Moroccan Labor Law: Guide and Regulations

Published on October 4, 2025 and written by Cyril Jarnias

Morocco, a country undergoing significant economic and social transformation, has seen substantial evolution in its labor law in recent years. Between the drive for modernization and the need to protect workers, the Cherifian Kingdom is attempting to strike a delicate balance. Let’s delve into the intricacies of Moroccan labor law, its advancements, and its challenges.

The Employment Contract: Cornerstone of the Employer-Employee Relationship

In Morocco, the employment contract is the cornerstone of the relationship between employer and employee. It defines the rights and obligations of each party while providing a protective legal framework for both sides.

The Permanent Contract, the Theoretical Standard

Theoretically, the Permanent Contract is the standard in Morocco. It provides job stability and security for employees. However, in practice, many companies resort to other forms of contracts, particularly Fixed-Term Contracts, for greater flexibility.

The Fixed-Term Contract, an Economic Reality

Fixed-Term Contracts are widely used in Morocco, particularly in seasonal sectors like tourism or agriculture. Moroccan law strictly regulates their use, limiting their duration to one year, renewable once. Beyond that, the contract is automatically converted to a Permanent Contract.

The Probation Period, an Adaptation Time

The probation period is a common practice in Morocco. It allows both employer and employee to ensure their compatibility. Its duration varies by employee status: 15 days for workers, 1.5 months for employees, and 3 months for managers, renewable once.

Social Obligations: A System Seeking Efficiency

Morocco’s social protection system has seen significant advancements in recent years, but challenges remain in ensuring comprehensive coverage for all workers.

The CNSS, Pillar of Social Protection

The National Social Security Fund (CNSS) is the agency responsible for managing the social security system for private sector employees in Morocco. It covers risks related to illness, maternity, disability, old age, and death. Contributions are shared between employer and employee.

AMO, Toward Universal Health Coverage

Compulsory Health Insurance (AMO) was introduced in 2005 to improve access to healthcare. It covers medical, surgical, and pharmaceutical expenses. However, extending it to the entire population remains a major challenge for Moroccan authorities.

Annual Leave, a Fundamental Right

Every employee in Morocco is entitled to paid annual leave. The minimum duration is 1.5 working days per month of actual work, or 18 working days per year. This duration increases with the employee’s seniority in the company.

SMIG: An Evolving Minimum Wage

The Guaranteed Interprofessional Minimum Wage (SMIG) in Morocco is a constant subject of debate among social partners. It represents the legal minimum that an employer must pay their employee.

A Gradually Increasing SMIG

The SMIG in Morocco has seen several increases in recent years. In 2023, it stands at 2,970 dirhams per month in the private sector, approximately 275 euros. In the agricultural sector, the Guaranteed Agricultural Minimum Wage (SMAG) is set at 2,141 dirhams per month.

Sectoral Disparities

Despite the existence of SMIG, significant wage disparities persist between different sectors in Morocco. Finance, information technology, and telecommunications sectors generally offer salaries well above the legal minimum.

The Enforcement Challenge

One of the main challenges remains the effective enforcement of SMIG, particularly in the informal sector which represents a significant portion of the Moroccan economy. Authorities are increasing inspections to ensure compliance with this legal obligation.

Compensation in Morocco: A Contrasted Landscape

The Moroccan labor market shows great diversity in terms of compensation, reflecting the country’s economic and social disparities.

A Rising Average Salary

According to the latest available data, the average salary in Morocco is approximately 4,000 dirhams per month (about 370 euros). However, this figure masks significant disparities between sectors and regions.

The Highest-Paying Sectors

• Finance and insurance
• Information technology
• Pharmaceutical industry
• Aeronautics
• Automotive

Geographical Disparities

Major cities like Casablanca, Rabat, or Tangier generally offer higher salaries than rural areas or small towns. This disparity is explained by the concentration of high-value-added economic activities in these metropolitan areas.

In-Demand Skills: An Evolving Labor Market

The Moroccan labor market is evolving rapidly, in line with the country’s economic transformations. Certain skills are particularly sought after and offer better salary prospects.

Digital, a Leading Sector

Digital professions are particularly in demand in Morocco. Developers, data scientists, cybersecurity experts, or artificial intelligence specialists benefit from attractive salaries and numerous career opportunities.

Engineering, Still in Demand

Engineers, particularly in automotive, aeronautics, or renewable energy sectors, remain highly sought after in the Moroccan labor market. Their technical skills are valued and well-compensated.

Soft Skills, a Major Asset

Beyond technical skills, Moroccan employers increasingly value soft skills. Proficiency in languages (Arabic, French, English), communication abilities, and adaptability are major assets for professional advancement.

Unions and Workers’ Rights: Building Social Dialogue

The Moroccan union landscape is evolving rapidly, with growing awareness of the importance of social dialogue for the country’s economic and social development.

Union Pluralism

Morocco has several representative union federations, including the Moroccan Labor Union (UMT), the Democratic Confederation of Labor (CDT), and the General Union of Moroccan Workers (UGTM). This diversity reflects the plurality of opinions and demands among Moroccan workers.

The Right to Strike, a Regulated Achievement

The right to strike is recognized by the Moroccan Constitution. However, its exercise is regulated by Law 97.15, adopted in 2023 after lengthy negotiations. This law aims to organize the exercise of the right to strike while preserving the continuity of essential services.

Toward Strengthened Social Dialogue

Moroccan authorities have established social dialogue mechanisms, particularly through regular tripartite meetings between the government, unions, and employers. These negotiations have led to several important agreements in recent years, particularly regarding SMIG increases or improvements in social protection.

Moroccan labor law is constantly evolving, reflecting the country’s economic and social transformations. While significant progress has been made in recent years, particularly in social protection and social dialogue, challenges persist. Effective enforcement of laws, reducing wage inequalities, and extending social protection to all workers remain major challenges for the years ahead.