Updated on: 2025/08/05 15:25 (UTC)
Overview
Morocco’s 2003 Labor Code, which consolidated what had been a piecemeal approach to labor law and applies to most workers with employment contracts, provides a floor for benefits and employment conditions, which can be augmented by collective bargaining agreements.
Hiring
Employment Contracts
The employment contract for foreign employees working in Morocco must conform to a model contract prepared by the Ministry of Labor. An employment contract may cover an indefinite period, a fixed term or the performance of a specific task. A fixed-term contract is appropriate to replace a worker who is on suspension, for seasonal work or for a temporary increase in a company’s workload. The maximum length of a fixed-term contract is one year; if the contract is extended beyond that period, it becomes an indefinite-term contract.
A contract of employment can be written or verbal, but the employer must provide the employee with a job card. The job card must contain, among other things:
- the name of the employer,
- the name of the employee,
- the employee’s function and
- the employee’s social security number.
If the contract is in writing, it must be drawn up in duplicate and signed by the employee and the employer. The employee retains a copy.
When there is a change in the legal status or form of the employer—such as its sale, merger or privatization—existing employment contracts remain in force. The new employer must honor the obligations of the previous employer, particularly regarding salaries and paid leave.
An employment contract includes a trial period during which either party may terminate the contract without notice or compensation. The trial periods for contracts of indefinite duration are three months for executives, 1.5 months for salaried employees and 15 days for other workers. The trial period may be renewed once.
Any employer with 10 or more employees must establish, after consultation with employee representatives, a set of work rules and procedures. These should include:
- general provisions for hiring, dismissal, leave and absences;
- provisions relating to the organization of work, discipline and protection of workers’ health and safety and
- provisions on the rehabilitation of employees after industrial accidents or occupational diseases.
The employer is required to display the rules in a common area frequented by employees and in the place where wages are usually paid.
The employer or a representative must establish a location and times to be available to meet with any individual employee at the employee’s request.
Restrictions on Hiring
The minimum working age is 15.
Minors under the age of 18 are not permitted to work in quarries or underground mines or in dangerous locations as defined by the government. Minors under the age of 16 are not permitted to work at night.
Recordkeeping
Employers must keep records that document their compliance with labor laws.
Failure to keep proper records can lead to a fine ranging from 2,000 to 5,000 dirhams.
Background Checks
A criminal record check from the applicant’s home country is required before a residence permit will be granted.
Noncompetition Agreements
Noncompete agreements aimed at preventing, restricting or distorting competition are prohibited in Morocco.
Reference Citations
Employment Contracts: Labor Code, 2003, No. 65-99, §§ 13-18 (French)
Restrictions on Hiring: Labor Code, 2003, No. 65-99, §§ 143-145 (French)
Recordkeeping: Labor Code, 2003, No. 65-99, §§ 279-280 (French)
Immigration and Work Permits
In General
Work and residency visas are required for stays in excess of 90 days.
Visas and Work Permits
The National Agency for the Promotion of Employment and Skills assesses the employment contracts of all foreign nationals working in Morocco to ensure that they comply with the current employment laws and that no Moroccan citizen or permanent resident could have filled the vacancy. U.S. citizens with a valid U.S. passport can enter Morocco for a period of 90 days without a visa. Work and residency visas are required for stays in excess of 90 days.
To apply for a work permit, the prospective employee must submit:
- a completed visa application form;
- a passport, which should be valid for at least six months upon arrival in Morocco;
- a copy of the first three pages of the passport;
- two passport photos;
- a copy of the round-trip plane reservation;
- a copy of the hotel reservation, a notarized letter of invitation from the host in Morocco or, if married to a Moroccan citizen, a copy of his/her passport or national ID card;
- proof of valid health insurance;
- proof of sufficient finances for the length of stay, e.g., bank statements, pay slips, employment contracts, and
- a copy of the employment contract legalized by a local district office.
Residence permits can be obtained from the immigration authorities at a local district police office.
