Morocco ranks 15th globally in employer burden index

Wednesday 15 - 18:00

By: Azzat Manal

Morocco ranks 15th globally in employer burden index

Morocco has been ranked 15th worldwide in the 2026 Global Employer Burden Index, highlighting the relatively high financial and legal obligations employers face when hiring and managing employees.

The index, published by international employment solutions provider Employ Borderless, evaluates 192 countries based on the overall cost and regulatory responsibilities associated with employing workers. The ranking considers three main factors: mandatory employer social security contributions, statutory severance payments, and legal notice periods for terminating employment contracts.

Morocco received 75 out of 100 points, placing it among countries where employers face comparatively higher labor-related obligations than many other economies.

According to the report, employers in Morocco contribute approximately 21% of an employee's salary to mandatory social security schemes, while employees contribute around 6.7%. The study also estimates that statutory severance compensation averages more than 13 weeks of pay, with mandatory notice periods exceeding seven weeks, depending on employment conditions.

The report notes that these obligations increase the overall cost of employment and are important considerations for companies planning to invest or expand their workforce in the country.

Morocco ranked ahead of several European economies, including France and Spain, while Egypt was listed among the countries with the highest employer burdens worldwide. Argentina topped the global ranking, followed by Belarus and the Czech Republic, reflecting significant employer obligations in those labor markets.

The index emphasizes that comparing labor costs solely through salary levels can be misleading. Instead, businesses should also account for social contributions, severance requirements, and dismissal regulations, which significantly affect the total cost of employing staff.

The report recommends that multinational companies, financial planners, and human resources departments incorporate these legal and financial obligations into workforce planning and investment strategies. Understanding the full employment framework, it says, is essential for accurately assessing operating costs and making informed business decisions across international markets.