Capital
Rabat Currency
Moroccan dirham (MAD) Languages
Moroccan Arabic, French Payroll Frequency
N/AGDP per Capita
$ 332 million (2019) Employer Tax
N/A Employer Of Record In Morocco
You may easily grow your company without being hampered by Morocco’s convoluted employment regulations thanks to our efficient EOR solution. Without your having to set up a separate legal business, we can handle all of your hiring needs as well as payroll administration, personnel management, probation, regulation, and compliance with provincial regulations. To find out how to grow into Morocco without any problems, contact our specialists right away.
Overview of Morocco
This North African nation is situated on the Mediterranean Sea and Atlantic Ocean borders.
- Population: 37 million (2020)
- Currency: Moroccan dirham (MAD)
- Capital city: Rabat
- Language: Moroccan Arabic, French
- GDP: $ 332 million (2019)
Employment Landscape in Morocco
For both domestic and international employees, the Ministry of Labor has established contracts, and it oversees them to ensure that the rules are fulfilled.
In order to comprehend rights such as employee benefits, working hours, paid time off, national holidays, etc., let’s take a quick look at Morocco’s employment laws.
| employment contract Morocco | The employment contract stipulates that the international employment contract must adhere to the guidelines established by the Ministry of Labor. An organisation that makes sure the overseas employment contract complies with established legislation is the National Agency for Promotion of Employment and Skills (ANAPEC). Additionally, it makes sure that foreign workers are only employed when locals are unable to fill the open positions. |
| Moroccan Compensation laws | The minimum wage is the only legal pay regulation standard in Morocco. The payment guidelines and amount are entirely up to the employee. |
| Standard working hours | No more than 8 hours per day or 48 hours per week should be worked. A working month is made up of 191 hours or twenty-six (26) days.
Employees should not work more than 2 hours of overtime per day or 80 hours per year, according to the Moroccan employment contract. The overtime pay is 125% of the basic wage for the day shift (6 am–9 pm) and 150% for the night shift (9 pm–6 am). Weekend and holiday overtime rates are 150% during the day and 200% at night. Employees should not work more than 2 hours of overtime per day or 80 hours per year, according to the Moroccan employment contract. The overtime pay is 125% of the basic wage for the day shift (6 am–9 pm) and 150% for the night shift. |
| Forms of wages | Employees must get their paychecks twice a month and obtain a salary receipt for their records. Additionally, it’s critical for businesses to regularly raise employee salaries and award incentives.
Companies should adhere to the federal minimum wage and think about providing complementary yearly salaries and vacation wages to their employees in order to ensure equitable remuneration. Businesses may create a healthy workplace culture and encourage employee retention by appreciating and investing in their personnel. |
| Employee health benefits Morocco | Organisations with more than 50 workers are required to provide their personnel with free medical care. To guarantee a safe and healthy working environment for its employees, all businesses and organisations must also abide by the nation’s safety rules.
Additionally, female workers are entitled to 14 weeks of paid maternity leave in order to assist their physical and mental health throughout this important life event. Male workers are entitled to up to three days of paid paternity leave to help their partners and spend time with their infant. These regulations show a dedication to work-life harmony and can raise employee satisfaction and retention. |
| Paid time off | Most businesses operate six days per week, with one day off each week for staff. Additionally, employees have the right to paid time off, which is equal to two (2) days every month. |
| Holidays in Morocco | Holidays in Morocco are:
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Contract vs. Full-Time Employee
Fixed-term, indefinite-term, and job-completion workers are the three main worker kinds found in the Moroccan service industry. While indefinite term contracts have no defined end date, they typically have a one-year duration and are renewable once.
A fixed-term contract immediately becomes an indefinite-term contract when an employer’s working agreement ends. Depending on the status of the employee, the contract’s length varies.
Foreign workers are paid twice a month in Moroccan dirhams and are given separate receipts that detail their pay. Based on the employee’s potential, responsibilities, and work efficiency, salaries are subsequently raised.
Contracts cannot be more than three months for managers and one and a half months for employees. Contracts for labourers are limited to 15 days. Employees need to have employment cards, which employers are required to issue and renew annually with the labour office.
The Moroccan employment contract legislation covers the duties and rights of employees, including the right to seek flexible working conditions after 26 weeks, defence against unjust dismissal, and the authority to take action on health and safety concerns
Recruiting in Morocco
In Morocco, it is required to give all employees written contracts that are written in Moroccan Arabic. Fixed-term and indefinite contracts are governed by compliance laws, which include specifics like working conditions, pay, and termination provisions. Two copies of the contract must be signed and validated by the appropriate authority in accordance with compliance rules.