The following documents are required to complete the residence visa process:
- two completed application forms,
- 10 passport photos,
- a work permit,
- a criminal record check from the applicant’s home country,
- a statement from a Moroccan bank as proof of the applicant’s local bank balance and
- a medical certificate completed by a local doctor certifying that the applicant has no contagious diseases.
Each of these documents must be legalized at a local district office and presented in duplicate.
Residence permits are valid for one or two years and may be renewed as many times as necessary.
Family members who wish to live with a working expatriate in Morocco also must obtain residence cards. Spouses or dependents who intend to work in Morocco must independently apply for and receive separate work permits. Children of working expatriates do not need student visas to attend school.
The National Agency for the Promotion of Employment and Skills assesses the employment contracts of all foreign nationals working in Morocco to ensure that they comply with the current employment laws and that no Moroccan citizen or permanent resident could have filled the vacancy.
Reference Citations
Visas and Work Permits: Law Concerning the Entry and Residence of Foreigners in Morocco
Nondiscrimination
In General
Employers may not discriminate on the basis of race, color, sex, disability, marital status, religion, political opinion, union membership, or national or social origin in recruitment, performance and distribution of work, training, salary, promotion, benefits, discipline, and dismissal.
Gender Discrimination
The Labor Code prohibits women from being subject to unequal treatment in compensation and provides them with protections during pregnancy and maternity. The code also defines sexual harassment against any employee as gross misconduct.
Reference Citations
Nondiscrimination: Labor Code, 2003, No. 65-99, §§ 9, 36 (French)
Gender Discrimination: Labor Code, 2003, No. 65-99, §§ 165, 346 (French)
Employee Privacy
Employee Data
Employers must ensure that personal data is:
- processed fairly and lawfully;
- processed for specified and lawful purposes and not beyond;
- adequate, relevant, and not excessive;
- accurate and up to date; and
- kept no longer than necessary.
Employers generally must obtain employees’ consent prior to collecting their personal data, except when the collection is:
- required in order to fulfill a legal obligation;
- needed to protect the vital interests of the employee; or
- required for the execution of a contract.
Employee Monitoring and Surveillance
Moroccan law does not address monitoring and surveillance of employees.
Reference Citations
Employee Data: Law on Processing of Personal Data, 2009 (Arabic)
Compensation
Hours of Work
Normal working hours are generally 2,288 per year or 44 per week. Total work hours may be distributed over the year according to the needs of the employer, provided normal working hours do not exceed 10 per day.
For agricultural employment, working hours are set at 2,496 per year, divided into periods according to the growing cycle of the crops as determined by the government.
In the case of economic crises or other unforeseen circumstances, an employer may reduce normal working hours after consultation with representatives of employees and, if appropriate, representatives of relevant unions, but the reductions cannot be for more than 60 days per year. During such work reductions, workers are paid only for the hours they actually work, subject to a minimum of 50 percent of normal salary.
If a more extended reduction of working hours is necessary, the period of reduction must be fixed by agreement between the employer, employee representatives and, if appropriate, representatives of relevant trade unions.
In the case of accidents or natural disasters, daily work hours may be extended to recover lost time, after consultation with representatives of employees and, if appropriate, representatives of relevant trade unions. The recovery of lost working hours may be authorized for no more than 30 days a year at no more than one hour per day, and the workday cannot be extended beyond 10 hours.
An employee is guaranteed a weekly rest period of at least 24 consecutive hours.
If the business is open every day of the week, a weekend rest day may be rotated among its employees. The weekly rest period may be suspended in cases of emergency. Employees whose weekly rest period has been suspended must be given a compensatory rest period within one month.
Minimum Wage
Effective Sept. 1, 2023, to Dec. 8, 2023, Morocco’s minimum wage is 3,675 MAD per month in public sector, 2,902 MAD per month in private sector. Effective Sept. 1, 2022, the minimum wage was 3,500 MAD ($330) per month in public sector, 2,902 MAD ($275) per month in private sector, 80.54 MAD ($7.60) per day for agricultural workers.
Overtime
The Labor Code permits overtime work if the company performs tasks that are deemed in the national interest or experiences an exceptional increase in its volume of work.
