Employees in Morocco — and around the world — are usually most concerned with two factors: compensation and benefits. Providing the right compensation and benefits helps encourage greater retention rates and employee happiness. However, meeting Morocco compensation laws and statutory benefit requirements will also help you stay compliant. Globalization Partners offers Morocco compensation and benefits outsourcing to help take the stress out of compliance.
Morocco Compensation Laws
Morocco recently updated its minimum wage for state body and public administration employees. Wages will gradually increase up to MAD 400 or 500 per month from 2019 to 2021. These wages often vary based on position and sector, so you should research the Moroccan compensation laws relating to your employees before drafting an employment contract.
Typically, employees work 44 hours a week from Monday to Friday. Overtime is compensated per an employment contract or a collective bargaining agreement. Since Morocco compensation laws can vary based on these agreements, it’s best to understand them from front to back before hiring.
Guaranteed Benefits in Morocco
Your Morocco benefit 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 24 days of paid annual leave after one year of service. Sick leave is another guaranteed benefit that employees are eligible for if they’ve contributed 54 days of work in six months of coverage. Sick pay usually equals two-thirds of an employee’s average daily wage and begins on the fourth day.
Female employees usually receive 14 weeks of paid maternity leave at their normal salary. They also have the option to take one year of unpaid leave. A guaranteed benefit for new fathers is three days of paid paternity leave.
How to Disperse Benefits in Morocco
Employers need to factor additional benefits into their Morocco benefit management plan to encourage employees to stay 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 will 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. Globalization Partners changes this process through our Employer of Record solution. When you choose us for Morocco benefit and compensation outsourcing, we’ll make sure you stay compliant and offer a competitive plan for employees. Plus, we’ll hire top talent to help you grow your new business location.
Contact Us Today
If you’re ready to expand to Morocco, Globalization Partners can help. Contact us today to learn more about our Morocco compensation and benefit outsourcing services.