Using an Employer of Record in Morocco

Knowing how best to find, hire, and pay employees in Morocco comes with unique challenges for international businesses. To engage talent quickly while staying compliant with local regulations, many companies use an Employer of Record in Morocco.

EORs like Payoneer Workforce Management help manage payroll, tax compliance, benefits, and employment administration, reducing operational overhead. 

Keep reading to learn more about using an EOR in Morocco, or get in touch to find out how Payoneer Workforce Management can support your growth.

How to hire employees in Morocco

Companies looking to engage talent in Morocco have three options.

1. Set up a local entity: This allows for the direct hiring of employees. However, it involves navigating registration procedures, tax requirements, local employment laws, and ongoing administrative responsibilities.

2. Hire independent contractors or freelancers: Hiring contractors can be flexible and cost-effective, but it carries risks of misclassification, which can result in legal ramifications.  

3. Employer of Record: Moroccan talent can be legally engaged on your behalf through an EOR, and you can get support for managing onboarding, payroll, benefits, and more.

Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity. We help you set up localized benefits as per local laws and requirements.

How to onboard employees in Morocco

Onboarding employees involves several steps to stay compliant. Typically, a company will need to issue an employment contract, collect employee documentation, register workers with relevant authorities, and set up payroll and benefits.

The employee onboarding workflow generally includes:

• Payroll processing and statutory benefits setup: Register new employees in the local payroll system and finalize all legally required benefit enrollments in line with regional labor guidelines.
• Equipment distribution and workspace preparation: Ensure the local talent receives the necessary devices, tools, and system access so they’re equipped to begin work without interruption.
• First‑week onboarding briefing: Provide an overview during the employee’s initial week to introduce company policies, key processes, and expectations specific to their role.
• Team and organizational introductions: Coordinate meetings that help the newly onboarded candidate connect with their immediate team and engage with colleagues across the broader organization.

Payoneer Workforce Management enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Morocco

Employers must pay employees in Morocco in Moroccan Dirham (MAD) typically on the 25^th of each month. The minimum wage is currently around MAD 3045.96.

Income tax and social security obligations

To run a compliant Moroccan payroll, employers must also manage income tax and social security obligations.

Income tax is applied on a progressive scale ranging from 0% to 38%. Social security in Morocco is a broad system designed and administered through several bodies:

• Caisse Nationale de Sécurité Sociale (CNSS): Administers social security for private sector employees
• Régime Collectif d’Allocation de Retraite (RCA): Covers pension schemes for public sector workers
• Caisse Nationale des Organismes de Prévoyance Sociale (CNOPS): Manages health insurance for public sector employees
• Assurance Maladie Obligatoire (AMO): Provides partial coverage for outpatient care, hospitalisation, maternity care, and other essential healthcare services for insured workers and their dependents

Using an Employer of Record offers a streamlined way to compliantly pay employees in Morocco. Payoneer Workforce Management’s unified, all-in-one platform gives you a single dashboard to manage a global workforce. 

Employment laws in Morocco

Engaging employees in Morocco means adhering to a well-defined set of labor laws that are simpler to navigate and understand using an Employer of Record. 

In Morocco, a typical full-time employee works 48 hours per week, for a maximum of 10 hours per day, inclusive of overtime. There are also minimum standards for overtime and probation. 

Overtime

Overtime	Pay rate
Between 6 am and 9 pm	Hourly wage + 25%
Between 9 pm and 6 am	Hourly wage + 50%
On public holidays	200% of daily pay
On weekends	150% to 200% of regular salary

Probation

For indefinite-term contracts, executive or managerial employees have a probation period of 3 months, while other employees have 1.5 months. The probation period in both instances can be renewed once.

For fixed-term contracts, the probation period is 1 day per work week for up to 14 workdays if the contract’s duration is less than 6 months or 1 month for contracts over 6 months.

You can get support to stay compliant with local labor laws using Payoneer Workforce Management’s infrastructure.

Minimum wage in Morocco

Minimum wage in Morocco is currently around MAD 3,045.96 per month. These rates are subject to increase, so employers should regularly check official government announcements for updates.

Employment contracts in Morocco

There are several types of employment agreements in Morocco. The standard type is an indefinite term contract (CDI), and the other is a fixed-term contract. 

Regardless of whether local laws legally require them, written employment contracts are strongly recommended to clearly define terms and mitigate disputes.

Employment contracts typically include things like:

• The employee’s name and personal details
• Contract type (fixed-term or indefinite)
• Start date of employment
• Role description and responsibilities
• Employee compensation, including bonuses and benefits
• Work hours and statutory leave entitlements
• Probation periods
• Termination conditions, including notice periods and severance pay

By using an Employer of Record, Morocco, drafting employment contracts becomes simpler with expert support. Payoneer Workforce Management helps you set up localized benefits as per local laws and requirements. Onboard talent quickly and securely with localized contracts and payroll.

Leave policy in Morocco

In Morocco, employers must offer leave, including vacation time, public holidays, sick leave, and more.

