When you decide to expand your business to Morocco, you need to consider your different Morocco payroll options, compliantly hire the right employees, and make sure your payroll setup meets all of Morocco’s employment laws.
Taxation rules in Morocco
Both employers and employees have to contribute to social security in Morocco. The contribution amount ranges from 6.74% of wages for employees and up to 21.09% for employers.
Employees must contribute to the social security regime managed by the Caisse Nationale de Sécurité Sociale (CNSS).
CNSS rates are as follows and apply to the gross salary, excluding exempted allowances and indemnities.
| Contribution | Employee portion (%) | Employer portion (%) |
| Family allocation | – | 6.40 |
| Social allocation | 4.48 | 8.98 |
| Professional training | – | 1.60 |
| Mandatory medical care | 2.26 | 4.11 |
Employers also have to contribute to a corporate income tax rate of 31%, or 37% for insurance, banking, and financial institutions. Some companies with a taxable income of MAD 300,000 get preferential corporate tax rates.
VAT is levied under the Moroccan tax code. The standard rate of VAT is 20%.
Morocco payroll options for companies
Companies have 3 main Morocco payroll options to choose from:
- Internal: You can also choose to run internal payroll out of your subsidiary if you’re committed to Morocco. However, you’ll need to hire a larger HR team and have complete knowledge of the country’s compliance laws.
- Morocco payroll processing company: You could also choose to work with a Morocco payroll processing company that takes care of setting up your payroll. However, you’ll still need to make sure your outsourced payroll is compliant.
- G-P: The easiest way to run payroll in Morocco and stay compliant is partnering with an Employer of Record like G-P. With our team as your guide, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in Morocco
If you opt to set up your Morocco payroll alone, you’ll need to learn and adhere to all of the country’s employment laws. You’ll also have to establish a subsidiary in Morocco before you can hire employees, run payroll, and disperse compensation and benefits. Depending on where you incorporate and the entity you choose, it could take months before you can legally begin to hire employees.
Entitlement/termination terms
We recommend outlining entitlement and termination terms in a written employment contract before hiring employees and adding them to your Morocco payroll. The country allows probationary periods that can be renewed once after their initial duration. If you decide to terminate an employment contract, you need to follow notice periods outlined by the length of the employee’s service as well as the specific process required depending on the reason for termination. Employees are typically eligible for a severance payment that’s also based on their length of service.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.