Workers in nonagricultural activities receive a premium of 25 percent for extra hours worked between 6:00 a.m. and 9:00 p.m., 50 percent for hours worked between 9:00 p.m. and 6:00 a.m. These premiums are raised to 50 percent and 100 percent for overtime hours worked on a rest day.
Workers must be compensated for 100 percent of their wage for work on paid holidays and leave days.
Wage Payment
Wages must be paid at least twice a month with no more than 16 days between payments, salaries at least once a month. Employment contracts must specify a date, time and place for wage payment.
All wages must be paid in Moroccan dirhams. Employers must issue a pay slip to employees with each wage payment.
Mandatory Bonuses
When an employee’s salary is not based on seniority (as provided for in the employment contract, internal rules or a collective agreement) they are entitled to a seniority bonus calculated as follows:
- two to five years of service: 5 percent of annual wages;
- five to 12 years of service: 10 percent of annual wages;
- 12 to 20 years of service: 15 percent of annual wages;
- 20 to 25 years of service: 20 percent of annual wages and
- more than 25 years of service: 25 percent of annual wages.
Service is defined as duty, continuous or not, with the same employer.
As well as hours actually worked, the length of service, for the purpose of calculating a seniority bonus, includes:
- annual leave;
- any temporary work stoppage in all or part of the company resulting from a case of force majeure, such as a natural disaster, power outage or shortage of raw materials and
- any temporary closure of business due to a judicial or administrative decision.
Annual wages, for this purpose, include overtime and other compensation with some exclusions.
Reference Citations
Hours of Work: Labor Code, 2003, No. 65-99, §§ 184-188, 205-207 (French)
Overtime: Labor Code, 2003, No. 65-99, §§ 196-201 (French)
Wage Payment: Labor Code, 2003, No. 65-99, §§ 362-363 (French)
Mandatory Bonuses: Labor Code, 2003, No. 65-99, §§ 350, 353 (French)
Benefits
Vacation
Employees are entitled to paid annual leave after six months of continuous service with the same employer at the rate of 1.5 days’ leave for each month of service.
Employees under 18 years of age are entitled to two days’ leave for each month of service.
After five years of service with an employer, a worker’s annual leave increases by 1.5 days a year up to a maximum of 30 days.
If the employee and the employer agree, annual leave may be split up or accumulated over two consecutive years.
Any agreement to forgo the right to paid annual leave is void as a matter of law, even if the worker is compensated for it.
The employer determines dates during which employees can take annual leave after consultation with representatives of the employees and, if appropriate, representatives of the relevant trade unions. Leave dates are set for individual employees by taking into account their seniority and family status.
The annual leave schedule must be communicated to any employee entitled to leave at least 30 days before that employee’s leave begins and must be displayed in the workplace in a location frequented by employees.
Annual leave compensation must be paid no later than the day before the leave begins.
On termination of an employment contract, regardless of the reason, an employee is entitled to receive pay in lieu of annual leave not taken. A partial month’s work is counted as a full month for purposes of calculating leave owed.
If an employee dies, compensation for annual leave not taken is paid to his or her survivors.
Workers are not allowed to work for their employers or any other employers while on annual leave.
Holidays
Workers are entitled to paid time off for holidays. Public holidays that fall on a weekend remain on that day and are not moved to another date. If a business must remain open on a holiday, employees who work are paid double time or may take the extra compensation in the form of a day off.
Employers may require workers to make up hours of lost production because of a holiday, although only after appropriate consultation with representatives of the relevant trade unions. Employers must ensure that the make-up hours are worked within 30 days after the holiday and are paid at regular wage rates.
There are 14 national public holidays in Morocco, four of which are Muslim holidays that do not have fixed dates on the Western calendar.
The holidays with fixed dates are:
- Jan. 1: New Year’s Day
- Jan. 11: Anniversary of the Manifesto of Independence
- Jan. 12 or 13: Amazigh (Berber) New Year
- May 1: Labor Day
- July 30: Throne Day
- Aug. 14: Oued Ed-Dahab Day
- Aug. 20: Revolution of the King and People Day
- Aug. 21: Birthday of King Mohammed VI (Feast of Youth)
- Nov. 6: Feast of the Green March
- Nov. 18: Independence Day
The holidays that do not have fixed dates are:
- Islamic New Year
- Birthday of the Prophet
- Eid al-Fitr (the end of Ramadan)
- Eid al-Adha (Feast of Abraham’s Sacrifice)
Morocco’s labor law prescribes that each of the public holidays last only one day. In practice, however, the Prophet’s birthday and the two Eid holidays are given as two days to employees of the civil service, educational institutions and foreign embassies.
