daytime shift: Overtime compensation is 150% of the basic salary.
- Nighttime shift: Overtime compensation is 200% of the basic salary.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Family allocation |
– |
– |
|
Social allocation |
4.48% |
6,000 |
|
Professional training |
– |
– |
|
Mandatory medical care |
2.26% |
– |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Family allocation |
6.40% |
– |
|
Social allocation |
8.98% |
6,000 |
|
Professional training |
1.60% |
– |
|
Mandatory medical care |
4.11% |
– |
Social
| Contribution Type | Employee | Employer |
|---|---|---|
|
Family allocation |
– |
6.40% |
|
Social allocation |
4.48% |
8.98% |
|
Professional training |
– |
1.60% |
|
Mandatory medical care |
2.26% |
4.11% |
What is the Maternity and Paternity policy within Morocco:
Maternal leave:
- leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.
Paternal leave:
- Immediately after delivery or miscarriage entitled to 3 working days leave from work.
What type of leave is allowed in Morocco:
Annual leave
- Paid leave granted at 2 days per month or 24 working days per year.
- Employees are entitled to four days (or eight half days) of paid sick leave per year. If the absence exceeds four days, the employee must inform the employer of the expected duration and provide a medical certificate. If an employee has more than 180 consecutive days of sick leave in one year, the employer may request their resignation.
Do I need to pay a mandatory bonus annually OR is it discretionary in Morocco:
There is no statutory requirement to pay a 13th or 14th month salary / bonus, however, in Morocco employers must pay [a] seniority bonus/es as follows:
- 5% of salary after two years’ service;
- 10% after five years;
- 15% after 12 years and
- 20% after 20 years.
What Gratuity / Severance payments do you need to provide for Morocco:
End of Service Indemnity:
- Upon termination of employment, employees are entitled to receive an end of service indemnity.
- The end of service indemnity is based on the employee’s length of service and their basic salary.
- The calculation of the indemnity is as follows:
- For the first 5 years of service: 1 month’s salary for each year of service.
- For each subsequent year of service beyond the initial 5 years: 1.25 month’s salary for each year.
- The indemnity is prorated for incomplete years of service.
- There is a maximum limit of 24 months’ salary for the end of service indemnity.
- If an employee is unfairly dismissed without just cause, they are entitled to additional compensation.
- The compensation amount is equal to one month’s salary for each year of service, with a maximum limit of 36 months’ salary.
CAN YOU GIVE FRINGE BENEFITS IN Morocco:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Morocco:
- On termination, employees are generally eligible for a severance payment based on their length of service and hours of pay.
- Severance pay is due after 6 months of service
- It corresponds to a number of hours per year that varies according to the length of service:
- 96 hours pay per year for the first 5 years
- 144 hours per year between the 6th and the 10th year
- 92 hours per year between the 11th and the 15th year
- 240 hours after the 15th year
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Morocco:
Corporate Tax Rates: 20% [in general]
VAT / Sales Tax Rates: 20% [on most goods and services]
Public Holidays in Morocco:
- January 1 - New Year's Day
- January 11 - Proclamation of Independence
- April 22 - Eid Sghir
- April 23 - Eid Sghir Holiday
- April 24 - Eid Sghir Holiday
- May 01 - Labour Day
- June 29 - Eid Kbir
- June 30 - Eid Kbir Holiday
- July 19 - Fatih Muharram
- July 30 - Enthronement
- August 14 - Oued Ed-Dahab Day
- August 20 - Revolution Day
- August 21 - Youth Day
- September 27 - Eid Al Mawled
- November 06 - Green March Day
- November 18 - Independence Day
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What Industries we support in Morocco:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
