As of March 2024, the estimated population of Morocco is 37,840,044.
The currency in Morocco is the Moroccan Dirham (MAD). The currency symbol is DH.
In Morocco, indefinite-term contracts are agreements for employees whose work does not fall under conditions for fixed-term or specific work contracts and are considered permanent. They are concluded for jobs of a permanent nature. Indefinite term contracts may include a probationary period. Permanent employees are entitled to severance pay upon dismissal after working 6 months with the same employer.
According to Morocco's Labor Code, indefinite-term employment contracts don't need to be in writing. Fixed-term contracts must be drawn up in writing, clearly specifying their end date or project completion condition. If the employment contract is concluded in writing, it must be drawn up in two copies, signed by the employee and the employer, and validated by the competent authority. A written contract must specify the notice period and probationary period. Employers are also required to provide a written statement to employees at the time of hiring that includes information on working time, weekly rests, wages, etc. While the Labor Code of Morocco does not include any provisions on non-competition clauses applicable after termination of employment, the Court of Cassation has maintained that non-competition clauses can be included in employment contracts if they are justified by the requirement to protect the employer’s interest and are limited in terms of time, geographical area, and scope of activity. Proving a violation of the agreed-upon non-competition clause makes the employee liable to their employer for the damage caused to them as a result of unfair competition. Employers can compensate the employee during the period of restriction.
In Morocco, Labor Code allows private recruitment agencies to hire employees and make them temporarily available to third-party "users" who set their tasks and control performance. A temporary employment contract can be concluded for 3 months (renewable once) or 6 months (non-renewable). Temporary employment contracts can only be used to replace an absent or suspended employee, resolve a need for additional staff caused by a temporary increase in the business's activity, provide seasonal labor, or complete tasks not customarily considered suitable for an employment contract of an indefinite period. The user company must take all preventive and protective measures to protect its temporary employees' health and safety.
The length of the probationary period varies according to the type of contract and depends on the category of employees. For contracts of an indefinite duration: Executives - 3 months Office workers - 1.5 months Manual workers - 15 days For fixed-term contracts: 1 day per workweek up to 2 weeks for contracts of less than 6 months 1 month for contracts of more than 6 months. During the probationary period, any party can terminate the employment contract of their own free will without notice or compensation. However, if an employee has worked for a week, and unless the employee committed a serious mistake, the employer has to give a notice of 2 days for daily, weekly, or fortnightly wage earners and 8 days for monthly wage earners before terminating the employment contract.
The Labor Code of Morocco stipulates that the regular hours of work must not exceed 10 hours per day. When employees are needed during periods of unusual activity or intermittent work, the workday can temporarily be extended to 12 hours. There are 44 hours in a workweek (typically 2,288 hours per year) for non-agricultural activities. For agricultural activities, the regular number of hours worked annually is 2,496. If work is stopped collectively or partly due to an accident or force majeure, daily working hours may be extended to make up for the lost work hours. However, before doing so, employees and trade union representatives (if applicable) must be consulted. It is prohibited to work for more than 30 days in a year to make up for lost hours. Extensions cannot exceed 1 hour per day.
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In Morocco, the Labor Code guarantees employees a leave of 1.5 days for each month of service after 6 months of continuous employment with the same employer, unless more favorable terms are outlined in the contract. After five years of service, the number of days of paid leave increases by 1.5 days for each full employment period of five continuous or non-continuous years, up to a total of 30 days. Minor employees under the age of 18 years are entitled to 2 days of annual leave per month. Annual leave can be divided into parts or carried over two years by agreement between the employee and the employer. Annual leave is paid at employees' rate of usual remuneration at least the day before the leave starts. If the employment contract is terminated before the employee could enjoy their annual leave, they are eligible to receive compensation for the remaining leave regardless of the reasons that led to the termination of the employment contract.
In Morocco, sick leave is partially paid. The Labor Code does not provide for the accrual of sick leave. The first 3 days are unpaid. From day 4 onwards, the National Social Security Fund (CNSS) pays a daily benefit equal to two-thirds of the reference daily wage. Employee must have paid at least 54 days of CNSS contributions during the 6 months preceding the start of the sickness. Short-term sickness benefits are payable for up to 52 weeks. In cases of long-term illness, benefits may be extended subject to medical re-evaluation. If the employee is absent for more than 180 consecutive days during any 1-year period, the employer is entitled to treat the employee as having resigned. An employee who cannot work because of illness must inform the employer and justify their absence within 48 hours. A medical certificate must be provided if the absence is longer than 4 days.
The Labor Code of Morocco grants pregnant employees 14 weeks of fully paid maternity leave. The leave is expected to begin 7 weeks before the delivery date, and the remaining 7 weeks are used after birth. Maternity leave can be extended to 8 weeks before and 14 weeks after delivery if medically necessary (a medical certificate must be presented). Employees must notify their employers at least 15 days before ending their maternity leave. The CNSS pays the maternity benefit at 100% of the employee's average daily wage during the 6 months preceding the expected delivery date, subject to a ceiling of MAD 6,000 (Moroccan Dirhams) per month. The benefit is paid for the full 14 weeks of statutory maternity leave. To qualify, the employee must have made at least 54 days of CNSS contributions during the 10 months preceding the expected delivery date. Employers have the right to suspend the employment contract during maternity leave, but are prohibited from terminating an employee's employment contract while she is on maternity leave.
