Home to over 38 million people, Morocco offers a robust labor market in the heart of Northern Africa. The kingdom’s government is prioritizing reforms that boost the business environment, making Morocco an increasingly attractive place to expand your company’s operations.

While the agriculture industry shrinks, industrialization and technology have continued to boost Morocco’s annual growth, meaning that you’ll find a nation of tech-savvy individuals looking for modern, global employment opportunities.

With the country’s growing economy, stable political landscape, and openness to foreign investment, it is a strong place to do business.

Why Expand Your Business to Morocco

Strategic Advantages of the Moroccan Market

Although Morocco was hit hard by the 2008 global financial crisis, its economy has bounced back impressively and now boasts a GDP of $144.42 billion USD, according to the World Bank.

GDP annual growth clocks in at 3.4%, and even the COVID-19 pandemic didn’t set the country back too far due the government’s proactive response and robust macroeconomic policy. The services sector makes up for over 50% of contribution to GDP, and other hot sectors include tourism and industry. Morocco is a large exporter of phosphate minerals, seafood, and textiles. 

In recent years, Morocco has sought to establish itself as a key player on the global stage and offers great potential for foreign investment. The country has launched many programs in the past few years aimed at stimulating the economy and increasing job opportunities.

With a low minimum wage and affordable average salary for the country’s fleet of both skilled and unskilled workers, hiring employees here provides a strong opportunity to grow your bottom line.

Importance of Being Aware of Moroccan Labor Laws

When hiring employees in Morocco, it is essential to understand the country’s Labor Code. There have been significant reforms to the code in recent years, so even if you have prior experience hiring in Northern Africa, it’s crucial to refresh your policies to meet current requirements.

With the country’s changing social and economic landscape, Morocco recently passed a law de-regulating the right to strike while simultaneously ramping up the minimum wage and focusing on better protections for workers’ rights. 

Being aware of these legal requirements is essential for anyone hoping to avoid potential legal problems and build a positive reputation as an employer in Morocco Vetting your current employment practices against these new regulations is a good place to start.

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Step 1: Define Your Hiring Needs

Before you begin listing jobs and hiring employees in Morocco, it’s important to ask yourself a series of questions about the roles you’re hoping to fill. Which roles are a priority for the company’s overall goals? How many employees will you need to fill these roles? What skills, specific qualifications, or experience are needed for each distinct position? 

Laying out these criteria in advance will help with your efforts to recruit employees in Morocco. You’ll be better equipped to find the right candidates and ensure that the roles you are hiring for correspond with your organization’s overall goals in your expansion to Northern Africa. 

You’ll also want to think about the long-term objectives of your business’ expansion into Morocco. Are you hoping to establish a small team that manages local operations, or are you looking to initiate a larger-scale hiring process? These crucial considerations will help guide your Moroccan recruitment strategy and yield more efficient results.

Step 2: Understand Compliance Requirements

Understanding the labor laws, tax obligations, and mandatory benefits offered in Morocco is essential when you are looking to hire employees in the country. Moroccan employees are entitled to a variety of protections under the Labor Code of the Kingdom of Morocco, which is part of the country’s Constitution.

Protections include restrictions on working hours, overtime pay, annual leave, maternity leave, social security, and more. In Morocco, the General Tax Directorate (DGI) is responsible for collecting taxes. Employers are responsible for withholding income tax from their employees’ salaries and remitting it to the DGI.

Income tax rates in Morocco are progressive, ranging from 10% to 37% for those who make over $40,001 Moroccan Dirham annually. Those who make under $40,000 MAD (equivalent to $4,312 USD) are exempted from paying income tax.

Step 3: Choose Your Hiring Method

Successfully hiring employees in Morocco starts with deciding on the best hiring method for your organization’s unique needs. Will you establish a legal entity in Morocco, use an Employer of Record (EOR), or hire independent contractors? Each option has its own set of advantages and drawbacks to consider.

