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Morocco, formally the Kingdom of Morocco, is the northwesternmost nation in North Africa's Maghreb area. It has land boundaries with Algeria to the east and the disputed area of Western Sahara to the south, and it overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west. Moroccan territory also includes the Spanish exclaves of Ceuta, Melilla, and Peón de Vélez de la Gomera, as well as other minor Spanish-controlled islands off its coast. It has a population of over 37 million people and an area of 446,300 km2 (172,300 sq mi) or 710,850 km2 (274,460 sq mi). Its official religion is Islam, and its official languages are Arabic and Berber; the Moroccan variety of Arabic and French are also commonly spoken. Moroccan identity and culture are a fusion of Berber, Arab, and European influences. Rabat is the capital, while Casablanca is the biggest city.
Inhabited since the Paleolithic Era about 90,000 years ago, Idris I created the first Moroccan kingdom in 788. It was afterwards governed by a succession of autonomous dynasties, reaching its height as a regional power in the 11th and 12th centuries, when it dominated much of the Iberian Peninsula and the Maghreb under the Almoravid and Almohad dynasties. Morocco experienced external challenges to its sovereignty in the 15th and 16th centuries, with Portugal taking some land and the Ottoman Empire approaching from the east. Otherwise, the Marinid and Saadi dynasties resisted foreign dominance, and Morocco was the only North African kingdom to avoid Ottoman rule. The Alaouite family, which still administers the nation today, acquired power in 1631 and established diplomatic and economic contacts with the Western world during the following two centuries. Morocco's strategic position at the mouth of the Mediterranean piqued European interest again; in 1912, France and Spain partitioned the country into protectorates, with Tangier designated as an international zone. Following a series of riots and revolts against colonial authority, Morocco achieved independence and reunified in 1956.
Morocco has been largely stable since its independence. It has the African continent's fifth-largest economy and major influence in both Africa and the Arab world; it is seen as a middle power in global affairs and is a member of the Arab League, the Union for the Mediterranean, and the African Union. Morocco is a semi-constitutional unitary monarchy with an elected parliament. The King of Morocco and the prime minister lead the executive branch, while the two houses of parliament, the House of Representatives and the House of Councillors, have legislative authority. The Constitutional Court has judicial authority and may assess the legality of legislation, elections, and referendums. The king has broad administrative and legislative powers, particularly over the military, foreign policy, and religious matters; he may make lawful decrees known as dahirs, and he can dissolve parliament after consulting the prime minister and the president of the constitutional court.
Morocco claims control of Western Sahara, a non-self-governing area that it has designated as its Southern Provinces. After Spain decided to decolonize the area and hand over sovereignty to Morocco and Mauritania in 1975, a guerrilla conflict erupted between those governments and part of the locals. Mauritania renounced its claim to the territory in 1979, but the struggle raged on. A cease-fire deal was achieved in 1991, but the question of sovereignty remained unresolved. Morocco now controls two-thirds of the area, and attempts to end the conflict have so far failed to break the political impasse.
An employee earns 1.5 days of leave every month after six months of continuous employment, for a total of 18 days of yearly leave.
Every five years, the length of paid yearly leave is raised by one and a half days, until a maximum of 30 days is attained.
Morocco recognizes twelve public holidays.
Employees are entitled to four days of paid sick leave each year, or eight half days. If the absence is expected to be more than four days, the employee must notify the employer and present a medical certificate to justify the absence.
If an employee is absent from work for more than 180 days in a year due to illness, the employer may require them to quit.
Employees who are pregnant are given 14 weeks of maternity leave, seven of which must be spent after the baby is born.
Within the first month of the child's birth, fathers are entitled to three days of leave.
Apart from maternity and paternity leave, there is no parental leave.
Marriage Leave:
the employee: 4 days
child of the employee or of a child from a previous marriage of the employee’s spouse: 2 days
Bereavement Leave:
spouse, of a child, of a small child, of an ascendant of the employee or of a child from a previous marriage of the employee’s spouse: 3 days
brother, a sister of the employee, a brother or sister of the employee’s spouse or an ascendant of the spouse: 2 days
Leave for Circumcision: 2 days
Leave for surgery on the spouse or dependent child: 2 days
Employers must have sufficient reasons and provide notice before terminating an employee.
The length of the notice period differs between the executives and the employees. For executives and similar positions, those who have less than a year of service will receive a one-month notice. For executives with one to five years of service, the notice period is two months. For executives with more than five years of service, the notice period is three months.
For regular employees employed for less than a year, the notice period is 8 days. If the employee has been employed for 1 year to 5 years, the notice period is 1 month. Finally, for employees who have been employed for more than 5 years, the notice period is 2 months.
Every position begins with a one-week trial period. Probation periods for executives and similar positions are set at three months, while employee probation periods are set at 1.5 months. The trial period may be extended a single time. The trial period for fixed-term contracts may not exceed one day per working week within a two-week period if the contract is less than six months in duration, and may not exceed one month if the contract is more than six months in duration.
The contract employee is entitled to compensation if he or she is terminated after six months of employment with the same company. The termination indemnity is equal to 96 hours of salary for the first five years, 144 hours of salary from six to ten years, 192 hours of salary from eleven to fifteen years, and 240 hours of salary for periods exceeding fifteen years. The termination indemnity is calculated using the average weekly wage received in the fifty-two weeks preceding the contract's termination.
In Morocco, a full month of employment is defined as 26 days or 191 hours of work. The usual work year is 2,288 hours spread across 44 hours per week from Monday to Friday, assuming weekday hours do not exceed ten per day.
Weekly rest should include at least one day on Friday, Saturday, Sunday, or the weekly market day.
After discussions with labor unions, female employees may work night shifts.