A father is entitled to 3 days of leave for a child's birth once he accepts the child's paternity. Paternity leave is fully paid and can be continuous or discontinuous. It must be taken within 1 month of birth. The leave is paid by the employer, who is reimbursed by the National Social Security Fund.
After the first week of employment, a notice period is required to terminate the employment contract. If the employee is paid by the day/week/fortnight, only 2 days' notice is required. If the employee is paid monthly, then 8 days' notice is required. When the employee is dismissed after the probationary period's expiry without serious misconduct, the notice period must be at least 8 days. Termination without notice or before the term of expiry leads to compensation from the responsible party. Employees are entitled to a daily break of up to 2 hours per day, not exceeding 8 hours per week, during their notice period to search for another job.
A permanent employee who has worked for at least 6 months is entitled to receive severance pay upon their dismissal as follows: 96 hours of salary for the first five years of service 144 hours of salary for the seniority period between the sixth and tenth year 192 hours of salary from 11th to 15th year of service 240 hours of salary for the service period exceeding 15 years. Severance pay is increased by 100% for a trade union representative dismissed during their tenure. Employees dismissed for disciplinary issues are not entitled to any severance pay.
The retirement age is 60 years. Employees who have worked in the mines for at least 5 years retire at the age of 55. Employees under 60 qualify for a minimum pension if they have worked for at least 1,320 days, and not more than 3,240 days. The pension ranges from MAD 600 (Moroccan Dirhams) to MAD 1,000 per month, depending on the number of days accumulated. The pension amount is equal to 50% of the average monthly wage for the first 3,240 days of insurance and is increased by 1% for each 216 day period of insurance after 3,240 days. The maximum pension is limited to 70% of the average monthly wage. The minimum monthly pension is MAD 1,000 (Moroccan dirhams). If the insured employee does not fulfill the eligibility requirements for pension at the time of retirement, they can receive all the contributions made to the fund and the accumulated interest. Both employers and employees make contributions.
The widow or widower of the insured and surviving children under the age of 16 are entitled to survivors’ benefits. Children under 18 are still eligible if apprenticed or students up to the age of 21 years. There is no age limit for survivors' benefits eligibility if a child is disabled. Spouses receive 50% of the pension to which the deceased employed was entitled. If there is more than one spouse, the pension is split equally among them. Each dependent child receives 25% of the pension to which the deceased employed was entitled, limited to a maximum of 50%. A child who has lost both parents receives 50% of the pension. In addition to the pension, the survivors also receive a death grant ranging from MAD 10,000 to 12,000 (Moroccan dirhams).
In Morocco, the Caisse Nationale de Sécurité Sociale (CNSS) covers disability benefits for insured employees who have a permanent disability resulting from a non-work-related accident or disease. The insured person must have paid 1,080 days of contribution, including 108 days in the 12 months before the onset of disability. The pension is equal to 50% of the insured's average monthly wage for 1,080 to 3,240 days of contribution, plus a 1% increment for every 216-day period of contribution beyond 3,240 days, limited to a maximum of 70% of the average monthly wage. There is also a constant-attendance supplement of 10% of the average monthly salary paid to those who require another person's constant assistance. Sources of funds are the contributions made by both employees and employers. In case of disability due to work-related accidents or illness, benefits are paid by employers. Accidents that occur while traveling to and from work are covered. Employers also bear the cost of medical treatment, diagnostic tests, medical supplies, transportation, etc. in case of work accidents.
Residents are taxed on their income and earnings from Morocco or foreign sources, while non-residents are taxed only on income sourced in Morocco. The tax assessment year runs from January 1 to December 31. Current income tax rates are progressive and range from 0 to 37% based on the income level and whether the income falls into special categories such as investments, bonuses, etc.
Morocco offers the following types of visas to visitors:
A foreign employee must apply for a Moroccan residence title at the local police prefecture (DGSN) or Royal Gendarmerie office where they live after entering the country. Filing must take place before their entry visa expires or—if visa-exempt—within 90 days of entry. The employee must submit the official residence application form plus supporting documents for a work stay, notably an approved employment contract, and if their nationality requires a visa, the entry visa should be marked “for work.” After filing the application, the authorities give a temporary receipt (récépissé) that legalizes the stay while the application is processed and can be renewed every 3 months until a decision is rendered. The validity of the residence permit depends on the reason for stay and the documents provided. Before applying for a work-residence permit, foreign hires must generally have their employment contract approved by the National Agency for the Promotion of Employment and Skills (Agence Nationale de Promotion de l'Emploi et des Compétences, ANAPEC). ANAPEC verifies that no qualified Moroccan candidate is available for the position. Exemptions apply to certain categories (e.g. senior management of foreign-invested companies, intra-corporate transfers, certain trade-agreement nationals). The contract must then be visa-stamped by the Department of Employment before the residence permit application.
