Employment taxes

• Personal income tax in Morocco follows a progressive scale: 0 % for annual income up to MAD 40,000; then 10 % for MAD 40,001-60,000; 20 % for MAD 60,001-80,000; 30 % for MAD 80,001-100,000; 34 % up to MAD 180,000; and 37 % for income above that.
• Social security contributions (via Caisse Nationale de Sécurité Sociale / CNSS): For employees, component rates include 2.26 % for mandatory medical care (AMO) of the gross salary.
• Employers carry additional contributions estimated at 21.94% of the employee salary such as long-term and short-term social benefits, family allowances, work accident insurance, and professional training tax.

Leave policy

• Annual leave: After six months of continuous employment in Morocco, you begin accruing paid leave at about 1.5 working days per month or 18 days per year.
• Sick leave: Typically, the first 3 days of illness are unpaid, from day 4 onwards, payment from CNSS applies at a percentage of the average daily wage.
• Maternity leave: Female employees are entitled to 14 weeks of paid maternity leave at 100% of salary capped at 6000 MAD, covered by the National Social Security Fund (CNSS).
• Paternity leave: Fathers are entitled to 3 days of paid leave, granted immediately after the birth of the child, and can be taken continuously or separately within 1 month of the birth of the child. This leave is covered at 100% by the employer, and then reimbursed by the National Social Security Fund (CNSS).

Employment termination

• Grounds for termination: Employee's resignation, by mutual agreement, by the expiration of the contract, or unilaterally by the employer based on misconduct or during probation period.
• Notice periods in Morocco vary based on the length of service and whether the role is managerial or not. For less than 1 year of service, the notice period is typically 8 days, for 1-5 years of service, the notice period is 1 month, for more than that, the notice period is 2 months.
• Severance pay: Under the labour code of Morocco, employees who are terminated due to unfair dismissal are entitled to severance pay - 96 hours of wages per year of service for the first 5 years, then increasing to 144 hours for 6-10 years, 192 hours for 11-15 years, and 240 hours for more than 15years.

Hiring and contracts

• Written contracts are mandatory. Contracts must be in French and can be translated into English.
• Contracts must include name, remuneration, job description, location and working hours, trial period, paid time off, and obligations.
• Types of contracts: In Morocco, contracts can be indefinite (open-ended) as standard, and fixed-term contracts are also allowed for specific tasks.
• Probation periods are common in Morocco and can vary between 45-90 days.

Payroll and salary payments

• Salaries are paid monthly.
• The guaranteed minimum wage for private sector non-agricultural workers (SMIG) as of 2025 is MAD 3,266/month.
• Employers are required to handle tax and social security deductions automatically through payroll.
• Payslips must include all taxes, social security contributions, and bonuses.

Benefits

Mandatory:

• Social security (CNSS) registration and contributions for employee protection (pensions, health, disability).
• Paid leave entitlements as discussed above
• Legal rights around termination

Optional:

• Private health insurance (employers often supplement public coverage)
• Bonuses, performance incentives
• Training and professional development
• Flexible/hybrid working arrangements

Monthly living cost (Rabat Edition)

• Rent (1-bedroom in city centre): MAD 5,000-7,000
• Utilities (electricity, water, internet): MAD 800-1,200
• Internet: MAD 350-500
• Groceries: MAD 2,000-3,000
• Public transport + local travel: MAD 300-600
• Dining out/social/entertainment: MAD 800-1,500

How to get a local ID number (CNSS)

• As an employee in Morocco you’ll need to register with CNSS (social security) which issues a social security number. Employers generally handle initial registration within 30 days of hiring.
• For tax purposes, the tax authority may issue a tax ID if you are considered resident. For remote workers, treaties and residency rules apply.

Social security registration

• Employer must register employee with CNSS and remit both employer and employee contributions.
• Contributions produce eligibility for pensions, family allowances, health care benefits.
• If a foreign employee is seconded and a treaty exists, there might be exemptions from Moroccan social security.

Banking

• Opening a bank account in Morocco is straightforward. You’ll need standard documentation: passport/ID, residence permit, proof of address, and employment contract.
• Popular banks: Attijariwafa Bank, Banque Populaire, BMCE Bank
• Online banking is widely available.

Housing and rental process

• The rental process usually includes payment of the first month’s rent and a security deposit (often one month), and the lease (“contrat de location”) should be signed.
• Tenant rights: leases generally protect tenants from sudden termination, and landlords must respect contract terms.
• Utilities (electricity and water) must be set up in your name. Most apartment buildings are in good condition in major cities, but we recommend you to check the condition and ask about common-area fees.

Healthcare system

• Morocco has a public healthcare system and mandatory health insurance via AMO (part of social security) for salaried workers.
• In practice, many expats and employees choose private health insurance for faster access and private clinics.
• Major cities have good hospitals and clinics, while in remote areas, services may be more limited.

Driving and public transport

• Driving: You can drive with an international driving permit or convert your licence. Major roads and highways are good in cities and between main towns.
• Public transport: In cities like Casablanca and Rabat, there are trams, buses, taxis. Using these is cost-effective.
• Ride-sharing apps and taxis are available in urban centres.

Emergency and important contacts

Police: 190

Ambulance/medical emergency: 150

Fire: 177 (verify locally as numbers can vary)

Work permit and visa requirements

• To work legally in Morocco, foreign nationals typically need a work visa and a residence permit.
• The employer often initiates the process by sponsoring the work permit application, which includes providing necessary documentation and justifying the need for a foreign employee.
• If you stay over 183 days you may become tax resident, so tax and social security obligations may apply.

Business culture and work norms

• Business culture blends hospitality and relationship-building: expect meetings over tea, informal chats, respect for hierarchy.
• Punctuality is valued but flexibility helps.
• French and Arabic are widely used in business, and English in international/tech companies.