Severance pay in Morocco 2026: notice, severance and unemployment benefit
When a job ends in Morocco, the calculator above estimates the statutory severance pay, the notice period, the payment for unused leave and the unemployment benefit, with the tax on each part. Below you will find the rules in brief and examples for different lengths of service.
The rules in brief
- Notice and indemnity: After 6 months of service an employee dismissed for reasons other than serious misconduct is owed an indemnity of 96 hours of pay per year for the first 5 years, 144 hours for years 6–10, 192 hours for years 11–15 and 240 hours beyond. Notice for employees and workers is 8 days under 1 year, 1 month up to 5 years and 2 months after (managers 1 to 3 months). An abusive dismissal adds damages of 1.5 months’ pay per year, up to 36 months (not modelled).
- Loss-of-job allowance (IPE): The CNSS pays 70% of the average pay of the last 36 months, at most the minimum wage, for 6 months to employees who lose their job involuntarily and have 780 contribution days in the last 36 months, including 260 in the last 12.
Example: MAD 8,000 gross a month
| Years of service | Severance, net (MAD) | Notice period |
|---|---|---|
| 1 | 4,021 | 1 month |
| 2 | 8,042 | 1 month |
| 3 | 12,063 | 1 month |
| 5 | 20,105 | 2 months |
| 10 | 50,262 | 2 months |
| 15 | 90,471 | 2 months |
| 20 | 140,733 | 2 months |
| 25 | 190,995 | 2 months |
Case: “Dismissed (not for serious misconduct)”, leaving on 31 December 2026, without unused leave. These are legal minimums; a contract or collective agreement may give more.
What you receive: an example
With 9.8 years of service and 10 days of unused leave, ending on 31 December 2026:
| Item | Gross (MAD) | Net (MAD) |
|---|---|---|
| Dismissal indemnity (Labour Code art. 53; tax-free within the legal limits) | 44,230.37 | 44,230.37 |
| Unused leave (5 days) | 1,846.15 | 1,535.85 |
| Total | 46,076.52 | 45,766.22 |
Unemployment benefit
In this example the unemployment benefit comes to about MAD 20,536 in total (Loss-of-job allowance (IPE) of MAD 3,423 a month for 6 months: 70% of your average pay, at most the minimum wage (MAD 3,422.72); it needs 780 contribution days in the last 3 years). The conditions, such as the contributions you need, are listed in the rules above.
Frequently asked questions
How much severance do I get after 10 years in Morocco?
About MAD 50,262 net with MAD 8,000 gross a month, for “Dismissed (not for serious misconduct)”. The notice period is 2 months.
How long is the notice period?
In the example: 1 month after 1 year, 2 months after 5 years, 2 months after 10 years and 2 months after 20 years.
Do I get unemployment benefit?
In the example, about MAD 20,536 (Loss-of-job allowance (IPE) of MAD 3,423 a month for 6 months: 70% of your average pay, at most the minimum wage (MAD 3,422.72); it needs 780 contribution days in the last 3 years). The conditions are listed in the rules above.
Are these amounts exact?
They are estimates of the legal minimum under the 2026 rules. Your contract, a collective agreement or a court decision can give more.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.