Living in a city with a lot of tourism I have seen the effect that a large influx of cash can have. High unemployment rates among educated workers in Morocco and many other developing countries is a serious issue. In the agriculture sector, a specific minimum wage (SMAG) apply based on the basic daily salary paid to the employee, without taking into account any benefits in kind. Estimates based on microdata from the 1998 ⦠In Casablanca, Morocco economy, Other Engineer Career is on the top list of highest earners, earning an average gross salary of MAD 1,125,000. Keep in mind the average salary here is between 3000-4000 dirham a month, about $400-$500. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. The net taxable salary income is taxed at progressive rates of 0, 10, 20, 30, 34 and 38 percent. As a general rule, all types of remuneration and benefits received by an employee for services rendered would constitute taxable income. 9 - 2éme étage 5 - Boulevard Ghandi. This means that the average person in Morocco earns approximately 110 MAD for every worked hour. Are you an employer? An employer that wants to hire a foreign employee should obtain an authorization from the Ministry of Employment of Morocco. Unions enjoy a strong influence. Definition, obligations, and sanctions, An employer may not grant an employee remuneration below the minimum wage (, Sanctions in case of a breach of the minimum wage requirement. Morocco's Minimum Wage is the lowest amount a worker can be legally paid for his work. Moroccoâs standard and agricultural minimum wages are to increase July 1, 2019, by 5%, the government of Morocco said in a news release (Arabic). This was not always the case: during the 1980s real wages in the Moroccan manufacturing sector declined ⦠Many workers receive less than Morocco⦠Our privacy policy has been updated since the last time you logged in. Morocco's minimum wage, Salaire minimum interprofessionnel garanti, will be raised by 5% in July and another 5% in July 2015, bringing the average monthly minimum salary to Dh2,571, up from Dh2,338 at present. individuals, whether they are tax resident in Morocco or not, that realize profits or receive income where the right of taxation is attributed to Morocco by virtue of a double tax treaty. Casablanca. Employers domiciled or established in Morocco also have to file an annual declaration of wages before the end of February of each calendar year. For information, Morocco minimum wage in 2018 on an hourly basis was 13.46 MAD/ hour. Most countries have a nation-wide minimum wage that all workers must be paid. Non-residents will also be subject to income tax on any other Moroccan-sourced income. Thus, this paper analyzes the evolution of the determinants of employment and the status in employment and wages in this country after 1983 using a cohort approach. Apply to 0 Wages Jobs in Morocco : Wages Jobs in Morocco for freshers and Wages Vacancies in Morocco for experienced. The average salary in Morocco, IN ranges from approximately $18.00 per hour for Tanker Driver to $1,350 per week for Local Driver. Although the minimum wage (SMIG, Salaire minimum interprofessionnel garanti) is not enforced in the informal sector of the economy, it is well implemented throughout the industrialised and unionized sectors. (Tunis) â Morocco should take steps to ensure compliance with its new domestic workers law, which takes effect on October 2, 2018, Human Rights ⦠Top Morocco Salaries - By Employer . This and other pertinent issues are overwhelmingly decided through collective labor agreements. Both the employer and employee are subject to CNSS contributions on the employeesâ wages. In non-agricultural activities such as industry, trade and the liberal professions, the legal minimum wage corresponds to the basic hourly wage paid to the employee, plus any tips and wage accessories (allowances and benefits in kind). KPMG International entities provide no services to clients. One prominent manifestation of Moroccoâs rapidly increasing labour productivity is the declining share of employment in manufacturing, even as the sectorâs âvalue-addedâ grows. Moroccoâs labor market is characterized by three key challenges: Lack of inclusion: Youth and women are less integrated into the labor market. ⦠The standard VAT rate is 20 percent. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. Summary about cost of living in Morocco: Family of four estimated monthly costs are 1,563.46$ (14,057.82MAD) without rent. income from Moroccan sources and income from foreign sources), non-tax resident: with regard to their income from Moroccan sources. The minimum wages also are to rise July 1, 2020, the government said. This blog post will explore this subject to help entrepreneurs and company executives comply with current labour regulations and better understand its impact on their business. Where no exemption is applicable, employers are required to withhold employee social security contributions on a monthly basis and remit them, along with employer contributions, to CNSS. Morocco has entered into a number of double taxation treaties with other countries/jurisdictions to prevent double taxation and allow cooperation between Morocco and overseas tax authorities in enforcing their respective tax laws. You will not receive KPMG subscription messages until you agree to the new policy. Where no exemption is applicable, employers are required to withhold employee social security contributions on a monthly basis and remit