Morocco

Understanding market competitive salaries in Morocco is crucial for both employers and employees. Offering competitive compensation attracts and retains top talent, while employees can ensure they're being fairly valued. However, determining a competitive salary involves various factors beyond a single national average.

Key Determinants of Market Competitive Salaries

Several key factors influence what constitutes a competitive salary in Morocco:

• Job Title and Industry: Different professions have varying salary ranges. For instance, a Market Analyst in Morocco can expect a yearly salary of MAD 242,146, while a Pharmacist earns an average of MAD 223,478.
• Experience and Education: Employees with more experience and higher educational qualifications typically command higher salaries.
• Location: Cost of living varies across Moroccan cities. Salaries may be higher in Casablanca or Marrakech compared to smaller towns.
• Company Size and Reputation: Multinational corporations or well-established local businesses often offer more competitive salaries than smaller companies.

Researching Market Competitive Salaries

There are several ways to research market competitive salaries in Morocco:

• Salary Surveys: Reputable organizations conduct periodic salary surveys that provide valuable data on average salaries for various positions across industries and locations.
• Job Boards: Many online job boards in Morocco list salaries alongside job postings. While not an absolute benchmark, this information offers a general idea of salary ranges for specific positions.
• Recruitment Agencies: Recruitment agencies specialize in placing candidates in suitable positions and possess valuable knowledge of current salary trends within their areas of expertise.

Morocco, like many countries, has established minimum wage regulations to ensure a basic level of income for workers. Understanding these regulations is essential for both employers and employees. The minimum wage in Morocco is set by a decree issued by the Head of Government. This decree outlines the legal minimum wage for various sectors within the Moroccan economy.

Authority Setting Minimum Wage

The Head of Government in Morocco issues a decree that sets the minimum wage. This decree provides the legal minimum wage for different sectors in the Moroccan economy.

Variations in Minimum Wage

Morocco implements a differentiated system based on the employment sector, despite having a single national minimum wage:

• Public Sector: The minimum wage for public sector employees is typically the highest.
• Private Sector (Industry, Commerce & Liberal Professions): This sector has a separate minimum wage, revised most recently in September 2023.
• Agricultural Sector: Recognizing the specificities of agricultural work, the minimum wage for this sector is set lower than other sectors.

Legislative Reference

The decree of the Head of Government determining the minimum wage is referred to as the Dahir fixant le salaire minimum interprofessionnel garanti. The specific reference number will vary depending on the year of the decree.

Staying Updated

It's crucial to stay updated on the latest minimum wage revisions, as the government periodically adjusts these figures. Reliable sources for this information include the Ministry of Employment and Professional Integration website or official government publications.

Beyond their base salary, employees in Morocco may receive various bonuses and allowances to enhance their compensation package. Here's a breakdown of some common offerings:

Mandatory Bonuses

Morocco doesn't mandate a 13th-month bonus, but a legal requirement exists for seniority bonuses. These bonuses increase progressively with an employee's tenure:

• 5% of salary after two years of service
• 10% after five years
• 15% after 12 years
• 20% after 20 years

Discretionary Bonuses

Many companies offer additional discretionary bonuses based on factors like performance, company profits, or achieving specific goals.

Allowances

Several allowances can be offered by Moroccan employers to support employee well-being and offset work-related expenses:

• Transportation Allowances: This helps employees cover commuting costs, especially in larger cities.
• Meal Allowances: Companies might provide meal allowances to help cover lunch expenses.
• Housing Allowances: In some cases, companies might offer housing allowances to assist with rent or mortgage costs.
• Family Allowances: Some employers may provide allowances for employees with dependents.
• Mobile Phone Allowances: Companies may offer allowances to cover employees' mobile phone bills used for work purposes.

The specific types and amounts of allowances offered can vary depending on the company, industry, and employee position. It's recommended to consult with a recruitment agency or refer to the company's benefits policy for details.

Additional Considerations

• Profit Sharing: Some companies might implement profit-sharing schemes, where employees receive a portion of the company's profits based on performance.
• Benefits: Employers may offer additional benefits packages encompassing health insurance, gym memberships, or childcare support, further enhancing employee compensation.

In Morocco, a well-defined payroll cycle is crucial for businesses to ensure employees receive their salaries on time and in accordance with legal regulations.

Frequency of Payment

Morocco has a mandatory minimum requirement for payment frequency based on employment type:

• Hourly Workers: Hourly employees must be paid at least twice a month.
• Salaried Employees: Salaries for salaried employees are typically paid monthly, often on the last working day of the month.

While the law dictates the minimum frequency, some companies might choose a more frequent payroll cycle (e.g., bi-weekly) to enhance employee satisfaction.

Payroll Processing Steps

A typical payroll cycle in Morocco involves several key steps:

• Timesheet Collection: Employers collect timesheets or track employee hours worked.
• Salary Calculation: Based on agreed-upon pay rates, overtime hours (if applicable), and deductions (taxes, social security), gross and net salaries are calculated.
• Payroll Taxes & Social Security Contributions: Employers withhold mandatory contributions towards taxes and social security from employee salaries. These contributions are then remitted to the relevant government authorities.
• Salary Payment: Salaries are finally paid to employees via bank transfer, cash, or checks, following the chosen method.

Labor Law No. 1.16-122 (Code du travail du Maroc) outlines legal requirements related to payroll processing and employee compensation.

Additional Considerations

Here are some additional points to consider regarding payroll cycles in Morocco:

• Bonuses and 13th Month Pay: While not mandatory, some companies offer bonuses or a thirteenth month of pay as additional compensation, typically distributed annually.
• Payslips: Employers are required to provide employees with payslips detailing their gross salary, deductions, and net pay received.