Currency
Moroccan Dirham (MAD)
EOR IN Morocco
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A guide to employing and growing your team in Morocco
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Morocco has grown to Africa’s fifth-largest economy, built on a robust tourist industry, agriculture, and a foray into renewable energy. Morocco’s employment landscape is governed by the Labor Code of 2003. In 2026, the country has finalized major phases of its labor reform, specifically targeting social protection and wage increases. According to Remote.com, Morocco requires written contracts (though verbal are legally recognized, they are not recommended). As of January 1, 2026, the national minimum wage (SMIG) for non-agricultural sectors is MAD 3,422.72 per month (approximately MAD 17.92 per hour). For the agricultural sector, the minimum wage (SMAG) is MAD 93 per day.
Employer Contributions
Social Security (CNSS): 6.40% (Family allowances, no cap)
Social Benefits: 8.98% (Capped at a salary of MAD 6,000/month)
Mandatory Health Insurance (AMO): 4.11% (No cap)
Vocational Training Tax: 1.6% (No cap)
Total Employer Contribution: ~21.09% – 25.5%
Employee Payroll Taxes
Social Security (CNSS): 4.48% (Capped at MAD 6,000/month)
Mandatory Health Insurance (AMO): 2.26% (No cap)
Income Tax (IR): Variable (Progressive brackets)
Total Employee Contribution: 6.74%
Employee Income Tax Rates
Morocco uses a progressive tax system. In 2026, the government increased the tax-free threshold and enhanced deductions for dependents to ease the burden on households.
Up to MAD 40,000 (Annual): 0%
MAD 40,001 – MAD 60,000: 10%
MAD 60,001 – MAD 80,000: 20%
MAD 80,001 – MAD 100,000: 30%
MAD 100,001 – MAD 180,000: 34%
Above MAD 180,000: 37%
Statutory Leave
Employees are entitled to 18 working days of paid annual leave after one year of service. This increases by 1.5 days for every five years of seniority, up to a maximum of 30 days. Morocco observes 13 to 17 public holidays annually, depending on the religious calendar.
Pregnancy and Maternity Leave
Female employees are entitled to three months (90 calendar days) of fully paid maternity leave. To qualify, the employee must provide at least seven days’ written notice before proceeding on leave. Taking maternity leave does not reduce an employee’s right to her 21 days of annual leave. Upon return, she is entitled to resume her previous role or a similar one with the same pay and working conditions.
Paternity Leave
Male employees are entitled to two weeks (14 calendar days) of fully paid paternity leave. This leave must be granted without loss of any other leave entitlements and is typically taken immediately following the birth of the child.
Work-Related Injury Leave
Sick Leave: After two consecutive months of service, an employee is entitled to 7 days at full pay and 7 days at half pay per year, provided they submit a medical certificate of incapacity.
Pre-adoptive Leave: Adoptive parents are entitled to one month of fully paid leave from the date a child is placed in their care, provided they give the employer 14 days’ notice.
Compassionate Leave: This is often deducted from the annual leave entitlement and is used for unplanned misfortunes like the death of a relative.
Termination Process
Dismissal must be justified (misconduct, incompetence, or economic redundancy). For serious misconduct, a formal preliminary interview must be held where the employee can defend themselves. Employees with at least 6 months of service are entitled to statutory severance pay, which scales with seniority (e.g., 96 hours of pay per year for the first 5 years).
Notice Period
Notice periods are generally governed by the employment contract but must meet statutory minimums:
Monthly Contracts: 1 month notice or 1 month’s salary in lieu of notice.
Longer Tenure: Often 1 to 3 months depending on the role and contract terms.
Probation Period
The standard probation period is 3 to 6 months, though technical or senior roles can legally extend to 12 months with written consent. During probation, the contract can be terminated by either party with a shorter notice period, which is typically 7 days as specified in the contract.