🇲🇦 Morocco Severance Pay Calculator
Enter your average monthly wage over the last 52 weeks and your dates. We apply Articles 41, 52 and 53 of the Labour Code (Law 65-99) and the minimum notice set by Decree 2-04-469.
Quick answer: Moroccan severance pay is 96 hours of wage per year for years 1–5, 144 hours for years 6–10, 192 hours for years 11–15 and 240 hours beyond, with the hourly wage = monthly wage ÷ 191. For example, MAD 8,000 a month for 10 years gives 1,200 hours, or MAD 50,261.78.
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Morocco Severance Pay Calculator inputs
Result
Total due on dismissal
MAD 56,563.09
10.78 years of service
| Severance pay (1,350.44 hours) | MAD 56,563.09 |
| Notice pay (60 days) | MAD 0.00 |
| Total | MAD 56,563.09 |
- Hourly wage (÷ 191)
- MAD 41.88
- Service
- 3,936 days
- Minimum notice
- 60 days
Severance by band of service
| Band | Years | Hours | Amount |
|---|---|---|---|
| Years 1–5 (96 h/year) | 5 | 480 | MAD 20,104.71 |
| Years 6–10 (144 h/year) | 5 | 720 | MAD 30,157.07 |
| Years 11–15 (192 h/year) | 0.78 | 150.44 | MAD 6,301.31 |
How Moroccan severance pay works
The Labour Code (Law No. 65-99) gives dismissed workers on open-ended contracts an indemnité de licenciement – severance pay counted in hours of wage for every year of service. The rate rises with seniority, and each band is paid at its own rate.
Hourly wage = Average monthly wage ÷ 191 · Severance = Hourly wage × hours for each band
| Years of service | Hours of wage per year (Art. 53) |
|---|---|
| Years 1 to 5 | 96 |
| Years 6 to 10 | 144 |
| Years 11 to 15 | 192 |
| Beyond 15 years | 240 |
Worked example
A worker earning an average MAD 8,000 a month is dismissed after 10 years:
- Hourly wage: 8,000 ÷ 191 = MAD 41.88
- Years 1–5: 5 × 96 = 480 hours · Years 6–10: 5 × 144 = 720 hours
- Severance: 1,200 hours = MAD 50,261.78
- If the court rules the dismissal abusive: 1.5 × 8,000 × 10 = MAD 120,000 in damages on top
Other payments on dismissal
- Notice pay (Art. 43, 51): wage for the minimum notice if it was not given.
- Damages for abusive dismissal (Art. 41): 1.5 months’ wage per year, at most 36 months – decided by the court or agreed in a signed settlement before the labour inspector.
- Job-loss allowance (IPE): insured workers who lose their job involuntarily may claim the CNSS job-loss allowance separately.
- Unused paid leave is also paid out.
We count partial years pro rata. Article 53 refers to “each year or part of a year”, and some courts round a part year up – check your settlement.
Sources
Estimates for educational purposes. Collective agreements and contracts may be more generous. Confirm with the labour inspectorate or a lawyer.
Frequently asked questions
Who is entitled to severance pay in Morocco?
A worker on an open-ended contract who is dismissed after at least six months with the same employer, unless the dismissal is for gross misconduct (Labour Code Art. 52). Resigning workers and fixed-term contracts that simply expire do not give rise to it.
How is the hourly wage worked out?
Severance is set in hours, so the monthly wage is divided by 191 – the legal 44-hour week over a month. The wage is the average of the last 52 weeks and includes bonuses and benefits that form part of pay (Art. 54–55).
How much is the compensation for abusive dismissal?
If a court finds the dismissal abusive, Article 41 awards damages of one and a half months’ wage for each year or part of a year of service, capped at 36 months. This comes on top of severance pay and notice pay.
What is the notice period in Morocco?
Decree 2-04-469 sets the minimum: for managers 1 month under a year of service, 2 months from 1 to 5 years and 3 months after 5; for employees and workers 8 days, 1 month and 2 months. A party who does not respect it owes the wage for the notice period (Art. 51).
Is severance pay taxed in Morocco?
Statutory severance pay within the legal limits is exempt from income tax, while amounts above them can be taxable. Ask your employer or the tax administration (DGI) how your settlement will be treated.
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