them, along with employer contributions, to CNSS. This, together with capital deepening, would help explain the widespread perception of a skill shortage in Morocco and the comparatively high wages of skilled workers. Through primary research on wages and working conditions in Saiss, Morocco, this paper contributes to the literature on gendered inequity in wages and working conditions in the Browse articles, set up your interests, or Learn more. However, foreign nationalsâ resident in Morocco are entitled to transfer cash saved from their Moroccan wages. Manager and Director follow, earning MAD 914,400 and MAD 726,666, respectively. The gap between the lowest and the highest paid careers is 1756.15%. WAGES AND LABOUR MARKET In Morocco, the labour legislation underpins the level of wages. CNSS applies to payments of wages by employers. Get the latest KPMG thought leadership directly to your individual personalized dashboard. Morocco ranked #11 for labor force, total amongst Muslim countries in 2012. Hire and retain the best talent with accurate and reliable data Benchmark Your Teams . The monthly cost of the minimum wage for the equivalent of 191 working hours (full time job) is 3,268.01 dirhams. This page displays a table with actual values, consensus figures, forecasts, statistics and historical data charts for - Wages in Manufacturing. Sujet de la page: "MPRA Morocco minimum wage employment and poverty". For more detail about our structure please visit https://home.kpmg/governance. The average hourly wage (pay per hour) in Morocco is 110 MAD. Some contributions are capped while others are not. The country upholds a minimum wage of $1.48/hour (£1,20, â¬1,38) as of 2016. Find out how KPMG's expertise can help you and your company. Taxpayers with employment income paid by a non-resident employer, for which the right to tax is conferred on Morocco, must file annual income tax returns. Downloadable! Sector. The ACS publishes estimates on median earnings in Morocco each yearâthat is, income earned as wages, salaries, tips, and bonuses from work (or receipts minus expenses for self-employment). Employers employing Moroccan individuals subject to Moroccan social security have to register with Moroccan social security, Caisse National de Sécurité Sociale (CNSS), and comply with associated registration of employees to CNSS and withholding of contributions and filing requirements. Salary information comes from 199 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months. This authorization is granted under the form of approval by the Ministry on the work contract for foreigners (Contrat de travail dâétranger). Income tax in Morocco is assessed on an annual and individual basis. Usually jobs are classified into two categories: salaried jobs and hourly jobs. KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (âKPMG Internationalâ), each of which is a separate legal entity. Or are you a Rabat based company that is considering outsourcing its accounting and payroll? Coronavirus: government measures to help businesses and employees. Employers may e⦠A transfer pricing implication could arise to the extent that the employee is being paid by an entity in one jurisdiction but performing services for the benefit of the entity in another jurisdiction, in other words, a cross-border benefit is being provided. The agreement also provides for an increase in family allowances of MAD 100 for each child up to three children starting from July 1, 2019. © 2021 Copyright owned by one or more of the KPMG International entities. But, how much does living in Morocco really cost? Valid on march 2021; The amounts are in Moroccan Dirham. Morocco has value-added tax (VAT). Please take a moment to review these changes. Though Morocco has made significant advancements in womenâs rights since King Mohammed VIâs ascension to the throne in 1999, it still ranks 137 out of 149 countries according to the 2018 World Economic Forumâs Global Gender Gap Report and ranks 141 out of 149 countries in womenâs economic participation and opportunity. for wage documentation as the existing evidence is largely qualitative in nature (Deere 2005; Maertens and Swinnen 2012). Youth participation has declined as the share of youth staying in school has more than doubled. Cost of living in Morocco is, on average, 49.05% lower than in United States. Employment News â¢â¢â¢ Topics ⢠Countries ⢠U.S. States. I disagree with the notion that you should tip as much as your able. The worsening unemployment problem among educated workers in Morocco started with the cuts to public sector hiring under structural adjustment policies implemented in 1983. KPMG International provides no client services. Income tax liability is determined by applying progressive tax rates to the net taxable income of the individual. How ⦠As businesses become global, few organizations seem to understand the risks that business travel may bring. The amount deducted may not, however, exceed the amount deducted by the local personnel of the company for which they are working. The worsening unemployment problem among educated workers in Morocco started with the cuts to public sector hiring under structural adjustment policies implemented in 1983. The penalty is appropriate as many times as there are employees involved in this breach. The annual income tax return must be filed electronically and the corresponding income tax due paid before 1 March following the close of the tax year. Tax on employment income must be withheld by employers