Morocco ranks 15th globally among countries with the highest employer burdens

16:41

By: Azzat Manal

Morocco ranks 15th globally among countries with the highest employer burdens

Morocco has ranked among the countries where employers face relatively high legal and financial costs associated with hiring and managing workers, according to the 2026 Global Employer Burden Index.

The index, published by employment consultancy Employ Borderless, assesses the legal and operational costs of employing workers across 192 countries and territories. Morocco scored 75 out of 100, placing it 15th worldwide and among the economies with the highest levels of employer obligations.

The overall burden becomes particularly visible when mandatory social security contributions are taken into account. According to the report, an employee receiving a net annual salary of $50,000 costs a Moroccan employer approximately $60,000 once compulsory social security contributions are included.

That figure remains below the estimated cost in Argentina, which topped the global ranking. The same employee would cost an employer around $69,500 in Argentina, while the corresponding figure in the United States is approximately $54,000, despite the country ranking much lower in the overall index.

In Morocco, employers contribute around 20.1% of an employee’s salary to social security, while employees contribute approximately 6.7%. These mandatory contributions form a major part of the overall employer burden measured by the index.

Employment termination rules also play an important role. The report estimates that statutory severance compensation in Morocco corresponds to about 13.4 weeks of salary, while the mandatory notice period is approximately 7.2 weeks.

Moroccan law does not, however, require employers to provide a 13th-month salary at the end of the year. Such an additional payment exists in several other countries, including Argentina, Brazil and Vietnam, and is incorporated into the broader assessment of employment costs.

The index is based on three main components. Employer social security contributions account for half of the overall score, statutory severance compensation represents 30%, and mandatory notice periods make up the remaining 20%.

Each component is assessed according to a country’s position relative to the other economies included in the study. The methodology does not replace unavailable information with assumed estimates, according to the report.

Argentina ranked first globally with 85.9 points, followed by Belarus with 84.7 and the Czech Republic with 82.9. Vietnam and Egypt completed the top five, scoring 82.6 and 82.5 points respectively.

At the opposite end of the ranking, New Zealand recorded the lowest employer burden at 4.2 points, followed by Romania at 7.5 and Micronesia at 12.3.

Significant differences were also recorded between regions. Europe had the highest average employer burden, with an average score of 51.7 across 47 countries. Oceania recorded the lowest regional average at 29.1.

The report also found that 38 of the 192 countries assessed do not establish a statutory minimum level of severance compensation. In those jurisdictions, the amount paid when employment ends is largely determined by contractual terms and negotiations between employers and workers.

The study highlights a broader distinction between labor costs and regulatory burdens. Countries with relatively high wages do not necessarily impose the highest legal costs on employers, reflecting substantial differences in social security systems, labor regulations and termination rules.

The findings place Morocco among the economies where employers face significant statutory obligations, while also illustrating the complexity of comparing labor-market costs across countries with very different employment and social protection systems.