Calculation of severance pay in Morocco

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Calculation of severance pay due to termination in Morocco

Simulation of calculation of severance pay due to contract termination in Morocco
(A) Salary for the current month 0.00
(B) Leave not received 0.00
(C) Notice salary
How to calculate notice pay?
0.00
(D) Severance pay
Method of calculating severance pay.
0.00
(E) Damages and interest
How to calculate damages?
0.00

Calculation of severance pay due to termination in Morocco

Total Severance Package, including: Current month's salary, vacation, Notice period, Severance pay.
(A)+(B)+(C)+(D)
0.00
Total Severance Pay with Damages
(A)+(B)+(C)+(D)+(E)
0.00

How to calculate the salary for the current month?

The calculation of the salary for the current month depends on several factors, including:

Your salary

  • Your salary is generally fixed and paid at the end of the month. It is calculated based on your monthly pay rate.

Your leave

  • Unpaid leave: If you have taken unpaid leave during the month, your salary will be reduced accordingly.
  • Sickness: If you were sick during the month, your salary will be reduced accordingly.

Your bonuses and benefits

  • Bonuses: You may receive bonuses, such as a bonus for your seniority or a bonus for your performance.
  • Allowances: You may also receive allowances, such as an allowance for your transportation costs or an allowance for your meals.

Calculating your gross salary:

Gross salary is calculated before social charges and taxes are withheld. Here is the general formula:
Gross salary = (Number of days worked x Daily wage) + Bonuses + Allowances

How to calculate the pay for unused vacation days?

According to the Moroccan Labor Code, any employee who has completed six months of continuous service in the same company or with the same employer is entitled to paid annual leave.

Length of leave

The length of annual leave is set as follows:

  • 1.5 working days per month of service for employees over 18 years of age.
  • 2 working days per month of service for employees under 18 years of age.

The length of leave is increased by:

  • 1.5 working day per full period of 5 years of service,
  • without the total annual leave exceeding 30 working days.

Public holidays and paid holidays

The length of annual leave is increased by the number of paid holidays and public holidays that fall during the period of paid annual leave.

Notes :

  • In general, employees must take their annual leave within 18 months of the end of the year in which it is acquired.
  • In the event of termination of the employment contract, the employee is entitled to compensation for unused annual leave.

How to calculate the salary compensation for the notice period?

Except in cases of serious misconduct, both the employer and the employee are required to respect the notice period. Failure to comply with the notice period by either party gives rise to the payment of a notice indemnity to the other party.

The notice indemnity is equal to the salary that the employee would have received if they had remained in employment during the notice period. It is calculated on the basis of the employee's gross salary, taking into account the usual bonuses and allowances.

Calculation of the notice period for executives

Less than 1 year 1 month
From 1 to 5 years 2 months
More than 5 years 3 months

Calculation of the notice period for employees

Less than 1 year 8 days
From 1 to 5 years 1 month
More than 5 years 2 months

How to calculate severance pay?

Severance pay is based on the average salary received by the employee over the past 52 weeks. The amount of severance pay varies depending on the employee's seniority:

From 1 to 5 years 96 hours
From 6 to 10 years 144 hours
From 11 to 15 years 192 hours
More than 15 years 240 hours

Notes :

  • Wage hours are converted to dirhams using the employee's hourly pay rate.
  • Severance pay is cumulative with notice pay and paid vacation leave.

How to calculate damages in case of wrongful termination?

Article 41 of the Moroccan Labor Code states that when a termination of an employment contract is deemed abusive by one of the parties, the injured party may claim damages. The amount of these damages is determined by the court and cannot exceed 1.5 months of salary per year of seniority, with a total cap of 36 months.

Cumulation of benefits

These damages are cumulative with the severance pay and notice pay provided for in the employment contract or by law.

Payment

The amount of damages is paid to the employee at the same time as the severance pay. It is important to note that the severance pay is distinct from the salary that the employee receives for the days of work performed during the month and for which he has not yet been paid.

Notes :

  • Amount of damages: 1.5 months of salary per year of seniority (capped at 36 months)
  • Cumulation: Possible with severance pay and notice pay
  • Payment: Simultaneously with the severance pay
  • Distinction: Severance pay is different from the salary for unpaid days