Definitive Guide to Hiring in Mozambique

Hiring in Mozambique

Hiring employees compliantly in Mozambique means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Mozambique so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Mozambique; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Mozambique

Employee Probation Period

• Probation period is as follows: -
  • 180 days for mid-level and senior technicians and employees engaged in leadership and management positions jobs,
  • 90 days for employees as a whole

Annual Leave in Mozambique

• In general, employees are entitled to:
  • first year of employment: one day of paid leave per month.
  • second year of employment: two days of paid leave per month.
  • third year+: 30 days of paid leave.

Holidays in Mozambique

Maternity Leave Mozambique

• Female employees are generally eligible for 60 days of maternity leave, which can begin up to 20 days before the due date. 
• They are also generally entitled to up to 30 days of explained absences per year, which can be used for things like hospitalization of a child.

Paternity Leave Mozambique

Sick Leave in Mozambique

• Employees are generally eligible for up to 15 days of sick leave, or 5 non-consecutive days per quarter. 
• If the employee needs more time s/he must go to the health board. 
• Social security will pay for 365 days of continuous sick leave for a non-occupational illness or accident.

Working Hours in Mozambique

Overtime in Mozambique

Termination of Employment in Mozambique

• To terminate an employee for just cause, the employer must provide a written indictment note to the employee and the trade union within 30 days of the fault. 
• The employee has 15 days to respond and the trade union an additional five days to consul. 
• Afterwards, the employer has 30 days to make a decision.

• Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice.
• In general, employees on indefinite-term contracts are eligible for severance pay. 
• Employees whose wages are:

• 1 to 7 times the national minimum wage: receive 30 days’ pay per year of service
• 8-10 times the national minimum wage: receive 15 days’ pay per year of service
• 11-16 time the national minimum wage: receive 10 days’ pay per year of service
• 16+ times the national minimum wage: receive 3 days’ pay per year of service

Notice Period in Mozambique

• Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice.

Severance in Mozambique

• In general, employees on indefinite-term contracts are eligible for severance pay.
• Employees whose wages are:
  • 1 to 7 times the national minimum wage: receive 30 days’ pay per year of service
  • 8-10 times the national minimum wage: receive 15 days’ pay per year of service
  • 11-16 time the national minimum wage: receive 10 days’ pay per year of service
  • 16+ times the national minimum wage: receive 3 days’ pay per year of service

Mozambique Salary and Wages

13th / 14th Month Salary in Mozambique

• Yes (Mandatory)
• There seem to be a statutory 13th month salary for the public service.
• There is no evidence that this also applies to the private sector.

• Social security contributions are payable monthly on all salaries, wages, regular bonuses, or other regular income, excluding meal subsidies. 
• The employer contributes an amount equal to 4% of monthly salary, and the employee contributes 3% of monthly salary. 
• The employer withholds employees’ contributions. 
• Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country.

Immigration Mozambique

• A valid passport and entry visa are required to enter Mozambique. 
• South African and Zimbabwean passport holders are exempt from the visa requirement for entries of up to 30 days. 
• Business visas, which are multiple-entry visas valid for three months. 
• These visas may be renewed for an equal period. Each entry may be for up to 30 days.
• Residence/work visas, which are single-entry visas valid for 30 days and are extended for the duration of the work permit. 
• These visas are provided outside Mozambique if the individual wants to enter Mozambique with the intention of residing or working
• Foreign nationals must obtain a work permit to work in Mozambique, which is valid for up to two years and is renewable. 
• Companies may employ foreign nationals who do not require a work permit (through a communication to the Ministry of Labor) for the same period, up to a certain percentage of the total work force. 
• Foreign nationals who are self-employed individuals, shareholders or representatives of shareholders in Mozambique must also obtain a work authorization in their personal capacity. 
• After the period of validity for a work authorization or work permit expires, an individual may reapply for such items. 
• Work visas are valid for the period of duration of the work permit (maximum two years), with multiple entries.

Value Added Tax (VAT) in Mozambique

• VAT is chargeable on the sale of most goods and services as well as on imports. 
• The standard rate is 17%.

Mandatory Benefits in Mozambique

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Mozambique

Country Accruals Additional Information

Description

Social security contributions are payable monthly on all salaries, wages, regular bonuses, or other regular income, excluding meal subsidies. The employer contributes an amount equal to 4% of monthly salary, and the employee contributes 3% of the monthly salary. The employer withholds employees’ contributions. Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country.

Payroll Accruals Additional Information

Accrued Benefits in Mozambique

Why use Global Expansion to hire in Mozambique

Establishing a branch office or subsidiary in Mozambique can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Mozambique labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Mozambique law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Mozambique. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Mozambique Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.