Employers in Morocco advertise open positions on a variety of job search websites, including learn4good ,wzayef ,emploi , and bayt
The goal of Morocco’s employment compliance laws is to protect workers’ rights, especially the ability to collectively bargain. Moroccans make up around 23% of the unionised population, and employers are required to abide by all union rules. The laws address a number of topics, including maternity leave, work hours, overtime, annual and holiday leave, labour inspections, minimum pay, minimum age for employment, and employment conditions and work.
Employers must verify compliance at every stage of the employment process even though there are no particular rules for hiring personnel in Morocco. In order to assist companies get started quickly and hire individuals on their behalf, our firm offers the finest Employer of Record solution. By utilising existing subsidiaries, we deliver a good hiring experience.
Probation and Termination in Morocco
Depending on their job, Moroccan workers are subject to a different probationary term. The probationary term should not be more than six (6) months for managers, three (6) months for employees, and fifteen (15) days for workers. The typical probationary term lasts 12 months (one year), with just one extension permitted. With seven days’ notice, the probationary period may end at any moment.
The employee is entitled to a one-month notice period if their employment contract is terminated. However, if the worker commits a serious crime, they may be let go immediately. Employees with more than a year of employment history are entitled to benefits upon termination.
To avoid legal issues, it’s crucial to make sure that all Moroccan employment rules are followed. For assistance with adhering to Moroccan employment rules, get in touch with us right away.
EOR Solution
Companies can commit resources to hiring and other HR-related tasks by working with an Employer of Record (EOR). The most effective strategy to join the Moroccan market is as a result of collaborating with an EOR. Your company’s growth will stay on track thanks to our integrated employment platform, which eliminates the need to create a separate company just to handle personnel management.
We specialise in drafting unique contracts that go with local legislation, as well as revising current contracts and quickening the recruiting process by using procedures like electronic signatures on paperwork. To experience Moroccan hiring that is hassle-free, schedule a demo with us right now.
Types of Visas in Morocco
| Types of Visa | Explanation |
|---|---|
| Morocco tourist visa | Those who want to visit Morocco for up to three months can do so with a short-term visa, often known as a tourist visa for Morocco. However, not all visitors to Morocco need a tourist visa. On tourist visas that can be given to anybody, certain travellers may be permitted free access.
The tourist visa may be granted for a variety of reasons, including business, travel for pleasure, attendance at athletic events, journalism, and medical care. Before arriving in Morocco, those who want to participate in any of these activities need to apply for a tourist visa. Journalists must apply for a tourist visa in order to cover any events or stories in Morocco, while business visitors need one in order to perform business operations while they are there. A valid tourist visa is also required for visitors who want to visit Morocco’s stunning tourist spots. In order to stay in the nation while receiving medical care, people who need medical assistance in Morocco must simultaneously apply for a tourist visa. Travelers may experience a seamless and stress-free trip to Morocco by getting the required tourist visa. |
| Morocco transit visa | Morocco transit visa is authorised to a foreigner travelling three times across the territory, but the duration of this visa lasts only 72 hours. |
| Long-term Morocco visa | Foreign nationals can apply for a lengthy Morocco visa if they wish to visit the country for job, study, or family reunion. This kind of visa is provided for a period of time more than three months and is intended primarily to permit lengthy stays in the nation.
Typically, the technical validation procedure for this visa takes three months, and applicants must present proof of their trip purpose, such as a work offer or enrollment documentation from a Moroccan educational institution. The bearer of the visa may then apply for a residence card, which permits them to remain in the nation for a longer amount of time after the visa has been accepted. For individuals looking to settle in Morocco for any length of time, this form of visa is a fantastic alternative. |
| Types of Work Visa | All foreign citizens must have a current work visa in order to be able to legally work in Morocco. The three primary kinds of work visas are the work visa, the student visa, and the family reunification visa. The work visa is a sort of long-term visa.
