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ELIMANI AVOCATS

Severance pay calculator (Morocco)

Estimate everything owed at the end of the contract under the Moroccan Labour Code: severance pay, notice, untaken paid leave, damages and unpaid wages.

Contract

Used to turn the monthly salary into an hourly wage: 191 h for a 44-hour week, 208 h in agriculture (art. 238). Adjust for part-time work.

Pay

Gross monthly amounts, averaged over the 52 weeks before the contract ended (art. 55).

Leave empty to apply the article 350 minimum: 5% after 2 years, 10% after 5, 15% after 12, 20% after 20, 25% after 25, on the salary, its extras and overtime, excluding tips (art. 353). Enter 0 if your salary is already set by seniority.

Performance or production bonuses, function allowances (team or group supervisor). Do not include expense reimbursements, or responsibility, hardship, danger, dangerous-zone or temporary-replacement allowances (art. 57).

Average amount per month, premiums included (25% or 50% by day or night, 50% or 100% on the weekly rest day, art. 201).

End of the contract

Part of a year

Articles 41 and 53 refer to "each year or part of a year". Both readings exist: pro rata is the most common, a full year is the literal reading.

Paid leave and unpaid wages

By default, 1 January of the year the contract ends, or the start date if later. Any started month counts as a full month (art. 251) and notice not worked is added (art. 239).

Estimate

Estimate everything owed at the end of the contract under the Moroccan Labour Code: severance pay, notice, untaken paid leave, damages and unpaid wages.

Estimate based on the Labour Code (Law 65-99), order 344-05 and the decrees setting the minimum wages. It does not take into account a more favourable collective agreement, contract or internal rules, nor income tax and contributions. The article 59 payments are not due to an employee retired with a pension (art. 60). For an analysis of your case, consult a lawyer.

How the calculation works

Reference pay: average of the 52 weeks before the contract ended (art. 55), including work-related bonuses, overtime, benefits in kind, commissions and tips (art. 57). The seniority bonus is due at the article 350 minimum unless pay is already set by seniority. The hourly wage cannot be below the minimum wage, or the agricultural minimum wage in agriculture (art. 56): MAD 17.92 per hour since 1 January 2026 and MAD 97.44 per day since 1 April 2026.

Severance pay: due to an employee on a permanent contract dismissed after 6 months of work in the same company (art. 52), except for gross misconduct (art. 61). For each year or part of a year: 96 hours of salary for years 1 to 5, 144 hours for years 6 to 10, 192 hours for years 11 to 15, 240 hours beyond (art. 53), doubled for a staff delegate or union representative dismissed during the mandate (art. 58).

Notice: if it is not respected, the employer owes the salary for the period (art. 51). Minimums under decree 2-04-469: managers 1 month under 1 year of service, 2 months from 1 to 5 years, 3 months beyond; employees and workers 8 days, 1 month, then 2 months. An 8-day notice is paid pro rata of calendar days (annual pay × 8 / 365).

Paid leave: 1.5 days per month of service, 2 days under 18 (art. 231), plus 1.5 days per whole period of 5 years of service, up to 30 days a year (art. 232). When the contract ends, untaken days of the current year and the two previous years are paid, whatever the reason (art. 251 and 254). For monthly-paid staff, order 344-05 sets no specific rule: a day is 1/26 of the monthly salary, since a month of work equals 26 days of actual work (art. 238) and the payment must equal the pay the employee would have received, extras included (art. 249 and 250).

Unfair dismissal: the court may order reinstatement or award damages of one and a half months of salary per year or part of a year, capped at 36 months (art. 41), on top of severance pay and notice (art. 59). Proceedings must be brought within 90 days of receiving the dismissal decision (art. 65).

Read the full guide on dismissal

Frequently asked questions

How is severance pay calculated in Morocco?

Multiply the average hourly rate (monthly salary / 191) by a number of hours that depends on seniority: 96 hours per year up to 5 years, 144 hours from 6 to 10 years, 192 hours from 11 to 15 years and 240 hours beyond. The calculator on this site gives a quick estimate.

What is the deadline to challenge an unfair dismissal?

The claim must be filed with the court within 90 days of receiving the dismissal decision. After that, it is time-barred.

Is an employee dismissed for serious misconduct entitled to compensation?

No, if the serious misconduct is proven and the employer followed the procedure (hearing the employee, written notification of the decision). Otherwise the dismissal may be held unfair and give rise to all the compensation.

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