Maternity Leave
An employee may take seven weeks’ maternity leave before her due date and seven weeks’ leave after the birth of a child. If the birth occurs before the due date, leave is extended until the full 14 weeks are taken. Maternity leave may also be extended in cases of medical complications.
An employer may not dismiss an employee because of pregnancy or during maternity leave. An employer may dismiss a pregnant employee for serious misconduct, however, as long as the dismissal does not take effect until the maternity leave is over.
Workers who have at least 54 days of contributions to the social security system over the preceding 10 months are entitled to maternity benefits. Maternity benefits are paid for 14 weeks at 100 percent of the worker’s average wage during the six months before the due date.
During the 12 months after her return to work from maternity leave, an employee is entitled to take two 30-minute breaks—one in the morning and one in the afternoon—to breast-feed her child.
An employer with more than 50 employees must provide special facilities for day care.
Paternity Leave
Working fathers are entitled to three days’ paid leave for the birth of a child. These three days need not be continuous but must be taken within one month after the date of birth.
The employer pays the employee for the leave but is reimbursed by the National Social Security Fund.
Sick Leave
Any employee who cannot work because of illness or an accident must inform the employer within 48 hours. If the absence extends more than four days, the employee must notify the employer of the probable duration of the absence and provide a medical certificate justifying it. The employer may require that the employee be examined by a doctor of the employer’s choice at the employer’s expense.
If an absence due to illness or accident other than an occupational disease or accident extends over 180 consecutive days or if an employee becomes unfit to continue work, the employee can be considered to have resigned.
Sick leave benefits are paid by the National Social Security Fund. To qualify, an employee must have paid into the social security system for at least 54 days over the six months before the illness, although if the absence is because of a non-occupational accident, this requirement is waived. Sick leave benefits are equal to two-thirds of the average monthly wage received in the six months before the claim. The benefits are paid from the fourth day of an illness for up to 52 weeks during the 24 months after the onset of the illness or disability.
Other Leave
Employees are allowed personal leave for:
- an employee’s marriage: four days’ leave, including two days’ paid leave;
- the marriage of an employee’s child or stepchild: two days’ leave;
- the death of an employee’s spouse, child, grandchild, parent or stepchild: three days’ leave, including one day’s paid leave;
- the death of an employee’s sibling or a sibling or parent of the employee’s spouse: two days’ leave;
- circumcision of a child: two days’ leave and
- a spouse or dependent child’s surgery: two days’ leave.
A union representative may with the agreement of the employer take leave to attend training sessions or conferences with national and international unions. Such leave is paid for up to five continuous days per year, although an employer can approve longer periods.
Pensions and Social Security
A worker may retire at age 60 and collect an old-age pension if the worker has at least 3,240 days’ contributions to the social insurance system. The old-age pension is equal to 50 percent of the insured’s average monthly earnings in the 96 months before retirement.
Membership in the social security system is compulsory for all employers, and they are required to register all workers. Foreign workers employed in Morocco participate on the same basis as Moroccan nationals.
Workers’ Compensation
Employees make no contributions to finance the workers’ compensation system. The cost is met through premiums paid by employers to private insurance carriers or through the direct provision of benefits by employers.
Workers’ compensation benefits for a temporary disability are two-thirds of the employee’s earnings. The employer pays the worker’s regular wage for the day the disability occurs, then benefits are paid until the worker either fully recovers or is certified as having a permanent disability. Medical benefits include treatment, surgical and hospital care and medicine.
Benefits for a 100-percent permanent disability are equal to 100 percent of the employee’s average earnings. For partial permanent disability, the benefits are calculated based on the assessed degree of disability.