domiciled or established in Morocco. How to start a Limited Liability Company (LLC) in Morocco? What is the minimum wage in Morocco? WeCount is an Acteo service VAT is levied on industrial, commercial, hand-made or professional transactions carried out in Morocco, as well as on import transactions. Extended business travelers may be subject to Moroccan tax on their salary earned for work provided in Morocco. Hourly minimum wage rate in Morocco . For civil servants, the entire wage increase will be effective as of July 2014. GDP Growth Rate in Morocco averaged 1.77 percent from 1999 until 2019, reaching an all time high of 9.30 percent in the second quarter of 2006 and a record low of -3.80 percent in the first quarter of 2016. Ghandi Mall Imm. Morocco Wages & Salaries News Monitoring Service & Press Release Distribution - International Employment Today - EIN Presswire. For instance, penalties are set by Labor Code law for employers who fail to recognize and pay overtime compensation, which is currently 100 percent of an employee wage on paid holidays, between 50 percent and 100 percent on a rest day, and 25 percent above the wage for any extra hours worked between 6 am and 9 pm. CNSS contributions are withheld and paid by the employer on a monthly basis. 1. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. Moroccoâs 2011 constitutional reforms included several ⦠The Moroccan tax code does not make any distinction between Moroccan and foreign employees in relation to the taxation of employment income. Acteo is an accounting firm registered within Moroccan Chartered Accountants's Board and whose vocation is to support its clients in their bid for success. Créé par: Carole Fontaine. It is composed of the following elements: An employee paid at the minimum wage who works a full month (equivalent to 191 hours of work during the month) and who has only basic social security coverage (CNSS), will have a payslip as follows: Highly prized because of its flexibility and simplicity, the Limited Liability Company, commonly known as an LLC or SARL in french, is an almost obvious choice for foreign investors wishing to set up a company in Morocco ... Are you considering setting up a business in Rabat? Home â¢â¢â¢ Newswires by Industry ⢠Countries ⢠U.S. States ⢠World Media Directory. The first increase of 5% will be effective as of July 1, 2019, whereas a second increase of the same percentage will be applicable as of July 1, 2020. The tax year in Morocco for individuals is the calendar year. While the overall average wage increased since 2017 by 1.7%, consumer prices have also increased. By way of definition, the Guaranteed Interprofessional Minimum Wage (SMIG) corresponds to the lowest minimum hourly wage set by a regulation requiring employers not to pay salaries whose hourly rate is lower than the legal minimum wage. However, the total fines cannot exceed a sum of 20,000 dirhams. Female labor force participation is particularly low (23%). In this case, contributors may deduct contributions paid by them from their gross income. An individual is considered a Moroccan resident for tax purposes if: Personal income tax applies to individuals as follows: There is no minimum threshold/number of days worked in Morocco before taxation may be applied. However, the provisions of an international tax treaty may provide for an exemption from tax in Morocco on salary income, provided the employee respects the threshold number of days spent outside of Morocco during the relevant period as required by the particular treaty. Since the adoption of a new finance law in January 2014, the needs of women and girls are increasingly being reflected in how governments spend and the gender priorities are integrated throughout the budgeting process. Morocco's minimum wage is 3 000 MADs ($310) per month in public sector,2 570.86 MAD ($265) per month in private sector,69,73 MAD ($7) per day for agricultural workers. Save what resonates, curate a library of information, and share content with your network of contacts. A comparison of minimum wage life styles in Morocco and the United Kingdom. they have their center of economic interests in Morocco. Accounting firm in Rabat: How to make the right choice? This would also be dependent on the nature and complexity of the services performed. Depending on where in the country you decide to live, the costs associated will vary. they are present in Morocco for at least 183 days during any period of 365 days. A single person estimated monthly costs are 441.40$ (3,968.80MAD) without rent. A fine of 300 to 500 dirhams is applicable in the event of payment of a salary below the minimum wage. Morocco's minimum wage was last changed in 1-Jul-2015. The determination of net taxable income depends on the residency status of the person and is generally achieved by taking gross taxable income less certain allowable deductions (including mandatory social security contributions). Per month: Per Hour: Public Sector Minimum wage with effect from July 1, 2019 Minimum Wages - last checked - 11/8/19. Relieve yourself of your accounting and tax burden. Morocco has signed social security agreements with other countries/jurisdictions, mainly: France, Belgium, the Netherlands, Spain, Sweden, Germany, Denmark, Tunisia, Canada and Portugal. This isnât really a straight forward tip but meant to give visitors a sense of what the average cost of goods (and wages) in Morocco are. