Establishing and running payroll in Morocco
The diverse North African nation of Morocco has an emerging economy with plenty of excellent opportunities for businesses looking to expand into the region.
If you are planning a Moroccan expansion, one of your first steps will probably be hiring a local workforce. To do this you will generally need a legal entity in the country and will need to establish an in-country payroll and employment infrastructure. This can be a long and difficult process in many cases, taking several months to complete and causing delays.
At Horizons, we specialize in helping organizations spanning all industries expand internationally, including into Morocco. We can handle your payroll setup and management, even if you don’t have a legal entity in Morocco.
Why choose the Horizons payroll solution?
If you have an entity
If your organization has already registered an official entity in Morocco, then you can outsource your payroll setup and management to us to get expert support and to fast-track your operations.
This level of outsourcing is perfect for larger organizations that are looking to expand into Morocco long term.
If you don’t have an entity
For organizations that have not already registered an entity in Morocco, we offer our standard payroll outsourcing service with the added use of our Morocco subsidiary. Our subsidiary will act as employer of record for your local workforce, meaning you won’t have to go through the long and cumbersome process of registering a legal entity in Morocco.
This service provides a low-risk, flexible, and scalable option for organizations interested in expanding into Morocco.
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Morocco payroll guide
Taxation and withholdings requirements in Morocco
Both employers and employees in Morocco need to pay toward social security schemes which support employees in various ways. For employees, the contribution is up to 6.29% of salary, and for employers, it is up to 20.1%.
The income tax rate in Morocco is between 0% and 38% depending on income level.
The corporate tax rate in Morocco is generally between 10% and 31% depending on profits.
Entitlements and terminations in Morocco
Employees in Morocco are entitled to notice of termination, with between one and three months of notice depending on how long they have worked for their employer.
Upon termination, employees are usually entitled to a severance payment that varies based on their length of service.
How to establish a Moroccan payroll
In most cases, a foreign organization looking to establish a payroll in Morocco will need to register an official entity within the country. This can take longer than expected, and you will need you to closely adhere to the country’s complex employment regulations.
An alternative is to outsource your payroll setup and management to Horizons. Our experts can offer the use of our Moroccan subsidiary to act as employer of record for your employees in Morocco, so you can avoid the complex setup and management process, and can benefit from our solutions even if you don’t have a legal entity in Morocco. Additionally, we can set up and run your payroll, HR, compliance, and any other associated work, allowing you to work on successfully expanding your businesses in Morocco.
Manage payroll in Moroccan
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.