Reference Citations
Vacation: Labor Code, 2003, No. 65-99, §§ 231-235, 245 (French)
Holidays: Labor Code, 2003, No. 65-99, §§ 217-224 (French)
Maternity Leave: Labor Code, 2003, No. 65-99, §§ 152-162 (French)
Paternity Leave: Labor Code, 2003, No. 65-99, § 269 (French)
Sick Leave: Labor Code, 2003, No. 65-99, §§ 271-273 (French)
Other Leave: Labor Code, 2003, No. 65-99, § 274 (French)
Pensions and Social Security: Caisse Nationale de Sécurité Sociale (CNSS Fund) (Arabic)
Labor Relations
In General
Workers have a constitutional right to belong to a union, and employee delegates must be elected in all businesses with 10 or more employees.
Right to Organize
The Constitution of Morocco and the Labor Code guarantee the freedom of workers to belong to or withdraw from a union. Workers may form one of two types of unions: a trade union for workers in a single profession or occupation or a union for workers in professions or occupations that are similar or connected to one another.
Collective bargaining takes place directly at the enterprise level between employers and unions, at the sector level between employers or professional organizations of employers and trade unions representing the employees in the sector and at the national level between professional organizations of employers and trade unions representing employees nationwide.
A company that is operating under a collective bargaining agreement must display in places where the work is performed and where hiring is done a notice stating the existence of the agreement, its signatories and the filing date. A copy of the agreement must be made available to employees.
Works Councils
Employee delegates must be elected in all businesses with 10 or more employees. The delegates submit to the employer any employee claims related to working conditions.
The number of delegates varies according to the size of the business:
- 10 to 25 employees: one delegate and one alternate delegate;
- 26 to 50 employees: two delegates and two alternates;
- 51 to 100 employees: three delegates and three alternates;
- 101 to 250 employees: five delegates and five alternates;
- 251 to 500 employees: seven delegates and seven alternates and
- 501 to 1,000 employees: nine delegates and nine alternates.
For each additional 500 employees beyond 1,000, one additional delegate and one additional alternate must be added.
The delegates are elected by the employees and meet with their employer or a representative at least once each month or may request a meeting in an emergency.
Dispute Resolution
Collective bargaining agreements can establish their own provisions for the settling of collective labor disputes, but in the absence of such provisions, the parties must adhere to the process laid out in the Labor Code.
Under the code, collective labor disputes are subject to a series of conciliation and arbitration procedures.
When there is a workplace dispute that could turn into a collective labor dispute, the parties must first try to resolve the disputed issues through conciliation before a labor inspection officer if only one company is involved or a regional labor agent if more than one company is involved. If the attempt at conciliation fails, the dispute is submitted to the provincial commission of inquiry and conciliation.
The provincial commission—which is chaired by the governor of the province and composed equally of representatives of the government, organizations of employers and trade unions—is required to attempt to resolve the conflict within six days of its submission. The head of the commission has the power to investigate the matter, and the parties are required to produce documents or information requested by the panel. If no agreement is reached through the provincial commission, the dispute is submitted directly to the national commission of inquiry and conciliation within three days.
The national commission is chaired by the minister of labor or the minister’s representative and is composed equally of representatives of the government, organizations of employers and trade unions. A labor dispute that involves several provinces or the nation may go directly to the national commission for resolution. The national commission has the same powers of investigation as the provincial commissions.
Upon agreement of the parties, the provincial or national commission may submit the dispute to arbitration. The dispute will be assigned to an arbitrator chosen by mutual agreement of the parties from a list maintained by the labor ministry. If the parties fail to agree on the choice of arbitrator, the labor minister will appoint one from the list. Decisions of the arbitrator can be appealed to the Social Chamber of the Moroccan Supreme Court.
Strikes and Lockouts
The constitution guarantees the right to strike. There is very little in the Labor Code about strikes, however, and while the government has been developing a law to govern them, the area is still not well defined in Moroccan law. The Labor Code explicitly prohibits discrimination against any worker based on involvement in union activities and has provisions that prohibit employers from hiring substitute workers.
Successorship Clauses
In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges and duties towards the employees under the collective agreement.