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à -vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Activity: Effective date: Rate: Agricultural: July 1, 2012: 63.39 per day: Non-agricultural: July 1, 2019: 14,133 dirhams per hour . Langue: français. Click anywhere on the bar, to resend verification email. Morocco has a long history of gender responsive budgeting work with sustained, high-level political will to address gender equality. All rights reserved. Financial Analyst earn a gross annual average of MAD 26,722, while Web Developer earn MAD 38,574. The tax payment to the Treasury must be done before the end of the following month. Many Moroccan workers are not declared to the CNSS. Minimum Wage â Morocco. General tax provisions would apply for the taxation of employment income earned by foreign employees in Morocco. Rabat â The Moroccan government, three trade unions and the General Confederation of Enterprises of Morocco ( CGEM) have signed an agreement to increase wages and social benefits in Morocco⦠Factoid #177 60% of Swedes work more than 40 hours per week , but just across the border in Norway , ⦠The Minimum salary in Morocco (SMIG) was introduced in Morocco in the early 1980s as a means of protecting employees, increasing their purchasing power and guaranteeing a minimum income for Moroccan workers. The gap between the lowest and the highest paid careers is 3967.23%. All information contained in this publication is summarized by KPMG SA, the Moroccan member firm affiliated with KPMG International Cooperative (âKPMG Internationalâ), a Swiss entity, based on the Moroccan Income Tax Code of 31 December, 2006 and subsequent amendments; the Circular 717 of April 2011; the Web site of the Moroccan fiscal administrations; the Moroccan Social Security Law of 27 July, 1972; the Web site of the Moroccan Social Security administration; the Foreign Exchange Instruction of 31 January 2020; the Moroccan Labor Code of 11 September, 2003. Director and Manager follow, earning MAD 738,000 and MAD 719,571, respectively. The lowest paid Morocco are Engineering professionals at $30,000. tax resident: with regard to their worldwide income (i.e. Liberalisation of the banking sector (abolishing credit control in 1991, liberalising interest rates on overdrafts in 1992 and on accounts in credit in 1996) and an expansionist monetary policy (reducing intervention rates of the central bank on the money MOROCCO 10/01/02 15:13 Page 208 This page provides values for Wages in Manufacturing reported in several countries part of Africa. Technician earn a gross annual average of MAD 41,201, while Web Developer earn MAD 76,687. As part of the kingdom efforts to promote social justice, the minimum wage has increased no less than twenty-two times since its inception. The rate of employee contributions can be as much as 6.74 percent, and 21.09 percent for employers. As a general principle, the provisions of double tax treaties will override domestic rules. Cost of the minimum wage for the company . In a group I belong to online there was a recent discussion on monthly budgets. You will not continue to receive KPMG subscriptions until you accept the changes. Following the signature in April 2019 of an agreement between the General Confederation of Moroccan Enterprises (CGEM) and three trade unions, it was decided to increase the Minimum Wage (SMIG) by 10% over two years. For information, Morocco minimum wage in 2018 on an hourly basis was 13.46 MAD/ hour. Unions have a strong influence and the presence of an official minimum wage (SMIG: salaire minimum interprofessionnel garanti) has been a crucial element of wage determination in the recent period. Since the last time you logged in our privacy statement has been updated. Each month, the Moroccan employer has to withhold, and pay to the Treasury, income tax on every payment made to their employees. Non-deductible costs for assignees include contributions to non-mandatory social security regimes and to foreign pension plans, unless the contribution is made exclusively to foreign pension funds. Employers domiciled or established in Morocco also have to file an annual declaration of wages before the end of February of each calendar year. It applies to both public sector and private sector workers. In Morocco economy, Other Engineer Career is on the top list of highest earners, earning an average gross salary of MAD 810,000. We want to make sure you're kept up to date. An employer may not grant an employee remuneration below the minimum wage (article 356 of the Labour Code), even if the latter expressly accepts it (section 360 of the Labour Code). raises the cost of public-sector wages. Member firms of the KPMG network of independent firms are affiliated with KPMG International. Casablanca, Morocco - Salary - Get a free salary comparison based on job title, skills, experience and education. Wage formation In Morocco, the labour legislation underpins the level of wages. Confronted with the unprecedented crisis caused by the emergence of Coronavirus in Morocco, the Moroccan government did not remain idle. The Gross Domestic Product (GDP) in Morocco expanded 1.10 percent in the third quarter of 2019 over the previous quarter. Exchange controls are in place over Moroccan currency. In the event of a repeat offense, the penalty is twice the initial fine. All you have to do is send us your documents via our online platform. Rent in Morocco is, on average, 77.06% lower than in United States. Hourly Wage = Annual Salary ÷ ( 52 x 5 x 8 ) The hourly wage is the salary paid in one worked hour.