Morocco PEO Services

Morocco’s relatively liberal economy has witnessed a steady growth in GDP since the government implemented an extensive reform program that was approved by the Constitution in 2011. The services sector contributes around 50% to the GDP while industry including major sectors such as construction, mining, and manufacturing contributing 25%. Morocco’s major exports include electric components, crude minerals, clothing and textiles, cars, petroleum products, fish, vegetables, fruits, fertilizers, and inorganic chemicals.

Capital City

Rabat

Currency

Moroccan Dirham

Principal Language

Arabic

Government

Parliamentary Constitutional Monarchy

Major Cities

Casablanca, Fes, Salé, Marrakech

Regular work schedule comprises 44 hours a week. Employers can also distribute work hours over the year provided that daily work schedule does not exceed 10 hours. Agricultural workers are required to work 2,496 hours in a year which can be split into periods based on the crop cycles. Daily work hours can be extended in the case of natural disasters or accidents to recover lost time after consulting employees’ representatives or trade unions. Workers must be compensated for 100 percent of their wage for work on paid holidays and leave days.

Overtime

Overtime is permitted if companies perform tasks that are in the national interest or experience a huge spike in their work volume. Workers engaged in non-agricultural activities are entitled to a 25% premium for overtime worked between 6 a.m. and 9 p.m. and a 50% premium for overtime worked between 9 p.m. and 6 a.m. These premiums are increased to 50% and 100% respectively for overtime worked on rest days.

Pension and Social Security

Employees can retire at the age of 60 and are entitled to an old-age pension if they have made at least 3,240 days of contributions to the social insurance program. The pension is 50% of the employee’s average earnings over a 96-month period before retirement plus 1% of average earnings for every 216 days of coverage in excess of 3,240 days. The maximum average wages of 6,000 dirhams are used to calculate benefits. The minimum monthly old-age pension in Morocco is 1,000 dirhams while the maximum is 70% of the employee’s average wages.

Employer: 7.93% of total covered payroll in a month.

Insured person/Employee: 3.96% of gross monthly covered earnings.

The legal monthly minimum wage is 1,812.98 dirhams in the agricultural sector and 2,568.84 dirhams in the non-agricultural sector.

The insured’s contributions fund all old-age, disability, and survivors benefits except the death grant.

• Early Pension
  The early pension is calculated using the same method as the old-age pension and is paid monthly or quarterly.
• Old-age Settlement
  A consolidated amount equal to the present value of the contributions based on the rate of return of the pension funds is given to the insured.
• Death Grant
  A consolidated amount between 10,000 and 12,000 dirhams is provided.

Disability Pension

Employees assessed with a complete loss of earning capacity and a minimum of 1,080 days of coverage (including a coverage of 108 days in the last 12 months before the disability began) are entitled to disability pension. No minimum qualifying period applies to disability due to an accident. The pension is 50% of employees’ average earnings over a 12-month or a 60-month period before the disability began plus 1% of average earnings for every 216 days of coverage in excess of 3,240 days. Again, the maximum average wages of 6,000 dirhams are used to calculate benefits.

Constant-attendance Supplement

The insured are entitled to constant attendance supplement equal to 10% of their average earnings in the previous 12-month or 60-month period.

Spouse’s Pension

Widows/Widowers are entitled to 50% of the disability or old-age pension for the deceased was receiving.

Orphan’s Pension

Each orphan is entitled to 25% of the disability or old-age pension the deceased was receiving and in case of one orphan, the pension increases to 50%.

Social Insurance

Employers are required to contribute 0.67% of gross monthly payroll while employees are required to contribute 4.11% of their gross salaries toward social insurance to receive benefits including sickness benefits, maternity benefits, and medical benefits. The minimum monthly wages used to calculate social insurance contributions are 2,568.84 dirhams in the non-agricultural sector and 1,812.98 dirhams in the agricultural sector.

Medical Benefits

Employees who have made contributions toward social insurance for at least 54 days in the last 6 months qualify for medical benefits. Dependents for medical benefits include spouse, dependent children aged less than 21 years (26 years if the children are into higher education). No age limit applies if the child/children are disabled.

Workers’ Compensation

Employers are required to finance the workers’ compensation through premiums paid to private insurance providers or via the direct provisioning of benefits to employees. For a temporary disability, employees receive 2/3rd of their earnings as workers’ compensation benefits. Employees are entitled to regular wage (paid by the employer) for the day the disability began while the rest is paid for by the workers’ compensation benefits until the concerned employees recover or are assessed to have a permanent disability.