Establishing a Legal Entity

Establishing a legal entity to conduct business in Morocco will give you the most freedom and flexibility in the long run – but it can be a time-consuming, costly, and challenging option, especially for those who are not intimately familiar with the country’s labor laws. You have a few options when it comes to establishing a legal entity to do business in Morocco: 

  • Subsidiary Incorporation: You can choose from different types of subsidiaries to incorporate in Morocco if you want to begin operations in this country this way – however, these options can take many months to complete and often come with heavy fees. Subsidiary options include LLCs, joint stock companies, and other structures.

    Incorporating an LLC in Morocco is typically considered the easiest subsidiary path, but it will still require a certificat négatif, notarised and apostilled incorporation documents, a declaration of investment, and a Moroccan bank account. You’ll also need to register with the CNSS, the country’s social security system.

  • Branch Registration: Setting up a branch of an existing company in Morocco is typically considered easier than incorporating a subsidiary.

    Still, you’ll need procès-verbal documentation, a physical location in Morocco, and registration with the tax authorities, National Commercial Register, and CNSS.

Using an Employer of Record (EOR)

Opting to work with an EOR in Morocco is a popular option, as it helps employers avoid the hassle of the country’s complex labor laws, long wait times, and bureaucratic structures that can be frustrating at times. You don’t need to have a physical location in Morocco, nor do you need to incorporate a subsidy or register a branch in the country.

An EOR can help you accelerate your timeline to successfully hiring employees in Morocco, handling the legal responsibilities and administrative tasks of employment while you retain day-to-day management capacities.

Working with a PEO (Professional Employer Organization) is also an option in Morocco.

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Hiring Independent Contractors

Hiring independent contractors in Morocco requires strict compliance with the county’s Labor Code. There are different regulations for hiring independent contractors in Morocco depending on the industry, but you can hire temporary freelancers or remote employees for specific projects, typically without a term limit.

Independent contractors in Morocco must file and pay their own taxes, and they are not included under the traditional employer contribution system for social security and mandatory health care. However, misclassifying employees as independent contractors can come with heavy fines as well as back payment requirements on taxes and social security. Moroccan agencies are diligent about policing for misclassification.

Step 4: Develop a Recruitment Strategy

Once you determine how you are going to hire someone, you need to ascertain how you will find the right talent for the job. Writing an effective job description that is aligned with local market expectations is the first step in any successful recruitment strategy.

There are a variety of different languages spoken in Morocco, with the kingdom’s official languages being Arabic and Moroccan Berber – however, virtually all Moroccans speak and understand French, and many speak Spanish as well due to the European influence on the country.

Posting a job description in a local language can help attract the best talent in Morocco. You’ll also want to make sure the job description aligns with Morocco’s anti-discrimination codes and legal requirements. There are a variety of job listing sites, both free and paid, that are popular in Morocco to attract top talent.

Moroccans use LinkedIn, Indeed, and Talent.com as well as more local options like MarocAnnonces.com, Rekrute.com, and Skills.ma.

Step 5: Conduct Interviews and Assessments

Once you have identified some potential candidates for your position, you’ll want to conduct interviews that adhere to cultural norms. Moroccan culture is a rich tapestry of European, Arabic, and African influences. Some of the country’s key values include traditional, family, religion, and modesty. 

Learning about Moroccan culture before interviewing local candidates can help you gain respect and a positive reputation as an employer. Make sure to structure interviews appropriately and assess candidates fairly.

Another tip? Including written or practical assessments can help you evaluate a candidate’s readiness to hit the ground running in their new position by assessing real-world skills in action.

Step 6: Perform Background Checks

In many countries, it is customary to perform background checks to verify information about the candidates you are considering. Many employers verify educational backgrounds, employment history, and work permit statuses for foreign nationals.

For a criminal background check, you’ll need a Casier Judiciaire, which is a national criminal record assessment. While the country does not have laws prohibiting background checks, the Moroccan Labor Law does state that the only factors employers should consider are the candidate’s qualifications, experiences, and professional recommendations.

Step 7: Draft Employment Contracts

In Morocco, employment contracts can be written or verbal – however, written contracts are always recommended for clarity for both parties. For fixed-term contracts, written contracts are mandatory. In a written contract, you must specify the following information:

  • Names and contact information of both parties, such as full legal names, addresses, and/or phone numbers.
  • Job title and description, including responsibilities, working hours, and employment type (fixed-term or indefinite-term).
  • Compensation, or the fee/salary to be paid for the work.
  • Date of commencement (and termination, in the case of a fixed-term contract).
  • Other terms such as leave entitlements, notice periods, overtime policy, and more.

