Severance pay in Morocco: calculation and scale

Last updated: January 2026

An employee dismissed after at least 6 months of seniority is entitled to legal severance pay, calculated according to a progressive scale based on their seniority and salary.

Legal scale (in hours of salary per year of seniority)

Seniority Severance per year
1 to 5 years 96 hours of salary
6 to 10 years 144 hours of salary
11 to 15 years 192 hours of salary
Beyond 15 years 240 hours of salary

The calculation is cumulative: each seniority bracket is calculated separately at its own rate, then added together.

How is the hourly rate calculated?

The reference hourly rate is generally based on the average salary over the last 52 weeks (or the period worked if shorter), divided by the number of hours normally worked.

Example

For an employee with 8 years of seniority: the first 5 years at 96h + the following 3 years at 144h = 480h + 432h = 912 hours of salary in total, multiplied by the employee's hourly rate.

Is this severance pay taxable?

Severance pay is generally exempt from income tax and social contributions up to the legal scale above; any amount paid beyond this legal minimum may be subject to income tax.

Simulate a payslip with severance pay →