EMPLOYER OF RECORD IN MOROCCO
Expand your orbit in Morocco.
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Morocco at a glance
MAD
Currency, Moroccan Dirham
36.74M
Population
259.42B
GDP
53rd
Ranked Ease of Doing Business
Arabic
Language
Monthly
Payroll cycle
Benefits of hiring in Morocco?
Morocco is the fifth-largest economy in Africa and the third-largest in the northern regions of the continent. It’s the leading recipient of foreign direct investment from the Maghreb region in Africa.
Morocco has a strategic position in the world for international business. It opens the door to commerce entering the Mediterranean Sea and its surrounding countries. Likewise, it serves as a gateway to sub-Saharan Africa, as the Maghreb region facilitates entry for large corporations. At the same time, it is the only country in the region that serves as the main gateway to the Americas.
Morocco’s political system makes it a relevant business partner as its monarchy has implemented social and political reforms, resulting in economic stability that surrounding countries do not possess. The monarchy has succeeded in obtaining large amounts of direct foreign investments. Correspondingly, a number of well-known companies have established themselves in the region.
- The country has significantly improved its infrastructure, especially its mobile phone market, which has increased internet access and the capacity and quality of its seaports. This all provides a strong foundation for international recognition of its increased economic openness.
Morocco has a strategic position in the world for international business.
Wages and Salaries in Morocco
- Effective May 1, 2022, the Moroccan government has increased the minimum wage for both the public and private sectors. The minimum wages in Morocco are increased to MAD3,500 per month for the public sector and MAD2,902 per month for the private sector.
Leave Entitlements in Morocco
- Under Article 231 of the Moroccon Labor Code, employees aged 18 and over are entitled to 1.5 days of paid leave per month up to 18 days of paid leave per year of service. Employees under the age of 18 are eligible for two days of paid leave per month up to 24 days of paid leave per year of service.
Employment benefits in Morocco
Morocco’s government benefits programs are administered by the Caisse Nationale de Sécurité Sociale (National Social Security Fund). The state’s social security agency was founded in 1959 and provides social security services to Moroccan society. The agency collects contributions from employers and employees to maintain the Moroccan Social Security scheme, which maintains pensions, survivor benefits, short-term disability, long-term disability, healthcare, and paid leave entitlements.
Tax and Social Security in Morocco
- Individuals are considered Moroccan tax residents when either: They have a habitual residence in Morocco Their economic interests are centered in Morocco They stay in Morocco for more than 183 days within any given 365-day period
- They have a habitual residence in Morocco
- Their economic interests are centered in Morocco
- They stay in Morocco for more than 183 days within any given 365-day period
- Moroccan tax residents face taxes on their worldwide income. Non-tax residents are taxed only on Morocco-source income.
Tax thresholds in Morocco
- As of 2022, the Moroccan individual income tax brackets are:
Taxable Income | Tax rate |
|---|---|
Up to MAD 30,000 | 0% |
MAD 30,001 – MAD 50,000 | 10% |
MAD 50,001 – MAD 60,000 | 20% |
MAD 60,001 – MAD 80,000 | 30% |
MAD 80,001 – MAD 180,000 | 34% |
Above MAD 180,000 | 38% |
- As of 2022, the Moroccan corporate tax rate brackets are:
Taxable Income | Tax rate |
|---|---|
Up to MAD 30,000 | 0% |
MAD 30,001 – MAD 100,000 | 10% |
Above MAD 100,000 | 38% |
Health insurance in Morocco
- According to the United States International Trade Administration, the Moroccan government is the primary healthcare provider in Morocco with 85% of supply provided by public hospitals and 15% by private health centers.
- During the course of the Arab Spring in 2011, Morocco adopted a new constitution addressing health in several different articles. Article 31 gives the right to universal access to health services and Article 154 gives the right to quality health services.
- Most Moroccan residents have healthcare coverage through the primary source of health insurance: the Mandatory Health Insurance, L’Assurance Maladie Obligatoire (AMO). AMO, the payroll-based health insurance system, covers the costs of general medical appointments, surgical operations, childbirth and postnatal care, laboratory tests, oral health treatment, and paramedics.
Pension in Morocco
- Employees in Morocco are subject to eligibility requirements for the state’s old-age retirement pension. The requirements are as follows:
- Employees must be at least 60 years old with at least 3,240 days of contributions to the National Social Security Fund.
- The state’s old-age retirement pension is 50% of the employee’s average monthly covered earnings in the last 96 months. Additionally, employees receive 1% of their average monthly covered earnings for every 216 days of coverage exceeding 3,240 days. The maximum monthly old-age pension is 70% of the employee’s average monthly earnings. The minimum monthly old-age pension is MAD 1,000.
Payroll in Morocco
An employer of record in Morocco helps accelerate and simplify all payroll-related tasks.
- In Morocco, individual income tax is paid by withholdings made by resident employers. Individual income tax is not required for employees employed by one Moroccan resident entity and earning only employment income. For employees earning income from a non-resident entity or from several employers, filing a tax return by February 28 is required.
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