Employer of Record in Mozambique

Businesses can only operate smoothly in Mozambique if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Mozambique below, to avoid any compliance issues.

Employment Contract Requirements

In Mozambique, the Labour Law oversees all work relationships. Employment contracts, whether temporary or permanent, must be in writing and include key details like:

• Identification of Parties
• Compensation
• Date of Commencement
• Expiration of Contract

Onboarding Process

We can help you get a new employee started in Mozambique quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Mozambique

A standard work schedule consists of 8 hours per day and should not exceed 48 hours per week.

Overtime in Mozambique

Any work conducted beyond the regular daily working hours is classified as overtime. A maximum of 200 overtime hours per year is allowed, and compensation must be provided at an extra rate of 50% per hour until 8 pm, and 100% thereafter.

Probation Period in Mozambique

The probation period is 180 days for mid-level and senior technicians, as well as individuals in leadership and management roles. For all other employees, the probationary period is set at 90 days.

Fiscal Year in Mozambique

July 1 - June 30 is the 12-month accounting period that businesses in Mozambique use for financial and tax reporting purposes.

Payroll Cycle in Mozambique

The payroll cycle in Mozambique is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Mozambique

In Mozambique, there isn't a universal minimum wage. Instead, various industry sectors have their own monthly minimum wages mandated at the national level. Some sectors may have subsectors with specific minimum wages, while others might follow a generally applicable sector rate alongside at least one subsector rate that is nationally mandated.

Bonus Payments in Mozambique

In Mozambique, there is no requirement for employers to offer bonus payments to their employees.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 4% on top of the employee salary in Mozambique.

Employee Payroll Tax Contributions

In Mozambique , the typical estimation for employee payroll contributions cost is around 3%.

Individual Income Tax Contributions

Income tax rates in Mozambique follow a progressive scale, ranging from 10% to 32%. The national personal income tax rates are determined based on specific brackets, each with its minimum and maximum amounts of annual income as follows:

Pension in Mozambique

Women can apply for a pension at 55, and men at 60. To qualify, employees need 20 years of social security enrollment with at least 10 years of contributions. Alternatively, regardless of age, employees qualify for a pension after 30 years of enrollment or 25 years of contributions (300 months).

Mandatory Leave Entitlement in Mozambique

The annual leave entitlement in Mozambique is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Mozambique

The Mozambican government acknowledges nine public holidays. On these days, employers are required to grant paid leave to employees. The public holidays are:

Paid Time Off in Mozambique

The annual leave accrual policy in Mozambique is structured as follows:

• Employees are entitled to 1 day of vacation for every month of service in the first year
• 2 days for every month of service in the second year
• 30 days for every year of service starting from the third year onwards

Maternity Leave In Mozambique

Female employees in Mozambique are entitled to 60 days of paid maternity leave, which can commence up to 20 days before the due date. Maternity benefits are provided through Mozambique's social security system.

Paternity Leave In Mozambique

Male employees are entitled to one day of paternity leave every two years. This leave is to be taken on the day immediately following the birth.

Sick Leave In Mozambique

Employees are entitled to 15 days of paid sick leave or 5 non-consecutive days per quarter, covered by the employer. If needed, additional paid sick leave may be granted by Social Security upon the worker's request to the health board, extending up to 365 days of continuous sick leave.

Parental Leave In Mozambique

While there is no specific law on parental leave in Mozambique, employees are eligible for both maternity and paternity leave.

Bereavement Leave

Employees can take up to five days of paid off for the death of close family members, such as a spouse, parents, children, and others. For the death of relatives like parents-in-law, uncles, aunts, and cousins, employees are entitled to up to two days of leave.

Marriage Leave

Employees are eligible for five days of paid leave for their marriage in Mozambique.

Termination Process in Mozambique

Employee terminations are governed by specific procedures. To terminate an employee for just cause, employers must provide a written indictment note to both the employee and the trade union. Unlike some jurisdictions with at-will termination practices, Mozambique's termination process is contingent on the existence of valid reasons for dismissal.

Notice Period in Mozambique

During the probationary period, a one-week notice is required for termination. After successfully completing the probationary period, the notice period extends to one month for subsequent terminations.

Severance in Mozambique

Employees in Mozambique are entitled to severance pay based on the nature of termination. The severance amount can be up to 30 days' worth of pay for each year of service