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How Is Severance Pay Calculated in Morocco?

Last updated 7/5/20260 viewsProvisional

You are entitled to it after 6 months in the company; the amount ranges from 96 to 240 hours of pay per year of seniority, calculated on the average of wages over the last 52 weeks.

A minimum of six months' seniority is required.

If you are on an open-ended contract, you are entitled to severance pay after six months of work in the same company, regardless of how you are paid (art. 52).

The amount, per year or fraction of a year of actual work, is equal to (art. 53):

  • 96 hours of pay for the first 5 years of seniority;
  • 144 hours of pay from the 6th to the 10th year;
  • 192 hours of pay from the 11th to the 15th year;
  • 240 hours of pay beyond 15 years.

The calculation is based on the average of the wages over the 52 weeks preceding the termination of the contract (art. 55), and the wage used cannot be lower than the legal minimum wage (art. 56). The calculation includes the wage and its accessories: bonuses and allowances linked to work, benefits in kind, commissions, and tips (art. 57).

More favorable provisions may be set out in your contract, the collective agreement, or the internal regulations (art. 53). And if you are a staff delegate or union representative dismissed during your mandate, the severance pay is increased by 100% (art. 58).

This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer admitted to the Bar in Morocco.

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How Is Severance Pay Calculated in Morocco? | moroccolaw.ai