Step 8: Register with Authorities and Set Up Payroll

Before any of your employees accept their contracts and begin working, it’s important to complete a few additional registration steps with the Moroccan authorities.

  • Register with the Moroccan Ministry of Industry, Trade, and Green and Digital Economy in order to obtain an ICE Number (Identifiant Commun de l’Entreprise)
  • Register with the Moroccan tax authorities (DGI) to get an IF number (Identifiant Fiscal)
  • Register for an RC number (Numéro de Registre de Commerce), which is used to identify companies
  • Register both the company and your employees with Moroccan social security (CNSS)

When you’re setting up a payroll system, make sure it is compliant with your responsibility to withhold taxes and remit those payments to the Moroccan tax collection agency. You also need to ensure that you are correctly handling social security contributions, which should be a total of about 21.1% from the company and 6.75% from the employee.

If you need assistance with running payroll in Morocco, you might consider an outsourced payroll solution.

Step 9: Onboard Your New Employees

Implementing an effective onboarding program will help new employees smoothly integrate into your company’s culture and become productive, efficient members of your workforce.

According to Forbes, strong onboarding strategies have been shown to increase engagement and retention rates – and these factors in turn contribute to greater customer satisfaction.

Any robust onboarding process should include these items, at a minimum:

  • Provide training and resources
  • Get to know peers and key stakeholders
  • Explain company policies, procedures, and expectations
  • Explore company culture and discuss company values
  • Set clear objectives and goals for the role

Key Employment Laws and Regulations

The Moroccan Labour Code

Morocco’s Labour Code is part of the Constitution of the Kingdom of Morocco. It aims to strike a balance between protecting the rights of workers and encouraging a desirable environment for businesses. You’ll find that the Labour Code covers items like required annual leave, sick leave, notice periods, and laws regarding just versus unjust termination.

Employment of both Moroccan nationals and foreign employees is governed under the Labour Code.

Social Security Regulations

Morocco’s social security scheme is run by the Caisse Nationale de Sécurité Sociale, or CNSS. Employers are required to contribute about 21.1% of each employee’s gross annual salary, while employees contribute an additional 6.75%. Contributing to the CNSS is mandatory for both employers and employees.

Types of Employment Contracts

Understanding the different types of employment contracts in Morocco is important when hiring in the country.

Indefinite-Term Employment Contracts

These are the most common types of contracts, and are often abbreviated as CDI. They have no predefined end date, and they are in effect until either party terminates the working relationship.

Fixed-Term Employment Contracts

Abbreviated as CDD, fixed-term employment contracts have a set end date and are used when there is a specific task or period that an employee is being hired for. As an example, you might use a CDD to hire coverage while another employee is on maternity leave, to tackle an ambitious project on a deadline, or to handle busier months during tourist season.

Working Hours and Overtime

Standard Working Hours

Morocco’s Labor Law sets the standard workweek at 44 hours with no more than 10 hours of work per day. There are several public holidays in Morocco, including the religious celebrations of Eid al-Fitr and Eid al-Adha as well as national holidays such as Throne Day.

Employers are required to offer paid leave on these holidays or compensate employees working on these holidays at double their normal rate. Employees are entitled to one, 24-hour “rest period” each week in which they do not work.

Overtime Regulations

Work exceeding the weekly limit of 44 hours and/or the daily limit of 10 hours yields additional compensation. Overtime during the day is paid at 125% of the employee’s typical hourly rate. Overtime during the night is paid at 150% of the typical hourly rate.

Leave Entitlements

In order to comply with the labor laws of Morocco, companies must offer the required leave entitlements (which include annual leave, sick leave, and parental leave) to their employees.

Annual Leave

Employees in Morocco are entitled to paid annual leave that amounts to 18 days for every full year of service. This paid leave is accrued at a rate of 1.5 days per month, beginning after six months of employment with the same company.

