How to hire contractors in Morocco

In Morocco, contractors and self-employed workers make up almost 40% of the total labor force. For an organization based outside of the country, Morocco’s contractors represent a big opportunity if they’re suited to your needs. Contract hires can be cost-efficient and scalable, to help your business grow.

So, how do you hire contractors in Morocco? How do you pay Moroccan contractors? And what’s the secret to doing both, legally and efficiently? Let’s get into the details.

How to hire contractors in Morocco

To hire contractors in Morocco, you need to be clear on the legal classifications between a “contractor” and an “employee”. You’ll also need to understand Morocco’s local labor laws and what this means for your contractor(s). Finally, you’ll need to find and hire the right contractor(s) for the job.

1. Understand contractor vs. employee classification

The Moroccan Labor Code (Law No. 65-99) outlines employment standards for businesses and employees working in Morocco. The code states that employees must have a written or verbal employment agreement, but the same does not apply to contractors. 

In fact, independent contractors are not covered by the Labor Code at all. This is just one of the important differences to know between a Moroccan “contractor” and an “employee”.

In Morocco, contractors are classified as workers who are:

• Paid in gross (typically at the end of a project or the specified period)
• Responsible for their own tax calculations and payments
• Not entitled to employee benefits or protections

Employees, on the other hand, are:

• Protected by employment law as outlined in the Moroccan Labor Code
• Paid in regular intervals (e.g., monthly)
• Supported by the employer with taxes (the employer calculates appropriate contributions and deducts them from the paycheck)
• Entitled to statutory benefits, including paid leave

This is why hiring a Moroccan contractor can be more cost-effective than hiring an employee. Your organization doesn’t need to cover tax contributions or employee benefit expenses. 

Misclassifying workers can carry a heavy cost, though. A business must pay and manage a worker as an employee if that’s their role. For example, if the worker has signed a contract with no fixed term, then that makes them an employee and not a contractor.

2. Understand local labor laws

As mentioned above, Morocco’s labor laws, in the Moroccan Labor Code, cover workers employed in local businesses. If you hire a contractor in Morocco, then these laws wouldn’t necessarily apply. 

However, contractors in Morocco may expect some of the following norms. For example, an independent contractor may still expect to get a public holiday off work. And they might want to work typical working hours to fit in with their lifestyle.

• Minimum wage: Morocco’s minimum wage varies by industry. As of May 2025, workers in the agricultural sector must receive at least MAD 2,418.00/month, MAD 3,269.00/month (~$350) in the private sector, and MAD 4,000.00/month (~$440) in the public sector.

• Working hours: Moroccan workers typically work 44 hours a week, with a maximum of 10 working hours a day

• Public holidays and annual leave: There are 13 public holidays each year in Morocco. Under the Labor Code, the statutory minimum for annual leave is 18 days a year.

• Termination: Employees are protected by strict termination rules, including a one-month notice period.

3. Find and hire contractors

When hiring abroad, you need to know the best places to find the best talent.

In Morocco, this means posting your job ads on LinkedIn and local job boards (including Indeed). Some workers even turn to social media sites like Facebook, where communities of English-speaking locals share job opportunities.

Remember, you are not legally obligated to provide contract workers in Morocco with Terms of Agreement. That said, having the details of the job scope laid out and agreed upon could save you some hassle further down the line. 

Having both parties sign a freelancer contract outlining the payment terms, contract period, and worker classification could help mitigate any future misclassification issues. Plus, it’s evidence that, as the employer, you’ve acted compliantly.

To find and hire Moroccan contractors efficiently, make these details clear in the job ad as well. That way, you’re all starting on the same page.

How to pay contractors in Morocco

To pay contractors in Morocco, you need to determine the best payment process. This could be via bank transfer, a payment wallet, or an online platform like Payoneer WFM. And while you won’t be liable for a contractor’s tax payments, you’ll still want to be informed of their responsibilities.

1. Determine how to pay your contractors in Morocco

Once a contractor has invoiced you for their work, there are several ways to pay a contractor in Morocco:

• Bank transfer: Top banks in Morocco include Attijariwafa Bank, Banque Centrale Populaire (BCP), and Bank of Africa (BMCE)
• Digital payment wallets
• Dedicated online platform: Hiring and paying contractors can get time-consuming quickly. Processing all your contractor fees through one platform like Payoneer WFM can be a real time-saver. 

2. Ensure your Moroccan contractors have the right tax information

As we covered earlier, a Moroccan contractor, freelancer, or any other self-employed worker must hold themselves responsible for tax calculations and payments. This is also true of other funds due to the Moroccan government for insurance, pension, or social security.

As an employer, you may wish to provide this information to your contractors in Morocco. After all, in Morocco, penalties for not paying taxes include surcharges for late or non-payment and other administrative fines. 

In Morocco, tax returns are due on 31st March. A tax-free threshold of MAD 30,000 applies to contractors. After that, they are liable for:

• 10% of income between MAD 30,000-50,000 
• 20% of income between MAD 50,000-60,000 
• 30% of income between MAD 60,000-80,000 
• 34% of income between MAD 80,000-180,000 
• And 38% of any income over MAD 180,000.

3. Pay your Morocco contractor

Above, we discussed the ease and simplicity of processing contractor payments through a single system, like Payoneer WFM. This approach streamlines paying your Moroccan contractor(s) and any other contract, freelance, or full-time workers you have across the world.

Before we look at why and how Payoneer can help, it’s worth noting the additional (and sometimes hidden) costs to hire and pay contractors in Morocco. Make sure you’ve calculated and allowed for currency conversion and any conversion fees. 

When you consider how much of your bookable time could be taken up with finding, hiring, and paying Moroccan contractors, working with a workforce management partner really makes sense.

Why Payoneer WFM is the easiest way to hire and pay contractors in Morocco

Payoneer Workforce Management (WFM) is a platform designed for companies that want to employ independent contractors and full-time employees. We can help you hire and pay contractors in Morocco and 160+ other countries without the complexities and time drain of setting up a local legal entity. 

• Onboard new hires quickly and compliantly without a local entity
• Run global payroll securely with a single click and automate payments of contractor invoices
• Stay updated and compliant with local employment laws 
• Manage taxes, benefits, work permits, timesheets, background checks, and more

From hiring in days to multi-currency payroll, Payoneer WFM covers all the essential steps of hiring, paying, and managing a global team. 

Morocco contractors FAQs

What is an independent contractor in Morocco?

In Morocco, an independent contractor is not covered by the Moroccan Labor Code. This means they do not require a verbal or written agreement (though we’d still recommend one). A contractor is hired to work on a set project or for a set period of time. This differs from an employee on an open-ended contract with additional employee benefits.

What are some advantages of hiring Moroccan contractors?

The benefits of hiring contractors include no tax contributions from the employer and lower employment costs (although a contractor’s fees are typically higher per day than a full-time employee’s daily salary). You may also be able to hire specific contractors to contribute niche or specialist skills to a project or task.

Morocco is in the same time zone as much of Europe, making it a good fit for companies based in Europe or on America’s East Coast.

Can I hire an independent contractor in Morocco?

Yes. You can hire independent contractors in Morocco to fulfill certain tasks or work on specific projects. Be sure to define the scope and expectations of the work with any contractor.