Our guide to Payroll in Morocco

Doing Business in Morocco

Investing in Morocco

Morocco in 2026 continues to strengthen its position as one of North Africa’s most attractive business destinations, ranking 1st in North Africa for Innovators’ Business Environment with structural strengths in regulation, infrastructure and investment conditions.

The country enjoys steady growth, with GDP expected to increase +3.7% in 2026, supported by industrial production, tourism and improved agriculture.

Morocco is also considered “moderately free” economically with improvements in competitiveness and private-sector development.

Basic Facts about Morocco

Population: ~38 million (2025).

GDP: USD 154.4 bn (2025).

Government: Constitutional Monarchy.

Capital: Rabat

Currency: Moroccan Dirham (MAD)

How to say?

Hello: سلام / أهلا (Salaam / Ah-lan)

Good Morning: صباح الخير (Sbah l-kheer)

Good Evening: مسا الخير (Msa l-kheer)

Do you speak English? كتقدر تهدر بالإنجليزية؟ (Kat-qdr t-hdr b-l-Inglizia? (to a man)
Kat-qdri t-hdri b-l-Inglizia? (to a woman)

Goodbye: بسلامة (B-slama)

Thank you: شكرا (Shukran / Choukran)

See You Later: نشوفك من بعد (N-shufek men ba‘d (to a man)
N-shufek(i) men ba‘d (to a woman))

Public Holidays (2026)

Official national and religious holidays include:

• Jan 1 – New Year’s Day
• Jan 11 – Independence Manifesto
• Jan 14 – Amazigh New Year
• May 1 – Labour Day
• Jul 30 – Throne Day
• Aug 14 – Oued Ed-Dahab Day
• Aug 20 – Revolution Day
• Aug 21 – Youth Day
• Oct 31 – Unity Day (New for 2026)
• Nov 6 – Green March
• Nov 18 – Independence Day
• Religious holidays:
• Ramadan begins ~Feb 18
• Eid al-Fitr: ~Mar 20–21
• Eid al-Adha: ~May 27–28
• Hijri New Year: Jun 17

Registrations & Establishing an Entity

Business registration has become more streamlined with improved administrative procedures. Licensing processes remain costly but easier than before.

Legal entities include: SA (Public Limited), SARL (Limited Liability), Partnerships and Branches.

Setting Up Legal Structure

Common entity forms:

• SARL – Most common for SMEs; requires 1+ shareholders.
• SA – Required for large or regulated activities.
• Branch Office – Foreign companies may set up a Moroccan branch.

Banking

Morocco’s financial system is highly competitive, with a strong banking sector and active capital markets that encourage investment, including ESG-aligned reporting initiatives.

Financial freedom score remains high (80/100).

Working Week

The standard working week is 44 hours, typically 8 hours/day under Morocco’s Labour Code. (Supported across employment law and minimum wage calculations.)

Employment Law

Morocco’s Labour Code (Law 65-99) governs employment.

Holiday Accrual / Calculations

Employees accumulate:

• 1.5 days per month → 18 days annual leave minimum.
  Public holidays are separate and fully paid.

Maternity / Paternal Leave

• Maternity leave: 14 weeks (Labour Code).
• Fathers traditionally get 3 days, but 2026 reforms may extend leave (government debates ongoing).

Sickness Leave

Requires medical certificate; allowances may be paid via CNSS depending on contributions.

National Service

Morocco has compulsory national service, revived in recent years for youth (but not employer-administered).

Labour Law Reforms (Major in 2026)

The government is rewriting the Labour Code to address:

• Working time rules
• Wage calculation issues
• Enforcement mechanisms
• Stronger penalties for non-compliance

Additional reforms include:

• Legal recognition of platform workers
• Allowing multiple employers for CNSS contributors
• Regulation of remote work with protections for digital workers

Tax & Social Security

Tax Rates

Corporate Tax (CIT) – 2026

Morocco’s Finance Law 2026 continues progressive rate unification:

• Up to MAD 300,000 → 17.5%
• MAD 300,001–1,000,000 → 20%
• MAD 1M–100M → 22.75%
• Above 100M → 34%
• Credit institutions & insurance companies will reach 40% CIT in 2026.

A minimum contribution of 0.25% of turnover applies even if loss-making.

Personal Income Tax (IR) – 2026

The 2026 Finance Law reduced the top bracket to 37% and increased the tax-free threshold to MAD 40,000.
Brackets:

• 0–40,000 MAD → 0%
• 40,001–60,000 MAD → 10%
• 60,001–80,000 MAD → 20%
• 80,001–100,000 MAD → 30%
• 100,001–180,000 MAD → 34%
• 180,000+ → 37%

Professional expense deduction: 20% (capped at 30,000/year).
Family allowance: 500 MAD/dependent (max 3,000).

VAT

Standard VAT = 20%; reduced rates 10%, 14% and exemptions.

Social Security (CNSS)

CNSS contributions (employee + employer) 2026:

Employee Contributions

• 4.48% Social benefits (capped at 6,000 MAD)
• 2.26% AMO (health insurance, uncapped)
  Total: 6.74% employee cost

Trading Economics also confirms the 6.74% employee rate for 2026.

Employer Contributions

Employer CNSS contributions include:

• 6.40% Family allowance
• 8.98% Social allocation (capped at 6,000 MAD)
• 4.11% Health insurance
• 1.60% Training tax
• Additional Social Solidarity contributions (1.5–5%) depending on profits
  Total employer cost: 20.71% to 25.71%

Minimum Wage 2026

Morocco approved a 5% minimum wage increase effective 2026.
New rates:

• SMIG (non-agricultural): 17.92 MAD/hour (from Jan 1, 2026) → approx. 3,422.72 MAD/month
• SMAG (agricultural): 97.44 MAD/day (from Apr 1, 2026)

Payroll

Payroll in Morocco is monthly.

Employers must calculate:

• Monthly CNSS
• Monthly IR withholding
• Statutory minimum wage compliance
  Payroll reports include:
• CNSS declarations
• Tax declarations to DGI
• Pay slips (mandatory)

New Employees

• Must be declared to CNSS at hiring.
• Employment contracts (for foreigners) must receive a visa from the Ministry of Labour.

Leavers

• Deregistration from CNSS.
• Final pay including unused leave and indemnities must be processed as per Labour Code.

Employee Benefits

Mandatory benefits include:

• CNSS social security (retirement, family, sickness, disability)
• AMO health coverage
• Paid leave entitlements
• Overtime compensation
• Severance allowances

Optional employer-provided benefits:

• Supplementary health insurance
• Private pension (CIMR)
• Meal, transport, performance bonuses

Visas & Work Permits

Foreign workers must obtain:

1. Work Contract Visa approved by Labour Ministry (Articles 516–521).
2. ANAPEC labour market test certifying no suitable Moroccan candidate.
3. Long-stay visa and residence permit (Carte de Séjour).

Work permit processing: 1–2 months; visa issuance: 2–8 weeks

Key Changes for 2026

Minimum Wage Increase (5%)

SMIG → 17.92 MAD/hr; SMAG → 97.44 MAD/day.

Labour Code Rewrite by May 2026

Addressing wage calculation, working hours, enforcement.

Recognition of Remote Work & Platform Economy

New flexibility, digital rights and multi-employer rules.

Tax Reform — 2026 Finance Law

• CIT bracket unification

• IR top rate reduced to 37%

• Tax-free threshold raised to 40,000 MAD

New Public Holiday: Unity Day (31 October)

Added in 2026 national calendar.