Employer of Record in Mozambique

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

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.

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.

An employee whose age is 18 or older is allowed to work 48 hours per week. A minimum meal interval of 30 minutes must be observed by employees who work more than 5 hours in a day. In typical working hours, Monday through Friday, the hours are 8:00 AM to 5:00 PM.

Any work conducted beyond the regular daily working hours is classified as overtime. Mozambican labor law limits overtime to a maximum of 2 hours per day, 8 hours per week, and 200 hours per year. These limits are designed to prevent employee burnout and ensure adequate rest periods.

• For overtime during normal workdays, employees must receive at least 150% of their regular hourly wage (time-and-a-half).
• The rates increase for more disruptive overtime periods: work on weekly rest days or public holidays must be compensated at 200% of the regular rate (double time).
• Night shift overtime (typically between 8:00 PM and 6:00 AM) carries an additional premium of 25% on top of the applicable overtime rate.

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Setting up a local legal entity in Mozambique can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Employers in Mozambique must navigate a structured payroll tax system, encompassing income tax, social security contributions, and municipal taxes. Employers are responsible for calculating deductions, including progressive income tax rates ranging from 10% to 32%, and social security contributions (3% from employees and 4% from employers). Additionally, municipalities levy taxes, which vary by region and are due in three installments.

Using payroll management software like Playroll can assist employers in consolidating payroll data and staying compliant with Mozambican regulations.

One of the biggest risks in global hiring is payroll mismanagement. In Mozambique, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Mozambique:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Mozambique’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Mozambique, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the Temporary Work Visa, Permanent Residence Visa, and Special Work Permit. Employers must ensure compliance with local labor regulations when sponsoring foreign employees.

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:

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

Maternity Leave In Mozambique

Female employees in Mozambique are entitled to 90 calendar days of maternity leave,60 of which are paid, 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 seven unpaid days of paternity leave. 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.

In Mozambique, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Mozambique actually want and need.

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. The employee then has 15 days to reply, while the trade union is given a further 5 days for consultation. Afterwards, the employer has 30 days to reach a decision. 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