Severance pay in Morocco, calculation and cases

How statutory severance pay is computed in Morocco under Labour Code article 53, exclusions, step-by-step example.

Read: 6 min · Category: Labour law · Updated: 2026-04-18 · Reviewed: 2026-04-18

A Moroccan CDI employee dismissed for any reason other than gross misconduct is owed statutory severance pay under Labour Code article 53, on top of any notice pay, accrued-leave pay, and possible abusive-dismissal damages (article 41, capped at 1.5 months per year of service up to 36 months). The base is the average of salaries over the 52 weeks preceding termination, including base pay, salary-like bonuses, benefits in kind, and overtime premiums. The scale is in hours per year of service across four cumulative tiers (96, 144, 192, 240), meaning a 12-year employee gets 5×96 + 5×144 + 2×192 hours, not 12×192. Below: the full scale, a worked example, special cases, and what to gather before any challenge.

Recruiter reviewing a candidate's documents during a meeting
The disciplinary procedure must be properly followed for the dismissal to stand, prior hearing, written grounds, deadlines. Skipping any step exposes the employer to reclassification and damages. Photo: RDNE Stock project via Pexels. Pexels licence.

When it applies

  • CDI (permanent) contract;
  • At least 6 months continuous service with the employer;
  • Dismissal for a reason other than the gross misconduct listed in article 39 (theft, violence, disclosing secrets, drunkenness on duty, etc.);
  • Disciplinary procedure properly followed (prior hearing, written grounds, deadlines).

If gross misconduct is established, statutory severance is not owed, but unpaid salary up to termination, accrued-leave pay, and accrued seniority bonus are still owed.

Calculation base

The base is the average of salaries received over the 52 weeks preceding termination, including:

  • Base pay;
  • Salary-like bonuses and allowances (seniority, performance, year-end);
  • Benefits in kind valued;
  • Overtime premium.

Excluded, reimbursements of actual expenses, non-periodic payments tied to exceptional events.

Scale (article 53)

Per year or fraction of year of service:

SeniorityHours per year of serviceDays equivalent
0 to 5 years96 h~4 weeks (~1 month)
6 to 10 years144 h~6 weeks (~1.5 months)
11 to 15 years192 h~8 weeks (~2 months)
Above 15 years240 h~10 weeks (~2.5 months)

Tiers are cumulative, a 12-year employee gets 5 × 96 + 5 × 144 + 2 × 192, not 12 × 192.

Step by step

  1. Compute average hourly pay over the last 52 weeks.
  2. Allocate seniority across the tiers.
  3. Multiply each tier by the hours scale.
  4. Sum and apply the average hourly rate.
Calculator and pen on top of a financial bar graph
The four tiers are cumulative, every year of seniority earns at its tier's hourly rate, not the highest tier reached. The example below makes this concrete. Photo: Pixabay via Pexels. Pexels licence.

Worked example

Employee with 8 years’ seniority, average hourly pay MAD 35.

  • Tier 1, 5 × 96 h = 480 h;
  • Tier 2, 3 × 144 h = 432 h;
  • Total = 912 h;
  • Severance = 912 × 35 = MAD 31,920 gross.

Combines with other payments

Severance is on top of:

  • Pay in lieu of notice (if notice wasn’t served);
  • Accrued-leave pay (earned but unused leave);
  • Possible damages for abusive dismissal (article 41), capped at 1.5 months per year of service, maximum 36 months.

Special cases

  • Redundancy, specific procedure (works-council information/consultation, governor’s authorisation in some cases); statutory severance is due in addition to any specific indemnities required by law or collective agreement.
  • Force-majeure termination, the employer must prove absolute and lasting impossibility; the judge decides on residual indemnities.
  • Resignation reframed as constructive dismissal, complex; get legal advice.

Watch-outs for employees

  • Ask for a written letter of dismissal with reasons and a final settlement receipt with line-item detail.
  • The time bar to challenge a dismissal is short (90 days at the social court, with exceptions), don’t wait.
  • Keep every payslip and contract, you’ll need them to prove seniority and average pay.

Compute your severance in seconds with the severance calculator, tier breakdown and totals.

Hands highlighting financial documents on a desk
Pull together every payslip for the last 52 weeks, your contract, and the dismissal letter before any meeting with HR or a lawyer. The paper trail decides the outcome. Photo: Karolina Grabowska via Pexels. Pexels licence.

Moving on?

If the dismissal is final, the next priority is your next role. Browse current openings in Morocco on Bayt.com, your seniority and prior role title open access to listings that aren’t visible to entry-level candidates. Severance buys you the time to be selective.

Further reading

Rates and procedures change — check the latest version on the cited official source.

← All guides