Reference Citations
Right to Organize: Labor Code, 2003, No. 65-99, §§ 9, 36 (French)
Works Councils: Labor Code, 2003, No. 65-99, §§ 186, 464-467, 470 (French)
Dispute Resolution: Labor Code, 2003, No. 65-99, §§ 549-574 (French)
Strikes and Lockouts: Constitution of Morocco, 2011, art. 29 (French)
Successorship Clauses: Labor Code, 2003, No. 65-99, § 19 (French)
Safety, Health and Security
In General
The employer must ensure that the workplace is kept clean and has adequate lighting, heating, ventilation, soundproofing, drinking water, waste disposal, bathrooms, and protections for employees in hazardous environments.
Workplace Safety and Health
Machines must be fitted with protective guards and kept in good repair so that their use does not endanger employees. Protective masks and other safety devices must be provided to employees required to work in areas that may contain hazardous or dangerous substances, and the employer must display information on the safe operation of equipment at the worksite in a place frequented by employees.
The disabling of safety devices on machinery by an employee is considered serious misconduct that could lead to dismissal without notice or severance pay.
Time spent by employees in complying with hygiene measures that are imposed by the employer or by regulation must be paid by the employer as working time.
Reference Citations
Workplace Safety and Health: Labor Code, 2003, No. 65-99, §§ 281-282, 289, 291 (French)
Termination
Termination by Employer
An employer may not terminate an employee on the following grounds:
- union membership;
- participation in union activities outside working hours or with the consent of the employer or in accordance with the collective labor agreement during working hours;
- standing as a candidate for employee delegate;
- filing a complaint or participating in a legal action against the employer under the provisions of the Labor Code;
- race, color, sex, marital status, family responsibilities, religion, political opinion or national or social origin or
- a disability that does not preclude the employee from working in the company.
In a case of serious misconduct, the employee may be dismissed without notice or severance pay. Serious misconduct that may serve as the grounds for termination includes:
- disclosure of a trade secret causing injury to the employer;
- theft;
- abuse of trust;
- public drunkenness or consumption of illegal drugs;
- physical aggression;
- a serious insult;
- a deliberate and unjustified refusal to perform one’s duties;
- an unjustified absence of more than four days or eight half-days during a period of 12 months;
- major deterioration of equipment, machinery or raw materials caused either deliberately by an employee or as a result of gross negligence;
- significant damage to the company’s property caused by the employee;
- a failure by the employee to follow safety instructions that results in considerable damage or
- any form of violence or assault against another employee, the employer or an employer representative that is detrimental to the operation of the business.
In case of wrongful breach of contract by either party, the injured party has the right to claim damages. The parties may not waive in advance any right to claim damages.
Before dismissal, an employee must be given an opportunity to defend against the charges and be heard by the employer or an employer representative in the presence of a representative of the employees or the union.
Employees may pursue conciliation or arbitration if they believe a dismissal was for improper reasons and may seek to be reinstated or make a claim for damages. If the employee is not satisfied with the result of conciliation or arbitration, the case may be taken to court.
The employer must issue the employee a certificate of employment within eight days after termination of the employment contract or face a possible fine. The employment certificate must indicate the employee’s start date and the jobs held in the company. By agreement between the company and the worker, the certificate also may include references to professional qualifications of the employee and the services rendered.
The employer must also issue a receipt for any final payments made to the employee. The employee’s signature on the receipt must be preceded by the words “read and approved.” If the employee is illiterate, the receipt must be countersigned by a government work inspector.
An employment contract includes a trial period during which either party may terminate the contract without notice or compensation. The trial periods for contracts of indefinite duration are three months for executives, 1.5 months for salaried employees and 15 days for other workers. The trial period may be renewed once.
Termination by Employee
An employee is entitled to terminate the employment contract without notice on the following grounds:
- a serious insult,
- violence or aggression against the employee or
- sexual harassment.
Plant Closings and Mass Layoffs
An employer with 10 or more employees that is considering the dismissal of all or some of the employees due to closure of the business or for technological, structural or economic reasons must notify employee representatives and, if appropriate, union representatives at least one month prior to termination. The employer is required to explain the grounds for dismissal, the number and categories of employees involved, and the timetable for dismissals.
