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 the Republic of Morocco, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.
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%
What type of leave is allowed in Morocco:
- Annual leave – Paid leave granted at 2 days per month or 24 working days per year.
- 13 Public Holiday per annum as per Morocco Leave Laws
- Maternity leave – leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.
- Paternity leave – Immediately after delivery or miscarriage entitled to 3 working days leave from work.
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.
What are the Employer & Employee contributions in Morocco:
- Family Allocation (Employer 6.40%)
- Social Security Contribution (Employer 8.60% &Employee 4.29%)
- Mandatory medical care (Employer 4.11% & Employee 2.26%)
IS THERE GRATUITY PAYMENTS FOR TERMINATION in 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
What Double Tax Treaties are in place
- South Africa
- United Kingdom
Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Morocco.