Morocco's Ranking in Global Employer Burden Index
According to the recently released "Global Employer Burden Index 2026" by Employ Borderless, a firm specializing in employment solutions, Morocco has secured the 15th position out of 192 countries evaluated. This ranking highlights the various financial and procedural burdens that employers face in the country, where Morocco achieved a composite score of 75 out of 100. This score reflects the legal obligations imposed on employers, shedding light on the broader implications for business operations and employment practices within the nation.
Key Financial Contributions and Comparisons
Delving deeper into the specifics affecting Moroccan employers, it is noted that the mandatory social contributions required from employers amount to 21% of an employee's salary, while employees themselves contribute 6.7%. Furthermore, upon termination of employment, the average legal severance pay stands at approximately 13.4 weeks' worth of salary, alongside a mandatory notice period averaging 7.2 weeks. This framework positions Morocco favorably against regional peers; for instance, it surpasses France, which ranks 17th with a score of 74, and Spain at 19th with a score of 72, while Algeria is at 23rd with a score of 70. Interestingly, Egypt ranks significantly higher at 5th place, indicating a more substantial burden on employers in that region.
On a global scale, the index identifies the five countries with the highest employer burdens. Argentina leads the list at 1st with a score of 85.9, followed closely by Belarus at 2nd with 84.7, and the Czech Republic at 3rd with 82.9. Both Vietnam and Egypt share the 4th and 5th positions, each attaining a score of 82.5. In contrast, New Zealand finds itself at the bottom of the list, ranking 163rd with a minimal burden score of 4.2, followed by Romania and Micronesia. The United States ranks 158th with a burden score of 13.9, largely due to the absence of mandatory severance pay and legal notice periods, with employer social contributions averaging only 8.1%.
The methodology underpinning the index employs a precise calculation of employer burdens based on three fundamental pillars, each weighted distinctly: mandatory social contributions from employers account for 50% of the index weight, while legal severance pay constitutes 30%, and the mandatory notice period makes up the remaining 20%. This nuanced approach emphasizes that comparing only gross wages across countries can be misleading for businesses, as the total employment costs can vary significantly based on local laws. Consequently, financial managers and international hiring officials must incorporate these three critical elements—contributions, severance, and notice periods—into their budgeting processes to accurately assess the actual cost of employment for each employee.
As reported by hespress.com.
