Capital: Rabat
Population: 38,028,870 (2023 est. Worldometer)
Monetary Unit: Moroccan Dirham
Language(s): Arabic, Standard Moroccan Berber
Morocco, a relatively liberal economy, is the 5th largest economy in Africa based on GDP. The main contributing factor to their economy is the services sector (tourism and telcom) which covers more than half of their GDP. It is then followed by the agricultural sector due to the country’s rich soil resources. 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 public holidays in Morocco are as follows.
- 11 Jan Independence Manifesto Day
- 22 Apr Eid al-Fitr
- 1 May Labour Day
- 29 Jun Eid al-Adha
- 19 Jul Islamic New Year
- 30 Jul Throne Day
- 14 Aug Oued Ed-Dahab Day
- 20 Aug Revolution Day
- 21 Aug Youth Day
- 28 Sep Prophet Muhammad’s Birthday
- 6 Nov Green March Day
- 18 Nov Independence Day
The Labour Code specifies maximum time limitations based on the category: 15 days for manual workers, six weeks for employees, and three months for management professionals. A single renewal for the same amount of time is allowed during the probationary term.
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.
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.
Working fathers receive 3 days’ paternity leave with full pay 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.
Employees are generally eligible for sick leave if they have 54 days of contributions in the prior six months of coverage. 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. Sick pay begins on the 4th day and is usually about two-thirds of the average daily wage.
Severance pay is due after 6 months of service. Severance Pay varies depending on the employee’s years of service. The calculation will be the employee’s average hourly rate X the number of hours they are entitled to based on how long they have worked for the company.
Years of Service Entitled number of paid hours
<5 96 hours pay (50% of one-month pay)
6 – 10 144 hours pay (75% of one-month pay)
11-15 192 hours pay (100% of one-month pay)
15 + 240 hours pay (126% of one-month pay)
13th / 14th Month Pay: Some companies offer a 13-month bonus, and seniority bonuses are also common. Although it is not required by law, workers must pay a seniority bonus that is equal to 5% of their income after two years of service, 10% after five years, 15% after 12 years, and 20% after 20.
Types of Visas
Morocco Tourist Visa: Morocco tourist visa, also known as the short-term visa, is usually permitted to every person who wants to visit Morocco. The duration implied in this visa is a maximum of 3 months. However, not everyone needs a tourist visa to travel. Some are allowed free entry on tourist visas which can get issued to anyone. Some of the purposes for which this visa gets issued are – business, personal visit, for sports event, tourism, journalism, medical treatment
Morocco Transit Visa: Morocco transit visa is authorized to a foreigner traveling three times across the territory, but the duration of this visa lasts only 72 hours.
Long-Term Morocco Visa: Long-term Morocco visas get issued to those who are likely to travel for work or the purpose of study or family reunification. Their technical validation is about three months. Morocco’s work visa is said to be the long–term Morocco visa issued to foreigners who come to Morocco for work purposes or join family members or any other long-term work. Just like the tourist visa, the technical validation of this visa is for three months. This type of visa allows the holder to apply for a Residency Card.
Types of Work Visa
All foreigners are required to hold a valid work visa to work legally in Morocco. Since Work Visa is under long- term visa, it is classified into three visa types:
- Work Visa: Employees looking for a job in Morocco must hold a work visa.
- Student Visa: Foreigners who want to study in Morocco must have a student visa.
- Family reunification visa: This is applicable for the families of foreign nationals who are working in Morocco.
Morocco Works Visa Requirements
The required documents are the main requirements of Morocco’s visa, and these documents are compulsory for issuing a work visa to Morocco.
- The Morocco visa application form
- Your passport and photocopies of your passport
- Passport size picture
- Proof of accommodation
- Proof of sufficient financial means
- Travel insurance
- Proof of paid Morocco visa fee
The specification on visa according to your purpose of visiting Morocco is –
If you are traveling for business, you will need the invitation letter of that respective company and a recommendation from the proper Ministry.
If you are traveling to attend any conference, you will need the joining letter of that individual organization, or if you are a govt worker, you will need your mission order.
If you are traveling for journalism work, you will need the proper approval from the govt. Authority of the communication ministry, support to film Morocco from the Ministry of Foreign Affairs and international cooperation, and a list of all the filming equipment you are bringing.
If you are traveling to attend cultural sports events, you will need an invitation from Morocco’s event department. If organized by a private organization, the invitation from the relevant ministry.
If you are traveling for medical treatment, you will need a medical certificate and proof that you can afford the treatment.
Work Permit Morocco
To obtain the work permit, the employees must apply for a Morocco working visa at a diplomatic mission in their country. The steps for the same are as follows:
- Make an appointment at the Morocco consulate or embassy
- Complete the visa application form
- Gather the required documents
- Submit all necessary documents at the embassy or consulate
- Pay the visa fee
- Wait for the visa to get processed
- Get the visa
If the employee does not have a local embassy or consulate, they must check if the Moroccan government will handle the visa submission with another agency or diplomatic authority. If not, the employees can directly apply to the Moroccan Ministry of Foreign Affairs and International Cooperation. Once the visa is approved, the employee can pick it up at the airport.
If you need a work permit for Morocco without a job offer, you have to stay there for 15 days and apply for the residency card or job offer cause the critical requirement of a work permit in Morocco is the employment contract.
The Moroccan Labour Code prohibits firing an employee without a good cause that is either connected to the employee’s skills or behaviour (a dismissal for personal reasons) or connected to the business’ operational requirements (dismissal for technological, structural or economic reasons).