The Work Visa is intended for people looking for work possibilities in Morocco. The bearer of this visa is allowed to work for a certain employer for a set amount of time. A student visa is required for foreign nationals who want to attend school in Morocco. They are able to enroll in and continue their studies in Morocco with the help of this visa. Last but not least, the Family Reunification Visa is designed for the members of the immediate family of foreign nationals who are already employed in Morocco. The family members can live in Morocco lawfully and join their loved ones thanks to this visa. |
| Morocco works visa requirements | In order to guarantee the successful issue of a work visa for Morocco, applicants must provide a number of essential papers. These consist of the filled-out Morocco visa application form, a current passport with photocopies, a recent passport-size photo, proof of lodging, proof of having enough money to cover travel expenses, and proof that the visa price has been paid.
In addition, the requirements for a visa may change depending on why a visitor is visiting Morocco. For instance, you will require a letter of invitation from the relevant enterprise and a reference from the relevant Ministry if you are travelling for business. If you are attending a conference, you will need a mission order if you work for the government or a joining letter from the organising group. Travellers to attend cultural or athletic events in Morocco will need an invitation from the event department or the relevant ministry, whilst journalists must have the required government authorization. A medical certificate and evidence of your ability to pay for the treatment are required if you are travelling to Morocco for medical treatment. Applicants can improve their chances of receiving a work visa and successfully visiting Morocco for their intended reasons by following to these requirements. |
Work Permit Morocco
The employee must have a job offer or be in the country for at least 15 days before applying for a residence card in order to be granted a work visa in Morocco. A crucial need for acquiring a work permit in Morocco is the job contract. Employees who do not already have a work offer might apply for a residence card or hunt for employment while they are still in the nation. Making an appointment at the Moroccan consulate or embassy, filling out the visa application form, obtaining the appropriate paperwork, assembling it all, submitting it, paying the visa fee, and waiting for the visa to be processed are all steps in the application procedure for a work permit. The employee must verify with the Moroccan government to determine whether they can manage the visa filing with another agency or diplomatic authority if there isn’t a local embassy or consulate.
Payroll and Taxes in Morocco
When it comes to the Moroccan tax code, foreign companies operating there might run into difficulties. IIT (Industrial Income Tax), company tax, social security fees, and VAT are a few of the important tax rules that international businesses operating in Morocco should be aware of. Moroccan businesses have a variety of payroll alternatives, including internal payroll for businesses with a subsidiary in Morocco, remote payroll for major international firms, and outsourcing payroll to a Moroccan payroll processing company. Moroccan payroll taxes include a tax on personal income and residence, much like those in other nations. Morocco has a MAD 0 to MAD 300,000 range for payroll taxes.
| information | Explanation | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Corporate Income Tax | 30% is the current corporate tax rate. Banks and financial institutions pay a 37% tax rate. – 37%. | ||||||||||||||
| Payroll Tax | None | ||||||||||||||
| Sales Tax | The sale of Moroccan products and services is subject to VAT.
With lower rates of 14%, 10%, and 7%, standard VAT is 20%. |
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| Withholding Tax (WHT) | Withholding Tax (WHT) may apply to foreign nationals in Morocco, with varying rates based on the source of income. For instance, whereas royalties, patents, technical assistance fees, and compensation are all taxed at a rate of 10%, dividends are taxed at a rate of 15%. Depending on the kind of interest, different rates of 10%, 20%, or 30% may apply. Rental of equipment is subject to a 10% tax, while non-permanent employee indemnification is subject to a 30% tax. When doing business in Morocco, it’s crucial for foreign nationals to be aware of these WHT rates. | ||||||||||||||
| Income tax rate |
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A prevalent business structure in Morocco is a Societe a Responsabilite Limitee (SARL), sometimes referred to as a Limited Liability Company (LLC). This company form provides a number of benefits, one of which is that its owners are protected from limited liability. Additionally, it offers flexibility in terms of shareholder count, with a cap of 50 permitted. A manager or managers who have been chosen by the shareholders also oversee the business. The stockholders’ shares are flexible and simple to transfer, and they are also freely transferable to their spouses and parents.With a minimal investment of $1,000, Morocco offers plenty of options for other nations to establish their firms. Furthermore, after 26 weeks of employment, Moroccan companies are free to choose anyone they want to hire.
In Morocco, a common type of business organisation is an LLC, or limited liability company. There is no statutory need for a minimum share capital, which is one benefit of an LLC. Additionally, an LLC is limited to 50 stockholders at most. Management or managers are in charge of operating the firm, and they are chosen by the shareholders. The ability of stockholders to freely transfer their interests to their wives and parents is another advantage. With a minimal investment of $1000, Morocco provides plenty of options for international enterprises to establish their operations. After 26 weeks of employment, Moroccan employers are also free to decide how many employees they want to hire.
