Employer of Record Guide in Mozambique
Mozambique's emerging economy offers incredible talent opportunities, but navigating local employment laws and compliance requirements can feel overwhelming. Our comprehensive guide simplifies the complexities so you can focus on building your dream team in this dynamic East African market.
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From Maputo's bustling business district to Beira's growing tech scene, Mozambique's diverse economic landscape spans petroleum engineering to software development. Understanding the local market dynamics—including a 15% federal tax rate and Portuguese as the official language—sets the foundation for successful hiring.
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Your EOR guide in Mozambique
Getting the details right matters when it comes to Mozambican employment law, from payroll cycles to leave entitlements. This practical guide walks you through everything you need to know to hire compliantly and confidently.
Minimum Wage
Mozambique's minimum wage varies by sector and is set in Mozambican Metical (MZN). The rates are established through government decree and reviewed periodically.
Note: Specific minimum wage rates should be verified with the Ministry of Labour and Social Security as they are subject to regular updates.
Payroll Cycle
- Monthly: Most common payment frequency in Mozambique
- Bi-weekly: Permitted but less common
- Employers must ensure consistent payment schedules as outlined in employment contracts
Individual Income Tax
Mozambique operates a progressive income tax system with rates applied to monthly earnings:
Note: Tax brackets and rates should be verified with current Mozambican tax authority guidelines as these are subject to annual adjustments.
Tax Residency Criteria
Individuals who reside in Mozambique for more than 183 days in a calendar year are considered tax residents and must pay Mozambican income tax on their worldwide income. Employers must ensure proper tax treatment based on residency status.
Employer Payroll Contributions
When hiring employees in Mozambique, employers are legally required to make several payroll-related contributions in addition to the employee's gross salary. These contributions fund social security programs and are managed by INSS (Instituto Nacional de Segurança Social).
Note: Specific contribution rates should be verified with INSS as these may vary by industry and are subject to periodic updates.
Working Hours
The standard work schedule in Mozambique is 8 hours per day, 48 hours per week, typically Monday through Saturday under Labor Law No. 13/2023.
- Daily Maximum: 8 hours per day
- Weekly Maximum: 48 hours per week
- Rest Periods: Mandatory rest periods during the workday
- Weekly Rest: Minimum 24 consecutive hours per week
Overtime Pay
- Overtime is paid at premium rates for hours worked beyond standard limits
- Calculation: Based on regular hourly wage with applicable multipliers
- Limits: Maximum overtime hours may be restricted by law
- Authorization: Overtime work typically requires employer authorization
Employment Classifications
- Full-time: Employees working standard hours (48 hours/week)
- Part-time: Employees working reduced hours with proportional benefits
- Fixed-term: Contracts with specific end dates
- Indefinite: Permanent employment contracts
Annual Leave
- Standard Entitlement: Employees are entitled to paid annual leave based on length of service
- Accrual: Leave typically accrues based on months of service
- Payout Rules: Unused leave may be paid out upon termination
- Scheduling: Leave scheduling subject to employer approval and operational needs
Sick Leave
- Entitlement: Employees are entitled to paid sick leave for medical reasons
- Medical Certification: Doctor's certificates may be required for extended absences
- Duration: Specific limits on paid sick leave periods
- Social Security: Some sick leave may be covered by social security benefits
Maternity Leave
- Duration: Female employees are entitled to maternity leave around childbirth
- Payment: Maternity benefits typically paid through social security system
- Job Protection: Employment protection during maternity leave period
- Notification: Required advance notice to employer
Paternity Leave
- Entitlement: Male employees may be entitled to paternity leave
- Duration: Specific number of days following birth of child
- Payment: May be paid through social security or employer
Other Leave Types
- Bereavement Leave: Time off for death of family members
- Marriage Leave: Leave for employee's wedding
- Study Leave: Educational leave for approved programs
- Emergency Leave: Time off for family emergencies
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | Varies by service | Yes | Employer |
| Sick Leave | As needed | Yes | Employer/Social Security |
| Maternity Leave | Statutory period | Yes | Social Security |
| Paternity Leave | Limited days | Yes | Social Security |
| Bereavement | Few days | Varies | Employer |
Termination Types
Termination With Just Cause:
- Requires serious misconduct or breach of contract
- No notice or severance required
- Must follow proper disciplinary procedures
Termination Without Just Cause:
- Permitted under specific circumstances
- Requires advance notice or payment in lieu
- May require severance payments
Notice Period Requirements
Notice periods vary based on length of service and type of contract:
Note: Specific notice periods should be verified with current Labor Law No. 13/2023 provisions.