Overtime hours are limited to two per day and 80 per year. With consent from the Worker's Council, overtime may be increased to 100 hours per year. Overtime pay is 125 percent of the basic rate during the day (6 a.m. to 9 p.m.). Overtime is paid at 150 percent of the basic rate for labor performed at night (9 p.m. to 6 a.m.). Weekends and public holidays, overtime is doubled to 150 percent for daytime work and 200 percent for evening work, in addition to getting an alternate day of rest. The complete amount of overtime must be paid on the salary's next pay date.
Morocco has increased the minimum salary for workers of state bodies and public administration. From 2019 to 2021, wages will progressively rise to MAD 400 or 500 per month. These salaries often change according to job and industry.
Morocco's healthcare system is a mix of public and private. All Moroccans are required to join in AMO, the country's public healthcare system, which provides basic healthcare as well as some hospital treatment. Access to private clinics is also possible with private insurance.
Company pensions, extra vacation, child care allowance, transportation allowance, supplementary insurance, fitness allowance, and training allowance are all common employee perks in Morocco.
In general, according to the Moroccan Tax Code, all income and capital gains produced in Morocco are subject to Moroccan taxes. The difference between a company's trade revenue and expenditure is taxed. Unless expressly excluded, business expenditures spent in the course of doing business are usually deductible.
The tax rate for a taxable income of up to MAD 300,000 is set at 10 percent.
The tax rate for a taxable income from MAD 300,001 to MAD 1,000,000 is set at 20 percent.
The tax rate for a taxable income more than MAD 1,000,001 is set at 31 percent.
For some companies, such as exporting companies, mining companies, companies carrying out service outsourcing activities inside or outside the industrial integrated platforms devoted to those activities, and so on, the rate of 20% is also applicable to the portion of the taxable profit above MAD 1 million.
The rate of 31% is lowered to 28% for businesses with an industrial activity and a net profit of less than MAD 100 million. Credit institutions, insurance firms, and Takafoul insurance and reinsurance businesses have a higher CIT rate of 37%.
Non-resident businesses may, under certain circumstances, elect to pay an alternative tax of 8% of the contract value, regardless of taxable income.
Individuals with their tax home in Morocco must pay an individual income tax on their global earnings. Individuals who do not have their tax domicile in Morocco are solely taxed on Moroccan-sourced income.
The individual income tax is calculated on the basis of the following progressive scale.
For an annual taxable income of MAD 0 to MAD 30,000, the individual is exempted from the personal income tax.
For an annual taxable income of MAD 30,0001 to MAD 50,000, the individual is imposed a 10 percent income tax rate.
For an annual taxable income of MAD 50,0001 to MAD 60,000, the individual is imposed a 20 percent income tax rate.
For an annual taxable income of MAD 60,0001 to MAD 80,000, the individual is imposed a 30 percent income tax rate.
For an annual taxable income of MAD 80,0001 to MAD 180,000, the individual is imposed a 34 percent income tax rate.
For an annual taxable income beyond MAD 180,000, the tax rate is set at 38 percent.
VAT is imposed under the Moroccan Tax Code and is payable on all industrial, commercial, and handicraft transactions that take place in Morocco, as well as importation activities. The normal VAT rate is 20%. Lower rates of 7%, 10%, and 14% apply to certain activities.
If the items sold are delivered in Morocco, the transaction is deemed to take place in Morocco and is therefore liable to VAT. If the services offered are consumed or utilized in Morocco, the transaction is deemed to take place in Morocco and is therefore liable to VAT.
There are two kinds of VAT exemptions available. The first is an exemption with credit, which is comparable to the zero-tax idea. The second option is an exemption without credit.
Foreigners who desire to work in Morocco must first get a work permit (attestation de travail) from the National Agency for the Promotion and Employment of Skills (Agence Nationale de Promotion de l'Emploi et des Competences), abbreviated as ANAPEC.
The documents required for getting a work permit include:
(1) Application forms with the appropriate stamps;
(2) Passport copies;
(3) Photographs, passport-size;
(4) Employment contract copy (legalized by the government office); and
(5) Copies of degrees and diplomas.
All firms intending to sponsor foreign nationals for work in Morocco must use the online site Taechir, according to the Ministry of Labour and Professional Integration. Following completion of the online application, the system will create three copies of the E-Work Permit forms, which must be printed, stamped, and signed by the foreign national and the authorized signatory of the sponsoring organization. Both signatures must be notarized or recognized by the corresponding Moroccan diplomatic post overseas.
Once completed, the foreigner must submit the original paperwork as well as the required documentation to the Moroccan Department of Employment for approval. Once this is completed, the foreigner is free to enter the nation and begin working.
In Morocco, it is legally obligatory to have a written employment contract in the local language that specifies out the conditions of the employee's remuneration, benefits, and termination requirements. In Morocco, an offer letter and employment contract should always include the salary and any compensation amounts in Moroccan dirams rather than foreign money.
In Morocco, there are three forms of employment contracts: fixed term, indefinite duration, and job completion. Definite-term contracts have an expiry date of 12 months (one year) and may only be renewed once, but indefinite-term contracts do not have an end date. If an employee continues to work for the company after the fixed-term contract expires, the fixed-term contract immediately becomes an indefinite-term contract.
For indefinite-term contracts, the probation period for managers cannot exceed three months, a month and a half for office staff, and 15 days for on-site laborers. The trial period for definite-term contracts of less than six months is one day every week, and it is 30 days for contracts of more than six months. The probation term may only be extended once.
The employer is needed to obtain and renew an employment card for the employee from the Labour office on a yearly basis. When employing more over 50 people, they must additionally set up an internal medical first aid center staffed by a doctor.
In Morocco, 26 days or 191 hours of labour is considered one complete month of employment.
Moroccan Dirham