The employer must negotiate and consult with worker representatives on measures to prevent dismissal or to minimize adverse effects, including the possibility of reassigning employees to other posts. The employer and the employees may also have recourse to conciliation or arbitration.
The dismissal plan is subject to review by provincial government authorities.
Payment on Termination
A person employed under a contract of indefinite duration is entitled to severance pay at termination if the worker has been at the company at least six months. The amount of severance pay is calculated as follows:
- up to five years’ service: 96 hours’ pay;
- six to 10 years’ service: 144 hours’ pay;
- 11 to 15 years’ service: 192 hours’ pay and
- more than 15 years’ service: 240 hours’ pay.
Severance pay is calculated on the basis of average salary during the previous 52 weeks but must be at least the minimum wage.
On termination of an employment contract, regardless of the reason, an employee is entitled to receive pay in lieu of annual leave not taken. A partial month’s work is counted as a full month for purposes of calculating leave owed.
Unemployment Insurance
Unemployed workers are eligible for allowances of up to 70 percent of their average monthly earnings over the 36 months prior to termination.
The allowances, which applicants can receive for a period of up to six months, cannot exceed the statutory minimum wage.
To qualify for unemployment benefits, laid-off workers must:
- have lost their jobs involuntarily for economic or technical reasons;
- made 780 days’ contributions to the social security fund during the three years preceding layoff, 260 within the year preceding dismissal;
- be registered as a job seeker;
- be registered with the National Agency for the Promotion of Employment and Skills to receive help in returning to the workforce;
- be able to do work and
- not be entitled to a disability or retirement pension.
The employer’s contribution to the unemployment fund is 0.38 percent of its social insurance liability. Employees must contribute 0.19 percent of the first 6,000dirhams of salary.
Reference Citations
Termination by Employer: Labor Code, 2003, No. 65-99, §§ 13-14, 33-39 (French)
Termination by Employee: Labor Code, 2003, No. 65-99, § 40 (French)
Plant Closings and Mass Layoffs: Labor Code, 2003, No. 65-99, § 66 (French)
Payment on Termination: Labor Code, 2003, No. 65-99, §§ 52-58 (French)
Unemployment Insurance: Job Loss Allowance Law, 2014, art. 46 (French)
Personal Taxes
Residency Requirements
Individuals are deemed to be residents of Morocco for tax purposes if:
- their permanent home is in Morocco,
- their center of economic interest is in Morocco or
- they are present in Morocco for at least 183 days in any 365-day period.
Taxable Income
Residents are subject to tax on their worldwide income. Nonresidents are taxed only on Moroccan-source income.
In general, all types of remuneration and benefits received by an employee for services rendered are deemed taxable income, including salaries and wages, allowances, pensions, annuities, all other employment benefits and income derived from the carrying out of a business or profession.
More specifically, this includes:
- family allowances,
- workers’ compensation payments for industrial accidents or death,
- allowances for professional expenses,
- retirement benefits and severance pay,
- alimony,
- supplementary pension payments,
- compensation for pregnancy and
- literary and art awards amounting to a maximum of 100,000 dirhams per year.
In-kind compensation is taxed at ordinary rates unless it qualifies as expenses necessary for the job, housing allowances are fully taxable and company cars are fully taxable unless the job requires frequent travelling.
Employees are entitled to deduct an allowance of up to 30,000 dirhams annually for professional expenses.
Tax Rates
Personal income above 30,000 dirhams is taxed on a progressive scale from 10 percent to 38 percent depending on annual income.
Reference Citations
Residency Requirements: Morocco Tax Code, 2007, Art. 23 (French)
Taxable Income: Morocco Tax Code, 2007, Art. 57 (French)
Web References
Law and Regulation
In French.
Constitution of Morocco
Labor Code 2003
Government Websites and Publications
In French, unless otherwise noted.
Kingdom of Morocco, High Commission of Planning
Ministry of Employment and Vocational Training
National Portal of Morocco (English)
Social Security Fund