Severance Pay
- Eligibility: Based on length of service and reason for termination
- Calculation: Typically calculated as multiple of monthly salary
- Payment Timeline: Must be paid within specified timeframe
Probationary Periods
- Duration: New employees may serve probationary periods
- Termination: Easier termination during probation with reduced notice
- Evaluation: Performance assessment during probationary period
Final Pay Requirements
Employers must provide final payment including:
- Outstanding salary
- Accrued vacation pay
- Any applicable severance
- Other earned benefits
Documentation Requirements
- Termination Letter: Written notice of termination
- Work Certificate: Employment history documentation
- Final Settlement: Detailed breakdown of final payments
National Public Holidays
Mozambique observes several national holidays throughout the year:
Note: Holiday dates should be verified annually as some may vary or be moved to create long weekends.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Mozambican Heroes' Day | February 3 |
| Women's Day | April 7 |
| Workers' Day | May 1 |
| Independence Day | June 25 |
| Victory Day | September 7 |
| Armed Forces Day | September 25 |
| Peace and Reconciliation Day | October 4 |
| Christmas Day | December 25 |
| Family Day | December 26 |
Holiday Pay Requirements
- Eligibility: Employees entitled to holiday pay for statutory holidays
- Rate: Typically paid at regular daily wage
- Working on Holidays: Premium pay for work performed on public holidays
Religious Observances
- Mozambique recognizes religious diversity
- Employees may request time off for religious observances
- Accommodation subject to operational requirements
Required Documents for Employment
- Employment Contract: Must be in Portuguese (official language) unless otherwise agreed
- Work Permit: Required for foreign nationals
- Tax Registration: Employee tax identification
- Social Security Registration: INSS enrollment
- Identity Documentation: Valid identification documents
- Academic Credentials: Educational certificates if required for position
Language Requirements
- Official Language: Portuguese is the official language
- Contract Language: Employment contracts must be available in Portuguese
- Workplace Communication: Portuguese proficiency may be required depending on role
Work Authorization
- Mozambican Citizens: No work authorization required
- Foreign Nationals: Must obtain appropriate work permits and visas
- Documentation: Proper immigration status must be maintained
Employment Contract Requirements
- Written Contracts: All employment relationships must be documented
- Essential Terms: Job description, salary, working hours, benefits
- Legal Compliance: Must comply with Labor Law No. 13/2023
- Language: Available in Portuguese
Social Security Registration
- INSS Enrollment: All employees must be registered with social security
- Employer Responsibility: Employers handle registration process
- Contributions: Both employer and employee contributions required
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit verification (if applicable) | Day 1-3 |
| Employment contract signed | Day 3-5 |
| Social security registration | Day 5-7 |
| Tax registration completed | Day 5-7 |
| Onboarding documentation | Day 7-10 |
Worker Classification
Proper classification between employees and independent contractors is crucial:
- Employees: Subject to labor law protections and benefits
- Contractors: Independent service providers with different obligations
- Misclassification Risks: Can result in penalties and back payments
Labour Inspections
- Government Authority: Ministry of Labour conducts workplace inspections
- Compliance Requirements: Employers must maintain proper records
- Penalties: Non-compliance can result in fines and sanctions
Anti-Discrimination Laws
Mozambican labour law prohibits discrimination based on:
- Gender
- Race
- Religion
- Political affiliation
- Disability
- Other protected characteristics
Health and Safety
- Employer Obligations: Provide safe working environment
- Training Requirements: Safety training for employees
- Accident Reporting: Workplace incidents must be reported
- Insurance: Workers' compensation coverage required
Collective Bargaining
- Union Rights: Employees have right to organize and join unions
- Collective Agreements: May override individual contract terms
- Negotiation Process: Formal procedures for collective bargaining
Cultural Considerations
- Business Culture: Relationship-building is important
- Communication Style: Respectful and formal approach preferred
- Work-Life Balance: Family and community obligations respected
- Local Customs: Understanding of Mozambican traditions valuable
Remote Work
- Legal Framework: Remote work arrangements subject to labour law
- Equipment: Employer responsibilities for work tools
- Health and Safety: Extends to remote work environments
- Documentation: Written agreements for remote work arrangements
What Borderless AI Handles:
- Employment contract preparation and compliance
- Payroll processing and tax withholding
- Social security registration and contributions
- Local labour law compliance monitoring
- Portuguese language documentation
- Government reporting and filings
Built-in benefits packages for Mozambique
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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