MOROCCO PEO & EOR
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As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
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DID YOU KNOW
Moroccan culture is a unique blend of Arab, Berber, and European influences, resulting from its historical interactions with various civilizations.
Morocco’s diverse geography includes coastal plains, mountain ranges like the Atlas Mountains, and the expansive Sahara Desert.
Morocco is known for its rich history, vibrant markets, and stunning architecture. Cities like Marrakech and the capital city of Rabat attract visitors from around the world.
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Morocco PEO Services
Endless opportunities for investors and businesses
Alongside its colourful and enticing food (guaranteed to take you on a luscious culinary voyage), and its mesmerizing antique and historical monuments, Morocco provides endless opportunities for investors and businesses wishing to expand and enter a new market.
Morocco offers a young and multi-linguistic population who can speak Arabic, French and English fluently paired with a relatively low labour cost. This is topped with a political and economic soundness supported by the prominence of the King, Mohammed VI. The country also has a robust infrastructure (Morocco’s airport: Marrakech Menara and Casablanca’s Mohammed 5 are ranked 5th and 6th best airports in Africa respectively). Morocco also has an assistance measure and a legal framework very favourable to investors.
Working in Morocco
Employment Information
Thanks to its strategic location, Morocco offers privileged access to an international market of more than 1 billion consumers thanks to 54 free trade agreements (FTAs). In addition to being a gateway to be part of Africa’s fast growth potential, Morocco is used by many multinationals as a hub for their operation in Europe.
As part of the creation of a favourable environment for investment, Morocco has made significant efforts in public policy, particularly in terms of economic reforms, since the 1990s. These reforms are aimed at putting in place the legislative and regulatory instruments necessary for the functioning of a market economy. In this context, the improvement of the business environment has been initiated through reforms designed to ease investment procedures for foreign investors.
- Morocco has a 44-hour working week. The usual business days are Monday to Friday
- A minimum of 18 days of paid annual holiday is standard. Employees also receive one-and-a-half days of annual leave for every month of service
- Morocco has 13 public holidays.
- Compensation: Morocco’s monthly minimum wage is 2 828,71 MAD ($310). Salaries must be paid in the Moroccan currency and be distributed once a month, usually during the last days of the current month or the first days of the next month
- Employees are entitled to a seniority allowance starting from 2 years of continuous employment within the same company
- Both employers and employees contribute to the national social security scheme (CNSS). With some contributions being capped, the amount ranges and can be up to 6.74% of wages for employees and up to 21.09% for the employer’s contribution
- Morocco has universal health insurance, but most companies do provide a complementary health insurance covering up to 90% of a worker’s medical fees
Taxation
- The standard rate of VAT is 20%. Lower rates of 7%, 10%, and 14% apply to specifically designated operations.
- Exported goods and services (such as EOR services) are tax-exempt.
The income tax system in Morocco is called the IGR (Impôt sur le Revenue Salarial), and it is withheld at source to be paid by the employer directly. The net taxable salary includes the total gross compensation after deductions of non-taxable allowance, employees’ social security contributions, and additional contributions such as pension savings.
The scale of calculation of the income tax is fixed as follows:
- The income bracket up to MAD 30,000 is tax exempt
- 10% for the income bracket from MAD 30.001 to MAD 50.000
- 20% for the income bracket from MAD 50.001 to MAD 60.000
- 30% for the income bracket from MAD 60,001 to MAD 80,000
- 34% for the income bracket from MAD 80,001 to MAD 180,000
- 38% for the surplus
Visas
Foreigners can use a Business Visa to enter and stay in the country for business purposes for a limited period of time (usually up to 6 months).
Expatriates who wish to work full-time in Morocco must apply for a Work Residency visa. There are no expatriate quotas in place, however critical skills are required for a successful application.
This residence card must be renewed on a yearly basis.
Cultural Information
Morocco has 2 official languages: Berber and Arabic.
French is currently the primary foreign language and retains a major place in Morocco, as it is taught from kindergarten to university and serves as Morocco’s primary language of business.
English is expected to become Morocco’s primary foreign language in the next five years, as well as the foreign language most widely spoken among young people. Young Moroccans increasingly see English as a key skill to access education and career and cultural opportunities.
Spanish is also spoken by many Moroccans, particularly in the northern regions due to historic ties and business interactions with Spain.
The majority of the Moroccan population is Muslim, but Jewish and Christian people also constitute a considerable part of the Moroccan population. This makes it one of the most multicultural and diverse countries in Africa.
For people wanting an immersive experience in both Moroccan culture and traditions, the Medinas are the perfect choice. They can stroll the streets of each Medina and observe the hidden details of Moroccan daily life. As a Mediterranean country, Morocco is renowned for its friendly gatherings: from a refreshing tea ceremony to a delicious Couscous, the staple of solidarity to a colourful folklore celebration. Visitors to Morocco can ensure they will get back home with amazing memories to share.
Impacts from COVID-19
Like other countries around the world, Morocco’s employers and employees turned to remote working during the COVID-19 outbreak.
While the majority of big multinational companies have now adopted a ‘hybrid’ type of working, some have shifted towards remote working entirely, while others are back to full-time office working.