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How to Hire and Pay Remote Employees in Morocco

Morocco is home to the world's largest desert, the Sahara, in northwest Africa.

Workpay
May 12, 2022
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May 12, 2022
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How to Hire and Pay Remote Employees in Morocco

Morocco is home to the world's largest desert, the Sahara, in northwest Africa. It's also famous as a tourist attraction because of its towering mountains, beaches, ancient cities, and Arabic culture. Surprisingly, 45% of Morocco's workforce is employed in the agricultural sector, yet only 19% of its land is suitable for farming.

This country of 31 million people also has excellent skills in other industries such as IT, engineering, finance, hospitality, logistics, textiles, shipping, automobiles, manufacturing, information and communication, marketing, media, and tourism. While employment laws in Morocco aren't too strict, you still need to hire employees compliantly.

Are you foreign employers ready to work with the fantastic Moroccans as remote employees? Are you experiencing a problem with expanding your remote team in Morocco? This guide takes you step-by-step on hiring and paying remote employees in Morocco.

How to Hire Remote Employees in Morocco 

Morocco is experiencing gradual growth, and the government has made it easy for business operations, even for foreign companies. However, hiring employees can be challenging because of all-encompassing compliance laws.

For instance, employment discrimination of any form is highly prohibited. Additionally, you must hire employees in Morocco under a written contract. However, you're free to decide how you onboard employees. That's what we're about to explore.

There are two ways you can hire or onboard remote employees in Morocco:

  • Set up a subsidiary in Morocco 

Setting up a subsidiary in Morocco is the first option an international employer should consider to expand their labour force in Morocco. It means establishing the physical entity of your more significant company in Morocco. This process should align with Morocco's local payroll, subsidiary, and employment laws. Consequently, you quickly onboard employees in Morocco. 

However, setting up a subsidiary in Morocco can be lengthy, complex, and expensive.

  • Use an EOR 

Using an EOR provider such as Workpay is an alternative for companies or international employers who don't want to set up a subsidiary or a branch office in Morocco. It simply means that you'll hire remote employees in Morocco through the EOR provider. An EOR provider will help you handle other human resources and payroll tasks.

Therefore, you'll not have to deal with complexities and laws regarding employment or payroll in Morocco. Generally, there is no risk of violating local employment laws. In addition, it allows you to focus on other business operations and processes, thus increasing your productivity. Most importantly, you save time and resources compared to setting up a subsidiary. 

How to Pay Remote Employees in Morocco

While onboarding remote employees as an international employer, you should consider the best way to pay them. Additionally, it's essential to understand Morocco's laws or regulations regarding payment and payroll. Paying employees in Morocco is different from paying employees in other countries: it varies in each country. 

It's worth noting that both employers (up to 21.09% of an employee's salary) and employees (6.74% of the wage) must contribute to social security in Morocco. Employers also have to contribute to corporate income tax. Check out Morocco's latest applicable income tax rates from Morocco Tax Authority

Best methods to pay remote employees in Morocco 

 1. Direct and inter-bank transfers 

You can pay remote employees in Morocco through bank transfers. You must complete physical or online forms and provide the recipients' bank account details.

Moroccan banks such as Banque Populaire, Chaabi International Bank, and Attijariwafa Bank allow Moroccans to receive international bank transfers quickly. Paying employees through this method is also pretty fast.

2. Online money transfers

 Various online payment providers enable you to send payments to remote employees in Morocco. It's super-fast, easy, and cheap (low fees) compared to interbank transfers. In addition, most providers allow you to pay from your debit and credit cards or your bank account.

Most importantly, you can transfer payment to your employee's bank account, mobile money, or cash pickup. 

Among the familiar online money transfer provider to send money in Morocco include: 

  • Wise 
  • World Remit 
  • Remitly 
  • Paytop
  • Xoom 
  • Xendpay 
  • XE 

3. In-person cash transfers 

In-person cash transfer is another way to pay your remote employees in Morocco. Usually, you've to visit a physical store. However, some providers offer their services through online platforms, including apps. For instance, Western Union and MoneyGram allow transfers online but complete the transfer at a preferred store. 

Other service providers that allow in-person transfers to Morocco are MoneyGlobe, Sigue Money Transfers, and Xpress Money. 

4. Outsource Payroll or Use EOR service provider 

If you don't have a subsidiary in Morocco and don't want to deal with the complexity of paying remote employees, you might work with a Moroccan payroll processing company. However, it's your responsibility to ensure you comply as an employer. 

The other alternative is to use an EOR service provider such as Workpay. As outlined earlier, an EOR handles all your HR and payroll processing functions on behalf of employers: EOR acts as the total admin employer. An EOR ensures you automatically remain compliant while paying your remote employees in Morocco.

Why Workpay is the best EOR partner for hiring and paying remote employees in Morocco

We are a diverse company that focuses on and understands the African labour force; therefore, we have access to the best talents and skills in Morocco and Africa. Most importantly, we ensure your remote employees in Morocco remain compliant with the local labour laws. 

Above all, at Workpay, we walk with you at every stage of onboarding new employees to your team. 

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Workpay is a HR and Payroll software company that offers time & attendance, payroll, human resource, leave, expenses and remote teams solutions to businesses across Africa.

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