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Severance pay calculator Morocco Severance indemnity and final settlement, under the Labour Code
Enter the dates and the salary: this severance pay calculator for Morocco works bracket by bracket, under the Labour Code, then adds unused leave and notice for an indicative final settlement in Morocco.
- The article 53 scale: 96, 144, 192, then 240 hours of wage per year
- Unused leave and legal notice for the final settlement
- Nothing is sent: the calculation runs on your device
What the law says
The severance pay scale in Morocco
The indemnity is counted in hours of wage, for each year of actual work. The longer the seniority, the more each year is worth: from 96 hours at the start to 240 hours after 15 years (article 53 of the Labour Code).
| Seniority | Hours of wage per year | About | Legal text |
|---|---|---|---|
| Years 1 to 5 | 96 h | 0.50 of a month's salary per year | Labour Code, art. 53 |
| Years 6 to 10 | 144 h | 0.75 of a month's salary per year | Labour Code, art. 53 |
| Years 11 to 15 | 192 h | 1.01 of a month's salary per year | Labour Code, art. 53 |
| Beyond 15 years | 240 h | 1.26 of a month's salary per year | Labour Code, art. 53 |
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Who is entitled
An employee on a permanent contract (CDI) dismissed after six months of work in the same company, however they are paid (article 52). Paid leave, maternity, work accidents and illness count as actual work (article 54).
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Gross misconduct: no indemnity
An employee dismissed for gross misconduct leaves with no notice, no indemnity and no damages (article 61). Article 39 lists such faults: theft, breach of trust, unjustified absence of more than four days or eight half-days over twelve months, violence, deliberate refusal to work…
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The reference salary
The average of the 52 weeks before the contract ends (article 55), including work-related bonuses, benefits in kind, commissions and tips, excluding reimbursed expenses (article 57). Never less than the legal minimum wage (article 56).
Official sources: Labour Code (Law No. 65-99), consolidated French version, articles 39 to 61, 184, 231, 232, 238, 251 and 252 (Ministry of Justice) · Labour Code, consolidated Arabic version as of 16 July 2026 (Ministry of Justice) · Decree No. 2-04-469 of 29 December 2004 on the notice period, Official Bulletin No. 5280, page 23 · General Tax Code 2026, article 57-7° (Directorate General of Taxes)
The method
How severance pay is calculated
Three steps, which the calculator shows line by line: you can redo each one by hand.
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1. The hourly wage
monthly salary ÷ 191A month counts 191 hours outside agriculture and 208 hours in agriculture (article 238). Example: 8,000 ÷ 191 = 41.88.
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2. The hours per bracket
years × hours of the bracketFor 7 years and 6 months: 5 × 96 = 480 hours, then 2.5 × 144 = 360 hours, 840 hours in all.
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3. The indemnity
hours × hourly wageEach bracket is rounded to the centime, then the brackets are added up: 20,104.71 + 15,078.53 = 35,183.24.
And a year that has only started?
Article 53 counts « each year or part of a year ». The calculator takes the last year pro rata to the complete months: 6 months make half a year. Days beyond a complete month are not counted.
Income tax
Severance pay is exempt from income tax (IR) up to one million dirhams, counted together with any voluntary departure indemnity and damages (article 57-7° of the General Tax Code).
The final settlement in Morocco: leave and notice
When the employee leaves, the employer also pays what is still owed. The calculator adds two items to the indemnity; the last salary comes from the month's payroll.
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Paid leave not taken
The employee earns a day and a half of leave per month of work, two days under 18 (article 231), plus a day and a half per period of five years of seniority, up to 30 days a year (article 232). Days not taken are paid on leaving (articles 251 and 252). The calculator values a day at 1/26 of the monthly salary, a month being 26 days of actual work (article 238).
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Notice not worked
If the employer ends the contract without letting the notice run, they pay the salary the employee would have earned during it (article 51), unless there was gross misconduct. The calculator takes the minimum length of Decree No. 2-04-469; 8 days count as 8 working days, at 1/26 of the monthly salary.
Seniority Manager or equivalent Employee or worker Under one year 1 month 8 days One to 5 years 2 months 1 month Over 5 years 3 months 2 months
Unfair dismissal: damages on top
This is not the severance indemnity. If the dismissal is found unfair, the employee can obtain, through conciliation at the labour inspectorate or in court, damages set on the basis of one and a half months' salary per year or part of a year, capped at 36 months (article 41). The calculator does not include them.
Examples
Severance pay calculation examples
Three cases, with 191 hours a month. Gross amounts in dirhams, rounded to the centime.
| Case | Calculation | Result | Try it |
|---|---|---|---|
| An employee paid 4,500 a month, dismissed after 3 years | 3 × 96 h = 288 h × 4,500 ÷ 191 | Severance 6,785.34 | |
| An employee on 8,000 a month, after 7 years and 6 months, with 10 days of leave not taken and a notice not worked | 5 × 96 h + 2.5 × 144 h = 840 h × 8,000 ÷ 191 | Severance 35,183.24 Leave 3,076.92 · Notice 16,000.00 Settlement 54,260.16 | |
| A manager on 12,000 a month, after 18 years | 5 × 96 h + 5 × 144 h + 5 × 192 h + 3 × 240 h = 2,880 h × 12,000 ÷ 191 | Severance 180,942.41 |
Frequently asked questions
Severance pay in Morocco: your questions
How is severance pay calculated in Morocco?
Divide the average gross monthly salary by 191 to get the hourly wage. Then multiply it by 96 hours for each of the first five years, 144 hours for years 6 to 10, 192 hours for years 11 to 15 and 240 hours beyond (article 53 of the Labour Code), and add the results.
Who is entitled to severance pay?
An employee on a permanent contract (CDI), dismissed after at least six months of work in the same company, however they are paid (article 52). It is not due after gross misconduct (articles 39 and 61), nor at the normal end of a fixed-term contract.
Which salary counts?
The average pay of the 52 weeks before the contract ends (article 55), including work-related bonuses, benefits in kind, commissions and tips, but not expense reimbursements (article 57). This base cannot be lower than the legal minimum wage (article 56).
Why divide the salary by 191 hours?
The Labour Code sets normal working time at 2,288 hours a year outside agriculture (article 184), or 190.67 hours a month, and counts 191 hours of work as one month (article 238). In agriculture it is 208 hours: change the number of hours in the calculator.
What does the final settlement include?
The sums still owed when the contract ends: the last salary, the severance indemnity, the allowance for paid leave not taken (articles 251 and 252) and, if the employer did not let the notice be worked, the notice indemnity (article 51). The calculator gives a gross estimate, without the last salary.
How long is the notice period?
At least, under Decree No. 2-04-469: for a manager, 1 month under one year of seniority, 2 months from one to 5 years, 3 months beyond; for an employee or a worker, 8 days, 1 month, then 2 months. The contract or the collective agreement may provide longer, never shorter.
Is severance pay taxed?
It is exempt from income tax (IR) up to one million dirhams, counted together with any voluntary departure indemnity and damages awarded for a dismissal (article 57-7° of the General Tax Code). Unused leave and notice pay are not part of this exemption.
And if the dismissal is unfair?
On top of the severance indemnity and the notice, the employee can claim damages (article 41). Without an agreement at the labour inspectorate, the court sets them on the basis of one and a half months' salary per year or part of a year, capped at 36 months. The calculator does not include them.
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