In a recent report by Employ Borderless, Morocco has been identified as one of the countries with significant legal and financial burdens on employers, securing the 15th position globally in the 2026 Global Employer Burden Index. With a score of 75 out of 100, Morocco stands alongside Tajikistan in this ranking, which assesses 192 countries and territories based on the costs and legal obligations that employers encounter during the hiring process and when terminating employment.
The Global Employer Burden Index evaluates three primary components: employer social-security contributions, mandatory severance pay, and legal notice periods. A higher score indicates a greater burden on employers. In Morocco, employers are required to contribute 20.1% of employee wages towards social-security programs. Furthermore, the report indicates that statutory severance can amount to 13.4 weeks of salary, with the legal notice period averaging 7.2 weeks. These figures illustrate the financial responsibilities that Moroccan employers face.
According to estimates from Employ Borderless, hiring an employee with an annual salary of $50,000 will cost Moroccan employers approximately $60,000 when considering mandatory employer contributions. It is important to note that this estimate is based on the index's methodology and does not account for contribution ceilings or other potential employment-related expenses.
Morocco's score places it ahead of various prominent economies; Brazil also scored 75, while Portugal and France recorded scores of 74. Spain is positioned at 19th with a score of 72, Algeria at 23rd with a score of 70, and Tunisia at 49th with a score of 60. The index highlights Argentina as the country with the heaviest employer burden, achieving a score of 86, followed closely by Belarus at 85 and Czechia, Vietnam, and Egypt, each scoring 83.
On the contrary, New Zealand holds the position of least burdened employer, while the United States ranks 158th out of 192 countries with a score of 34. Morocco's relatively high ranking can be attributed to its employer contribution rates and the associated costs when ending employment. Although Morocco's 20.1% social-security contribution is higher than Tunisia's 15.4%, it is lower than Algeria's 25.3%. Egypt, while having a lower contribution rate of 18.8%, ranks fifth due to its more stringent severance and notice requirements.
The index reveals that 38 countries do not impose any statutory severance requirements. Among the regions, Europe exhibited the highest average employer burden, with countries averaging 51.7 points across 47 evaluated nations, compared to an average of 29.1 points for Oceania. The dataset, which is based on statutory information, aims to illustrate how national employment regulations influence the costs and responsibilities associated with employing workers. Employ Borderless has made the 2026 dataset available as open data, with the latest updates released in September 2026.
As reported by moroccoworldnews.com.
