Income tax (IR)
Salaries are taxed under Article 73 of the Code Général des Impôts, using the scale reformed by the 2025 Finance Law. Tax is withheld monthly, at one twelfth of the annual scale.
| Annual net taxable income (MAD) | Rate |
|---|---|
| 0 – 40,000 | 0% |
| 40,000 – 60,000 | 10% |
| 60,000 – 80,000 | 20% |
| 80,000 – 100,000 | 30% |
| 100,000 – 180,000 | 34% |
| Above 180,000 | 37% |
Professional expenses: 35% of gross taxable salary when annual gross is up to MAD 78,000, and 25% above that, capped at MAD 35,000 a year. Employee CNSS and AMO contributions are also deductible.
Family charges: from 2026, tax is reduced by MAD 600 a year per dependant, for up to six dependants. The Morocco net salary calculator applies all of this.
Employees of Casablanca Finance City companies can opt for a flat 20% IR rate for up to ten years from 2026.
CNSS, AMO and vocational training tax
| Contribution | Employer | Employee | Cap |
|---|---|---|---|
| Family allowances | 6.40% | – | none |
| Short-term benefits | 1.05% | 0.52% | MAD 6,000 / month |
| Long-term benefits (pension) | 7.93% | 3.96% | MAD 6,000 / month |
| AMO health insurance | 4.11% | 2.26% | none |
| Vocational training tax (TFP) | 1.60% | – | none |
| Total below the cap | 21.09% | 6.74% |
Because only 8.98% of the employer rate is capped, employer cost doesn’t flatten much for senior hires.
Working time, leave and bonuses
- Hours: 44 a week (2,288 a year) in non-agricultural sectors, with a maximum of 10 a day.
- Overtime (Art. 201): +25% for daytime hours (6 am – 9 pm) and +50% at night. On the weekly rest day, +50% by day and +100% at night.
- Annual leave: 1.5 working days per month (18 a year), plus 1.5 days for every five years of service, up to 30.
- Maternity leave: 14 weeks. CNSS pays the daily allowance subject to the MAD 6,000 cap.
- Seniority bonus (Art. 350), mandatory: 5% of base pay after 2 years, 10% after 5, 15% after 12, 20% after 20 and 25% after 25.
- 13th month and Eid bonuses are customary in many companies and collective agreements, but not statutory.
Severance
Permanent employees with at least six months’ service who are dismissed other than for serious misconduct receive statutory severance (Art. 53):
- 96 hours’ wages per year for years 1–5;
- 144 hours per year for years 6–10;
- 192 hours per year for years 11–15;
- 240 hours per year beyond 15 years.
If a court finds the dismissal abusive, it can add damages, commonly 1.5 months’ wages per year of service, capped at 36 months. Follow the procedure (hearing, minutes, labour inspector).
Gotchas for foreign employers
- Foreign nationals need their employment contract approved by the Ministry of Labour before starting, normally after ANAPEC confirms that no suitable local candidate is available.
- Many online calculators still use the pre-2025 IR scale and the old family reduction.