Payroll & Employment Guide Morocco flag

Payroll & Employment Guide Morocco

Morocco is gaining attention as a very strategic hiring destination, thanks to its young and educated workforce and growing expertise in core sectors in demand. The country features competitive labour costs and strong business ties to European and Middle Eastern markets, making it a top hiring choice for companies looking to scale their teams effectively and cost-efficiently.

Payroll & Employment Guide Morocco
CurrencyMoroccan Dirham (MAD)
LanguagesArabic
Minimum wageMAD 3,266
Employment cost18.85%
Working hours44 hours per week
VAT20%
Probation periodFrom 15 days to 3 months
Paid leave days18 days per year
Categories

Hiring guide

Morocco is a top choice for global hiring, especially among North African countries. Companies looking to hire talent from Morocco should understand the country’s employment regulations, including salary standards, working hours, contract types, employee benefits, termination rules, and other important terms.

Curious about salaries, hiring costs, and legal requirements in Morocco? Get our full hiring guide to learn more!

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Employment contracts

Employment contracts in Morocco are governed by both the Labour Code and the Code of Obligations and Contracts. They both address employment relationships and provide general legal frameworks for important employment terms, such as minimum wages, working hours, employee benefits, notice periods, and similar.

Notice periods: From 8 days to 3 months.

Termination of employment: Due to serious misconduct, non-serious misconduct, and economic reasons.

Explore all the details of employment contracts in Morocco. Get our full contract template now!

Employee benefits

Employers in Morocco must provide their employees with mandatory benefits in compliance with labour laws. Many employers in the country also offer extra benefits to stay competitive in the job market. Understanding both of these is essential to attracting and retaining talent.

  • Mandatory benefits: Health, pension, disability insurance.
  • Common perks: Meal vouchers, transport reimbursements.
  • Leave policies: Paid annual leave, sick leave, maternity/paternity leave.

Get a full breakdown of all the employment benefits available in Morocco.

Taxes

Morocco has a well-defined tax system that obligates employers to withhold personal income taxes and make contributions to mandatory social security schemes. Employers must also comply with VAT laws and other local tax obligations depending on their business activity.

Personal income tax rate: From 0% to 37%.

VAT: From 0% to 20%

Tax allowances: Personal deductions, charitable donations, mortgage interest, and others.

Additional tax reliefs: Tax reduction for dependents, internship tax exemptions, and exemption for new hires.

Want to get all the details about Morocco’s tax allowances and similar tax regulations?

Payroll

Wages in Morocco are determined either by individual agreement between the employer and employee or by an applicable collective agreement. Employers must also comply with national minimum wage requirements to stay compliant and maintain fair employment practices.

Salary payment deadline: Within a maximum of one month after the period for which the salary is due.

Taxes and contributions payment deadline: Monthly.

Payroll declarations deadline: Monthly.

Payroll currency: MAD

Work permits & visas

Foreign citizens who want to work in Morocco must have the necessary work permits and visas. The process, permit type, and costs are different depending on the applicant’s nationality, job role, and length of stay.

Types of permits: Work permit

Process length: 2 to 3 months

Process cost: Starts at €2000

Curious about the process of obtaining visas and work permits in Morocco? Get our full country handbook now, or click here to find out more!

EOR services

With EOR services, you can legally employ any individual in Morocco without opening a legal entity there. Your EOR provider will act as the legal employer for your team, managing responsibilities like:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

PEO services provide HR and administrative support for employers who already have their own legal entities in Morocco. You will remain the legal employer for your team, while your PEO provider handles:

  • HR and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

The Native Teams platform provides locally adjusted payroll calculators, fully compliant with local labour laws. Using our calculators, you can determine net and gross salaries, social security contributions, and other mandatory deductions for your team in Morocco.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

Last update: August 18, 2025

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Frequently asked questions

Freelancers and gig workers in Morocco are typically considered self-employed individuals and are responsible for managing their own taxes and contributions. As a client, you’re generally not required to withhold or pay taxes and contributions on their behalf. However, it’s very important to ensure that the working relationship remains clearly defined as freelance to avoid misclassification risks.