Either the employee’s inability to perform the duties of the employment or disciplinary factors provide justification for the termination for personal reasons.
If the employee commits:
- a serious misconduct: the dismissal is instant
- a non-serious misconduct: the dismissal doesn’t happen until the employer has used all the disciplinary measures available against the employee for a full year.
The employment contract of one or more employees may be terminated by the employer for reasons unrelated to the employee’s person, i.e., dismissal for structural, technical, or economic reasons (Economic Dismissal). In the event of an Economic Dismissal, the dismissed employee is entitled to severance pay and notice compensation and benefits from a hiring priority during a year.
Moroccan employees are entitled to the following benefits during their employment: Paid Leaves, Health Insurance, Family Assistance, Old age Pension, Disability and Survivors Pension.
The working hours should not increase 8 hours a day or 48 hours a week. Twenty-six (26) days or 191 hours make an entire working month.
Employment agreement Morocco states that employees should not exceed 2 hours of overtime per day and 80 hours of overtime per year. For the daytime shift (6 am- 9 pm) the overtime compensation is 125% of basic salary and 150% for the night time shift (9 pm – 6 am).
Overtime during public holidays and weekends is 150% during daytime and 200% for night time. Employment agreement Morocco states that employees should not exceed 2 hours of overtime per day and 80 hours of overtime per year. For the daytime shift (6 am- 9 pm) the overtime compensation is 125% of basic salary and 150% for the night time shift (9 pm – 6 am).
Employment contracts may be terminated at the end of any month as follows:
- less than one year of service: one month’s notice
- two to nine years of service: two months’ notice
- more than 9 years of service: three months’ notice
Individuals who have their tax residence in Morocco are subject to an individual income tax on their worldwide income. Individuals not having their tax residence in Morocco are subject to tax only on Moroccan-sourced income.
Personal income tax rates.
The individual income tax is calculated based on the following progressive scale:
Annual taxable income (MAD) Tax rate (%)
0 to 30,000 Exempted
30,001 to 50,000 10
50,001 to 60,000 20
60,001 to 80,000 30
80,001 to 180,000 34
More than 180,000 38
Social security contributions, which are withheld by the employer, are based on gross compensation paid, including fringe benefits and bonuses. Employer contributions are paid, and employee contributions are withheld and paid, monthly.
The employer must pay 6.4% of gross monthly compensation for family allowances. For death pensions and for daily compensation for illness, disability and pregnancy leave, employers must contribute 8.6%, and employees 4.29% of gross monthly compensation, capped at MAD6,000.
In addition, the employer must pay 1.6% of gross monthly compensation as a contribution to the Moroccan office of staff training. An additional contribution for “loss of employment indemnity” is payable. Employers must contribute 0.38%, and employees 0.19% of the gross monthly compensation, capped at MAD6,000. Contributions on monthly gross remuneration are payable for mandatory medical insurance.
The contribution rates are 2.26% for employees and 4.11% for employers, except for companies exempted from this mandatory medical insurance, which pay at a rate of 1.5%. This exemption is provided for companies that were set up before 2005 and that are already contributing to private medical insurance
Employment Expenses
The deductions from gross salary concern, mainly, social security contributions, retirement contributions, and a lump-sum deduction equal to 20% of the gross salary (with a ceiling of MAD 30,000 per year). Finance Law 2015 sets the following limits for deductibility of pension insurance contributions:
50% of net taxable salary for individuals receiving only salary income.
50% of net taxable salary or 10% of the global taxable income for individuals receiving salary as well as other categories of revenues.
10% of the global taxable income for individuals receiving revenues other than salary income.
Personal Deductions
Charitable contributions are deductible if granted to organisms and societies expressly provided by the tax law. Loan interests relating to the acquisition of a main house are tax deductible up to the limit of 10% of the taxable global revenue.
VAT is levied under the Moroccan Tax Code and is due on all industrial, commercial, and handicraft transactions taking place in Morocco, as well as on importation operations.
The standard rate of VAT is 20%. Lower rates of 7%, 10%, and 14% apply to specifically designated operations.
Morocco’s Value-added tax (VAT) is administered by the Ministry of Finance in Rabat. Visitors to Morocco can qualify for a VAT refund on all purchases made for export
to register for income tax with your local tax office within two months of forming your company. Corporate tax rates vary by industry. For example, manufacturing companies owe 19% of profits, while public works businesses owe 23%.
WHT On Dividends: The standard WHT rate on dividends is set at 15% according to the Moroccan law (unless reduced by treaty). WHT does not apply to dividends paid to Moroccan companies subject to Moroccan CIT, subject to the delivery of a property attestation. A branch tax of 15% applies to the net income transferred by the Moroccan branch to foreign entities (may be reduced by the tax treaty).
WHT on Interests: The standard WHT on interest paid to non-resident entities is set at 10% as provided by the Moroccan law (unless reduced by treaty). However, the Moroccan law provides that interest on loans granted in foreign currency with a maturity exceeding ten years is exempt from WHT.
WHT On Services Paid to Non-Resident Entities: According to the Moroccan Tax Code, all payments of all kinds of services rendered by non-resident entities are subject to WHT at the rate of 10%. However, it shall be noted that treaty dispositions limit the scope of application of WHT only to remunerations that constitute royalties. Such dispositions overrule the domestic tax law provided by the Moroccan law.