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.

Currency: Moroccan Dirham

Principal Language: Arabic

Government: Parliamentary Constitutional Monarchy

Capital City: Rabat

Major Cities: Casablanca, Fes, Salé, Marrakech

Employment Contracts

Employment contracts can be verbal or written, but employers are required to provide a job card to each employee. The job card must have the following information:

  • The name of the employer
  • The name of the employee
  • The employee's duties
  • The employee's social security number

A copy of a written contract must be signed by both the employer and the employee.

Employment contracts in Morocco must comply with the Ministry of Labor’s model contract. The contracts can be for fixed-term, indefinite period or based on a specific task. Fixed-term contracts can be used for seasonal work, a temporary increase in workload or replacing an employee on suspension. Fixed-term contracts cannot be extended for more than 1 year. If the duration of the contract goes beyond 1 year, they automatically become indefinite-term contracts.

Work/Time Regulations

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 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.


13 national holidays are observed across Morocco, out of which 4 are Muslim holidays that don’t have fixed dates.

Fixed holidays are:

  • Jan. 1: New Year's Day
  • Jan. 11: Anniversary of the Manifesto of Independence
  • 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

Holidays without 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)

Any national holiday that falls on a weekend is not carried over to another date. If any business is required to remain open on holiday, employees are paid twice their regular pay or get a compensatory day off. Usually, 2 off days are given to celebrate the Prophet’s birthday and Eid to employees working in foreign embassies, civil services, and educational institutions.

Annual Leave
Employees receive 1.5 days’ annual leave for each month of service after completing 6 months of employment. Employees aged under 18 years get 2 days’ annual leave for each month of service. The annual leave is increased by 1.5 days each year for employees who have completed 5 years of employment with the same employer. The leave can be split or accumulated over 2 continuous years.

Maternity Leave
Pregnant employees are entitled to 7 weeks’ maternity leave before the childbirth and 7 weeks after the childbirth. If the childbirth occurs before the expected date of delivery, the leave is extended, so that entire 14 weeks are taken. Maternity leave can also be extended for pregnancy-related complications.

Paternity Leave
Working fathers receive 3 days’ paternity leave for the childbirth which need not be taken continuously but must be taken within 1 month of the childbirth. Employers pay for the paternity leave but are reimbursed by the National Social Security Fund.

Sick Leave
Employees who are not able to work due to an injury or illness are required to notify the employer within 48 hours. In case the absence exceeds 4 days, employers must inform the employer of the probable absence and submit a medical certificate confirming it. The employer can ask the concerned employee to undergo a medical check-up which is paid by the employer.

Other Leaves
Employees can take personal leave for:

  • their marriage - 4 days' leave, including 2 days' paid leave;
  • the marriage of their child(ren) or stepchild(ren) - 2 days' leave;
  • the death of spouse, child, grandchild, parent or stepchild - 3 days' leave, including 1 day's paid leave;
  • the death of parent or sibling: 2 days' leave;
  • circumcision of a child - 2 days' leave;
  • a spouse or dependent child's surgery - 2 days' leave.


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.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Morocco and hire their employees without having to establish a branch office or subsidiary in Morocco.

  • Your candidate is hired via our Morocco PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll - all in full compliance with Morocco laws.
  • Global PEO Services experts manage all day-to-day operational issues such as employee expenses, and severance/termination if required.
  • With no contractor risks, pass on the compliance burden to Global PEO Services.

Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 150+ Countries

  • Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.

Contact Us