Expand your organization into Morocco with or without a Moroccan entity
The North African country of Morocco is a fascinating mixture of culture, history, and landscapes. It is classified as an emerging economy, with strong signs of growth in many industries such as textiles and tourism. There are certainly many opportunities for foreign businesses looking to expand into the country.
If your business is planning an expansion into Morocco, then you should expect things to potentially take longer than planned. While the country continues to improve its administrative processes, there are still many inefficiencies which, coupled with the language and cultural barriers can make progress slow when trying to establish and grow a business.
At New Horizons, we help organizations of all kinds to expand abroad, including into Morocco. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to begin your Moroccan expansion in a matter of just days, not weeks or months, whether or not you already have an established entity in the country.
And as the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Moroccan workforce, along with any ongoing HR and compliance admin. Our bespoke services can save you thousands in expansion costs and provide you with a faster route into Morocco.
Our Morocco PEO will simplify your expansion
New Horizons enables your business to expand its operations into Morocco, without having to establish up a legal subsidiary.
Hiring in Morocco: Employment law overview
Employment contracts in Morocco
It is legally required for employers in Morocco to provide employees with a written employment contract. The contract should have all necessary details of the employment agreement such as salary, vacation leave, expected working hours, expected duties, and so on. It should also be written in the official language of Arabic and use the Moroccan dirham currency.
Working hours in Morocco
A normal working week in Morocco consists of 44 hours of work, usually from Monday to Friday.
Public holidays in Morocco
New Year’s Day
Anniversary of the Independence Manifesto
Daylight Saving Time ends
Labour Day/May Day
Eid al-Fitr holiday
Daylight Saving Time starts
Feast of the Throne
Eid al-Adha holiday
Anniversary of the Recovery Oued Ed-Dahab
Anniversary of the Revolution of the King and the People
Youth Day, Hijra New Year
The Prophet Muhammad’s Birthday
Anniversary of the Green March
Vacation leave in Morocco
Employees in Morocco are usually entitled to 24 days of paid vacation leave after they have worked with an employer for one year.
Sick leave in Morocco
Employees in Morocco are entitled to sick pay from the fourth day of absence onwards, usually at a rate of around 60-70% of normal pay. To qualify, they generally need to have worked for 54 days out of the last six months.
Parental leave in Morocco
Women in Morocco are usually entitled to 14 weeks of maternity leave at full pay and can choose to take a full year of leave unpaid. Male employees can usually take three days of paid leave for the birth of their child.
Terminations and severance in Morocco
Employees in Morocco are entitled to notice of termination, with between one and three months of notice depending on how long they have worked for their employer.
Upon termination, employees are usually entitled to a severance payment that varies based on their length of service.
Taxation in Morocco
Both employers and employees in Morocco need to pay toward social security schemes. For employees, the contribution is up to 6.29% of salary, and for employers, it is up to 20.1%.
The income tax rate in Morocco is between 0% and 38% depending on income level.
The corporate tax rate in Morocco is generally between 10% and 31% depending on profits.
Health coverage in Morocco
Morocco does have public healthcare, but many employers choose to offer private health insurance to employees to ensure a higher standard of care.
Morocco compensations & benefits
Compensation laws in Morocco
The minimum wage in Morocco for private-sector workers is 2 570.86 MAD per month (as of 2020).
Benefit management in Morocco
It can be difficult to understand and set up employee benefits in Morocco, and it can require a lot of time, effort, and investment on the part of employers.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Morocco employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.