As you build your team in Morocco, providing the right compensation and benefits will help attract employees and encourage greater retention rates. It’s also important to adhere to Morocco compensation laws and statutory benefits requirements.
Morocco compensation laws
The minimum wage in Morocco is often set by sector, and from time to time the authorities will set a national minimum wage for all professions. Collective Bargaining Agreements (CBAs) may also contain certain minimum wage requirements and scales.
Typically, employees work 44 hours a week from Monday to Friday. Overtime is compensated per an employment contract or a CBA. Since Morocco compensation laws can vary based on these agreements, it’s best to understand them thoroughly before hiring.
Guaranteed benefits in Morocco
Your Morocco benefits management plan must include statutory benefits required by the country. For example, employees should receive time off for Morocco’s 13 national holidays in addition to the legally required paid annual leave. Sick leave pay is another guaranteed benefit that employees are eligible for through social security if they’ve made 54 days of social security contributions within the 6 months prior to coverage. Sick pay usually equals 2/3 of an employee’s average daily wage and begins on the 4th day.
Pregnant employees usually receive 14 weeks of paid maternity leave at their normal salary. They also have the option to take 1 year of unpaid leave. A guaranteed benefit for new fathers is 15 days of paid paternity leave.
Morocco benefits management
Employers need to factor additional benefits into their Morocco benefits management plan to encourage employees to remain happy and engaged in their positions with the company. While Morocco compensation laws do not dictate a 13th-month bonus, some companies still offer it as well as seniority bonuses. Other common supplemental benefits include:
- Company pensions.
- More paid vacation time.
- Childcare allowances.
- Transportation allowances.
- Additional health insurance.
- Fitness allowance.
- Job training.
Morocco uses a public/private healthcare system, where the national healthcare system covers basic healthcare and some hospital care. Private insurance is available at private clinics, and many employers choose to offer a private insurance plan as a supplemental benefit.
Restrictions for benefits and compensation
The biggest restriction for benefits and compensation in Morocco is that you must establish a subsidiary before you can hire employees and pay them. However, with a global EOR like G-P, you can establish a competitive benefits plan and hire top talent in full compliance with local laws – no entity required.
Morocco employee benefits plans
Benefits plans support your growth in a few ways. They make your company stand out in the labor market and encourage job seekers to apply for your vacancies. A strong benefits plan also improves morale within the workplace and increases retention in the long term.
Legal obligations for benefits
While your supplemental benefits will make your company competitive in the labor market, you should first focus on your legal obligations. Moroccan employment regulations require:
- Paid annual leave
- Public holidays off
- Sick leave
- Maternity leave
- Social security contributions
Designing your Morocco employee benefits plan
As you create your benefits plan, you’ll need to establish a balance between your company’s resources and employees’ needs. You should also consider the standards in the labor market and how you can compete with other businesses.
While the specifics of your plan will vary between countries, you can follow a few basic steps, regardless of your location.
1. Examine your resources and goals.
Benefits start with your company’s revenue. It’s helpful to assess your company’s resources and expenses to create a budget for your benefits spending. You can also use this initial stage to address your goals and how your benefits may help you achieve them.
2. Research employees and the labor market.
You can only compete with other businesses if you know what they’re offering. Dedicate your second stage to researching the labor market and learning about the benefits packages offered by companies similar to yours. Consider factors like size and industry to guide your research.
It’s also wise to talk to employees directly about their needs and expectations. Distributing surveys or conducting interviews can help you learn what workers in the area want from their employer.
3. Create a plan based on your findings.
With your research and budget in place, you can build a plan that strikes a balance between your company and your teams. Start by allocating funds toward any required benefits, then distribute the remainder to fringe provisions you identified during your research.
Average cost of benefits
Expenses vary between companies based on the benefits they choose to offer. Factors like size, location, and industry can all play a role in the cost of benefits. There’s not a reliable average number you can use to guide your spending, so you should create a budget based on your unique needs instead.
How to calculate benefits
Benefits calculations will vary based on the provisions you offer. For example, if you choose to provide a 13th-month bonus, you’ll have to determine the monthly earnings for every employee to calculate their given amounts.
You can rely on local labor laws for guidance on benefits calculations, such as leave provisions and social security contributions. Currently, employers must contribute 21.09% of employees’ earnings for social security purposes. Employees must contribute 6.74%.
How are employee benefits taxed in Morocco?
Any benefits, cash-based or otherwise, qualify as income. Since employers are obligated to deduct income taxes from employees’ paychecks, you’ll need to factor benefits values into your calculations.
Employee health benefits
Morocco’s healthcare system is primarily funded by the government, giving many people access to low-cost or free care. That said, the country has public and private sectors for care. Employers and employees must contribute to the nation’s social security scheme, which partially funds the public health system.
Employers are not obligated to provide health insurance beyond the required social security contributions. However, you may choose to provide supplemental health insurance for private care and expenses not covered in the public sector.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.