Sick Leave

In Morocco, employees are entitled to four paid sick days (which can also be used as eight half days) per year. If an employee is sick for more than four days, they must file a medical certificate proving the illness with their employer. Then, the employee may be eligible for a payout from the CNSS system at 66% of their normal salary for sick days after the fourth day.

Maternity and Paternity Leave

Morocco’s Labor Law provides new mothers with 14 weeks of paid maternity leave, which is funded by CNSS. This leave typically begins seven weeks before the due date and continues for seven weeks after the baby is born.

In order to qualify for paid maternity leave, a mother must have been employed for at least six of the previous 12 months. Employers are legally prohibited from terminating an employment contract during maternity leave. Fathers are entitled to just three days of paid paternity leave, which typically begins when the baby is born.

Termination and Severance

Probation Periods

In Morocco, there is a probation period at the start of most employment contracts that lets both parties test out the working relationship and terminate it without legal justification. These periods range from 15 days for on-site laborers to 90 days for office employees and three months for executive-level employees. They are not mandatory, but they are very common in Morocco.

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Notice Periods

After the probationary period ends, termination must be given with notice, and employers typically have to provide strong legal justifications. The notice period is a minimum of eight days, but that length can change based on the job type and seniority of the employee. For serious misconduct, a notice period may not be required – but the employee must prove misconduct.

Severance Pay

If an employee has worked for a company for more than six months in Morocco, severance pay is generally required. The severance pay depends on how long the employee has been with the company and follows this breakdown: 

Years of ServiceEquivalent Paid Leave
5 years or less96 hours of salary
6–10 years144 hours of salary
11–15 years192 hours of salary
15+ years240 hours of salary

Mandatory Contributions

Social Security Contributions

In Morocco, both employers and employees contribute to the Caisse Nationale de Sécurité Sociale (CNSS), which is Morocco’s version of a social security agency.

Employers are responsible for contributing about 21.1% of an employee’s gross salary, which is broken down into four categories: family allocation (6.4%), social allocation (8.98%), professional training (1.6%), and mandatory medical care (4.11%). Employees contribute an additional 6.75% of their gross salary to the CNSS. 

A mandatory medical care contribution is included in the CNSS social security scheme, so health insurance does not have to be addressed separately. CNSS is known for actively monitoring compliance, so you can expect penalties if you fail to register employees or remit contributions to CNSS appropriately. 

Explore key employee benefits and social security contributions in Morocco.

Workers’ Compensation

Morocco has relatively stringent laws about workers’ compensation. Employers must offer insurance for workplace-related injuries and diseases, and CNSS oversees the compensation programs.

Should an employee be injured on the job, they are entitled to medical treatment and financial compensation in proportion to their normal salary – the maximum benefit is 70% of the employee’s salary prior to injury.

The CNSS also employs labor inspectors, who are tasked with ensuring that employers provide reasonable safety measures to minimize risks in traditionally hazardous industries.

Payroll Taxes

Employers in Morocco also contribute to payroll taxes, which amount to about 1.6% of an employee’s salary after CNSS contributions. These contributions include levies for training programs as well as social housing schemes.

Optional Benefits

In addition to the mandatory benefits stipulated by law in Morocco, employees can also offer optional benefits to “sweeten the deal” and attract top talent.

Common optional benefits in Morocco include 13th-month bonuses (another month’s worth of salary, typically paid at the end of the year), seniority bonuses, health and wellness programs, childcare programs or stipends, and more.

Professional development and training are also attractive benefits that allow Moroccans to build their skills, benefiting both the company and the employee.

How to Hire Employees in Morocco – Our Take

When you are hiring employees in Morocco – or any foreign country, for that matter – you will be required to work with a complex set of legal requirements, including labor laws, mandatory contributions, and employee protections upheld by local civic codes.

Understanding these regulations and ensuring you are complying with the country’s legal stipulations is crucial for avoiding lawsuits and building a positive reputation as an employer in Morocco. 

If handling these requirements on your own goes above and beyond the capabilities of your HR team, working with an Employer of Record (EOR) in Morocco will yield a seamless process, saving you time, money, and effort as you expand your business.