Morocco, officially known as the Kingdom of Morocco, is a North African country bordered by Algeria, the Western Sahara, the Mediterranean Sea, and the Atlantic Ocean. It has a population of 38 million people (2025), of which 12.4 million people make up the Moroccan workforce (2024).

The economy of Morocco is stable, with a market-driven system primarily reliant on agriculture, tourism, and a growing manufacturing sector. Economic growth has rebounded after the pandemic, energy crisis, and the 2023 earthquake, with a GDP of 165.84 billion US dollars (2025).

More companies are looking to hire in Morocco due to low labor costs, educated workers, and its stable economy, while also being a welcome environment for foreign investment. Local labor laws must be adhered to when doing business in Morocco, including employee benefits such as set working hours, the right to a minimum wage, and annual leave entitlements.

This guide will provide a thorough overview of Moroccan labor laws, including mandatory employee benefits and supplementary benefits that are recommended. You’ll also learn how Remote People can help your business streamline employee benefits through our Employer of Record (EOR) services.

Moroccan Labor Law

The Moroccan Labour Code of 2003 dictates most employee benefits that companies must provide workers in Morocco. Examples of these benefits include overtime compensation, paid leave, sick pay, and severance packages.

Other laws/acts that provide information on employee rights include:

  • Hours of Work and Rest Law of 1951
  • Annual Leave Law of 1951
  • Employment of Women Law of 1954
  • Severance Pay Law 1963
  • Sick Leave Law of 1976
  • Minimum Wage Law of 1987
  • National Insurance Law of 1995

Mandatory Employee Benefits in Morocco

The mandatory employee benefits that all workers in Morocco are entitled to are detailed in the sections below.

Social Security Contributions

The Morocco National Social Security Fund (CNSS) is an institution that manages contributions for employees and employers in Morocco, funding departments such as health, disability, and retirement, primarily for salaried employees working in the private sector.

Employers are responsible for contributing to the social security system and allocating employee contributions from monthly wages.

Contribution rates for social security in Morocco are as follows:

Contribution Type Employer Rate Employee Rate Notes
Family Allocation 6.4% –
Social Allocation 8.98% 4.48% Monthly salary limit of 6,000 MAD
Professional Training 1.6% –
Medical Care 4.11% 2.26%

Annual Paid Leave

Workers in Morocco are entitled to 21 consecutive days of paid annual leave. National and religious holidays are considered separate from annual leave entitlement.

Employees under the age of 18 are entitled to 24 days of annual leave per year. Annual leave can be carried over to the following year, but only to a maximum of 15 days.

Working Hours

Working hours in Morocco are typically 10 hours per day and 44 hours per week. Agricultural workers tend to work longer hours but don’t typically exceed 48 hours per week. Normal working hours over 1 year total 2,288 hours.

Normal hours can be changed under emergency situations – any hours worked over 10 hours per day count as overtime. Any work carried out between the hours of 9 pm – 6 am in the non-agricultural sector or between 8 pm and 5 am in the agricultural sector is considered night work.

Women and minors must be provided with a rest period of no less than 11 hours between two working night shifts.

Overtime Pay

Hours worked over an employee’s contracted hours are considered overtime. Overtime should be avoided, but may be allowed in exceptional circumstances.

Workers must be paid at the rate of 125% of their normal wages for any overtime hours worked, or an additional 50% for night hours. Overtime hours must not exceed 80 hours per year, or 100 hours per year under consultation with an employee’s representative.

Public Holiday Leave

Morocco has public holidays, which are considered paid days off. If a worker has to work on a public holiday, they should be given a compensatory day off and paid compensation.

The public holidays in Morocco are as follows:

  • January 1: New Year’s Day
  • January 11: Anniversary of the Independence Manifesto
  • January 14: Amazigh New Year
  • March 20: Eid al-Fitr (date varies)
  • March 21: Eid al-Fitr Holiday (date varies)
  • May 1: Labour Day / May Day
  • May 27: Eid al-Adha (date varies)
  • May 28: Eid al-Adha Holiday (date varies)
  • June 17: Hijra New Year (date varies)
  • July 30: Feast of the Throne
  • August 14: Anniversary of the Recovery of Oued Ed-Dahab
  • August 20: Anniversary of the Revolution of the King and the People
  • August 21: Youth Day
  • August 25: The Prophet Muhammad’s Birthday (date varies)
  • November 6: Anniversary of the Green March
  • November 18: Independence Day

Sick Leave

If an employee is absent from work due to illness, they are entitled to sick leave. The first 3 days of sickness are generally unpaid, with sick pay starting on the 4th day, provided that a medical certificate has been authorized.

This consists of 4 days of paid sick leave per year – this is typically paid by the social security system at the rate of 66.7% of an employee’s normal wage. 

Employees must have made a minimum of 54 days of contributions in the previous 6 months to be entitled to sick pay under the social security system. Sick pay has a maximum limit of 52 weeks in a 24-month consecutive period.

Maternity Leave

Maternity leave in Morocco is 14 weeks, with half taken before birth and half taken after birth. To qualify for maternity pay, female employees must have contributed for 54 days in the 10 months preceding their last day of work. 

Employees must be paid in full while on maternity leave and are protected from dismissal during the course of this leave. They also have the right to return to the same position at the end of their maternity leave.

Paternity Leave

Male employees are entitled to 3 days of paternity leave at full pay if their partner/spouse has a child. Paternity leave must be taken within 1 month of the birth of the child.

Severance Pay

Employees are entitled to severance pay if their employment has been terminated, unless dismissal is due to gross misconduct by the worker. An employee must have worked for the employer for no less than 6 months to qualify for severance pay.

Severance pay is typically paid as follows:

Years of ServiceSeverance Pay
1–5 years96 hours of pay (50% of monthly salary) per year
6–10 years144 hours of pay (75% of monthly salary) per year
11–15 years192 hours of pay (100% of monthly salary) per year
Over 15 years240 hours of pay (126% of monthly salary) per year

Supplementary Employee Benefits in Morocco

Companies operating in Morocco should consider offering supplementary benefits in addition to mandatory benefits required by local labor laws.

Supplementary benefits can be highly beneficial for staff retention while also making job vacancies more attractive to prospective candidates, and ultimately improving hiring rates.

Some examples of supplementary benefits your business could offer include:

  • Performance bonuses
  • Flexible working
  • Expenses for transport, housing, or food
  • Private pension plans
  • Enhanced annual, maternity, or paternity leave
  • Advanced training opportunities
  • Company car

Optimize Employee Benefits with Remote People

Hiring in Morocco can be a much easier process with an Employer of Record provider on board – this is where Remote People can help.

We provide Employer of Record (EOR) services in Morocco, helping companies avoid legal risks and penalties by managing the hiring process. Our EOR team is well-versed in the Moroccan employment landscape and ensures your business remains fully compliant with local labor laws when hiring new staff.

We can also help you directly hire new workers in Morocco with our recruitment services. Our team has years of experience working in the Moroccan recruitment sector, knowing the local language, the best places to advertise job positions, and the business culture.

If you need help with HR, payroll, and further compliance, check out our PEO services. These allow for smooth employee management without the need for a local entity, and a PEO can handle a variety of tasks from employment contracts to tax compliance.

Contact Remote People today to see how we can help your business expand into Morocco.