Vacation leave

Moroccan employees are entitled to 18 paid days of vacation. The duration of this paid time off increases by 1.5 days every 5 years until the maximum 30 days of vacation leave is reached. Morocco recognizes 13 public holidays per year.

Vacation days may be carried forward for a maximum of 2 years. Leave that isn’t carried forward is refunded to the employee at the end of each year.

Sick leave

Employees get 4 paid days of sick leave annually. If a worker is unable to work due to an ailment or illness for more than 4 consecutive days, they must notify their employer of the estimated duration of their absence with medical certification.

Maternity and paternity leave

In Morocco, female employees are entitled to 14 weeks of maternity leave, split before and after the date of childbirth. This is fully paid by the National Social Security Fund (CNSS).

Fathers also get 3 days of paternity leave, which is paid for by the CNSS at 100% of the average wage.

Other leave

There are numerous other leave entitlements that workers may be eligible for, including:

• 3 days for the death of a spouse, child, grandchild, parent, or stepchild, or 2 days in the event of the death of a sibling or parent of the employee’s spouse
• 4 days (2 paid, 2 not)  if the employee themselves is getting married, or 2 days if their child or stepchild is getting married
• 2 days if a spouse or dependent child of the employee requires surgery

Work permit in Morocco

A work permit is an official document authorizing non-Moroccan nationals to work or search for work in Morocco. All foreigners are required to hold a valid work visa to work legally in Morocco. 

To obtain a work permit, the employee must apply for a Moroccan working visa at a diplomatic mission in their country. They must submit a Morocco visa application form and provide other relevant documentation, including a valid passport.

For more information, both employers and employees should consult official government resources to understand specific details and comply with local regulations.

Background check in Morocco

Some employers carry out background checks before engaging an employee, but they are subject to local regulations and require consent from the party being checked. 

These checks can include criminal records, employment history, education verification, and other lawful screenings.

Employment termination in Morocco

Employers in Morocco may dismiss employees only for legitimate reasons, and ending employment without valid grounds can be treated as unfair dismissal, potentially exposing the employer to legal penalties.

Common termination scenarios include employee resignation, misconduct, absence, or performance issues.

Notice periods

Notice periods depend on the terminated employee’s position in the company, probation period, and years of service:

Employee type	Length of service	Notice period
Executives & managerial	During probation	1 month
	Less than 1 year	1 month
	1 to 5 years	2 months
	More than 5 years	3 months
Other employees	During probation	8 days
	Less than 1 year	8 days
	1 to 5 years	1 month
	More than 5 years	2 months

Severance pay

Employees on indefinite contracts in Morocco are entitled to severance pay if they are dismissed after completing at least 6 months of service. Severance is calculated based on each year of actual service, including partial years, using the employee’s salary as the reference.

Years of service	Severance entitlement (per year of service)
First 5 years	96 hours of salary
6 to 10 years	144 hours of salary
11 to 15 years	192 hours of salary
More than 15 years	240 hours of salary

Company registration in Morocco

Businesses may register a company in Morocco to establish a permanent presence or access local markets. Details on company registration processes and requirements are available through the official government website.

For many companies, using an Employer of Record in Morocco is faster and simpler. Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity.

PEO in Morocco

A Professional Employer Organization (PEO) in Morocco can support HR and payroll functions, but requires you to have a legal entity in-country.

On the other hand, an Employer of Record in Morocco does not require a legal entity and instead acts as the legal employer for the local team. This often makes it the better choice for companies new to the Moroccan market.

Payoneer Workforce Management’s Employer of Record services in Morocco

Payoneer Workforce Management helps growing companies onboard, manage, and pay employees in Morocco without setting up a local entity. 

As your EOR in Morocco, we offer assistance with employment contracts, benefits administration, taxes, and payroll, while you retain control over daily operations.

Book a demo to learn more about Payoneer Workforce Management.

FAQs

1) What is an Employer of Record in Morocco?

An EOR in Morocco is a third-party organization that legally employs workers on your behalf and helps manage payroll, taxes, and employment contracts, allowing you to engage talent without establishing a local entity. By using an Employer of Record, Morocco, companies can get guidance for navigating the employment laws.

2) How much does it cost to hire in Morocco?

Employer costs start from a minimum of approximately 23.09% on an annual salary of USD 60,000.

Actual employment costs vary depending on salary and benefits. Businesses can detailed employment cost breakdown using our employee cost calculator.

3) Why hire through an EOR in Morocco?

Using an Employer of Record helps companies engage talent faster, reduce administrative burden, and manage payroll, taxes, and more with compliance support. By utilizing services like an Employer of Record, Morocco becomes a more accessible market for companies expanding their workforce.

Payoneer Workforce Management allows businesses to onboard and pay employees across the globe in 70+ currencies and offers a transparent pricing structure. Get in touch to learn more about how Payoneer Workforce Management can support your expansion strategy in Morocco.