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Morocco Severance Pay Calculator 2026 — Free Tool

Labor Code article 53 scale, article 43 notice period: estimate your rights in seconds.

Moroccan severance pay is calculated under Labor Code article 53 (law 65-99). It depends on your seniority and last salary. The scale provides four tiers: 96 hours of salary per year for the first 5 years, 144 h for years 6-10, 192 h for years 11-15, and 240 h beyond 15 years. Notice period indemnity (article 43) is added, varying by status (executive or not) and seniority.

Your employment data

Full salary before deductions, bonuses included.

Total service duration with employer. Decimals accepted (e.g. 7.5).

Your estimated indemnities

Total legal indemnity

47,749 MAD

Notice period indemnity

2 months = 20,000 MAD

Reference hourly wage

52 MAD

Indicative per Moroccan Labor Code. Does not account for specific collective bargaining agreements, conventional indemnities, or damages for unfair dismissal.

Detail by seniority tier

0-5 years (96 h/year)
25,131 MAD
5-10 years (144 h/year)
22,618 MAD
10-15 years (192 h/year)
0 MAD
Beyond 15 years (240 h/year)
0 MAD

Calculation basis: 191 hours/month (legal working time).

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How does this calculator estimate your severance pay?

The calculator applies the scale of article 53 of the Moroccan Labor Code (law 65-99), which expresses the legal indemnity in hours of salary per year of seniority, across four cumulative tiers: 96 hours per year for the first 5 years, 144 hours for years 6 to 10, 192 hours for years 11 to 15, and 240 hours beyond 15 years. The reference hourly wage is your last gross monthly salary divided by 191 hours, Morocco's legal monthly working time (44 hours per week).

Example with the tool's default values: for 8 years of seniority and a last salary of MAD 10,000, the indemnity equals 5 × 96 h + 3 × 144 h = 912 hours, i.e. about MAD 47,750. Notice period indemnity (article 43) is added when notice is not worked: for non-executives, 8 days below one year of seniority, 1 month between 1 and 5 years, 2 months beyond; for executives, 1, 2 and 3 months respectively. Our non-executive with 8 years of seniority would thus receive 2 months of notice (MAD 20,000), for a total of about MAD 67,750.

The result is the legal minimum: it includes neither article 41 damages for unfair dismissal (1.5 months of salary per year of seniority, capped at 36 months, awarded by the labor court), nor unused paid leave, nor more favorable conventional indemnities. The legal indemnity is exempt from income tax within the legal scale, and can be combined with the CNSS IPE job-loss benefit if you qualify.

Severance calculation frequently asked questions

How much do you get for 8 years of seniority on a MAD 10,000 salary?

About MAD 47,750 in legal severance: 5 years × 96 h + 3 years × 144 h = 912 hours, multiplied by the hourly wage of MAD 52.36 (10,000 ÷ 191). If notice is not worked, add 2 months of salary (MAD 20,000) for a non-executive, for a total of about MAD 67,750 excluding any damages.

How long is the dismissal notice period in Morocco?

Article 43 of the Labor Code sets it by status and seniority. Non-executives: 8 days below one year, 1 month between 1 and 5 years, 2 months beyond 5 years. Executives: 1 month below one year, 2 months between 1 and 5 years, 3 months beyond. If the employer waives the notice period, the equivalent salary must be paid.

Why does the calculation use 191 hours per month?

It is Morocco's legal monthly working time: 44 hours per week × 52 weeks ÷ 12 months ≈ 191 hours. The reference hourly wage is therefore the last gross monthly salary divided by 191 — it is also the official basis of the SMIG minimum wage (MAD 3,111.12 per month, i.e. MAD 16.29 per hour in 2026).

How much extra can you get for unfair dismissal?

Article 41 of the Labor Code provides damages of 1.5 months of salary per year of seniority, capped at 36 months of salary. They come on top of the legal severance and notice indemnities, but are only awarded by the labor court (or through preliminary conciliation) if the dismissal is recognized as unfair.

Are bonuses included in the salary used for the calculation?

Yes. The calculation basis is the last full gross salary, before deductions, including the base salary and its work-related accessories (bonuses, commissions, benefits in kind). Reimbursements of professional expenses are excluded. Enter your gross salary including bonuses in the calculator for a faithful estimate.

Legal scale and assumptions verified on August 19, 2026 — Wafir.ma

Wafir.ma is an independent comparison service — neither an ACAPS-licensed insurance broker nor a credit institution licensed by Bank Al-Maghrib. Displayed rates are indicative only.

Frequently asked questions

What is the legal basis for severance pay in Morocco?
Labor Code article 53 (law 65-99) sets the legal indemnity scale. Article 43 defines notice period duration and indemnity. Article 41 also provides damages in case of unfair dismissal (1.5 months' salary per year of seniority, capped).
Is the indemnity taxable?
No, legal severance pay is IR-exempt in Morocco within the legal scale limit. Conventional or settlement indemnities beyond the scale are taxable.
What happens for gross misconduct dismissal?
In case of recognized gross misconduct (article 39), the employee loses the right to severance pay, notice indemnity, and damages. They can contest before the labor court.
What about resignation?
Resignation does not entitle to severance pay. The employee must respect the notice period owed to the employer. A resignation caused by harassment or the employer's gross fault may be reclassified as unfair dismissal.
Does CNSS IPE (Job Loss Indemnity) add up?
Yes, if you were CNSS-affiliated with at least 780 days contributed in the last 3 years. IPE is 70% of the average salary over the last 36 months, capped and paid for maximum 6 months.