Mozambique

Mozambique

Global Employment Solutions & PEO in Mozambique

Omnipresent makes it fast and easy to employ remote talent in Mozambique. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Maputo
Currency
Mozambican Metical (MZN)
Native Language
Portuguese
Payroll Frequency
Monthly
Employee Protections
Moderate
Employment Costs
Low
Termination
Difficult
Immigration
Difficult
Cost of Living
Low
Population
31.25 Million

What You Need to Know About Employing in Mozambique

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Mozambique

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Mozambique. Traditional methods of establishing global employment and subsidiaries in Mozambique typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services help hundreds of organisations onboard new employees in Mozambique in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Mozambique.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Mozambique.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Mozambique.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Mozambique

Employee Income Taxes:

  • Grossed Income MZN 0 - 42,000 = Tax Rate 10%
  • Grossed Income MZN 42,001 - 168,000 = Tax Rate 15%
  • Grossed Income MZN 168,001 - 504,000 = Tax Rate 20%
  • Grossed Income MZN 504,001 - 1,512,000 = Tax Rate 25%
  • Grossed Income Above MZN 1,512,001 = Tax Rate 32%

Payroll Cycle:

Employees are usually paid monthly.

Mozambique

Employer Costs in Mozambique

Employer Contributions:

Employees are required to contribute 3% of the employee’s gross monthly remuneration.

Employee Contributions:

Employers are required to contribute 4% of the employee’s gross monthly remuneration.

Mozambique

Working Hours in Mozambique

Typical Working Hours per Week:

The typical work week in Mozambique consists of 48 hours per week, or eight hours a day. The daily working hours can be extended to nine hours per day, but in this case the employee must be given an extra half day of rest for the week. 

It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!

Overtime Laws:

Overtime in Mozambique is only permitted when employers are faced with a workload that doesn’t justify recruiting fixed-term employees. Overtime is limited to a maximum of eight hours per week, 96 hours a quarter, or 200 hours a year. 

Additionally, the pay rate increases for overtime. If the overtime work occurs before 8pm, employees are entitled to 1.5 times their normal rate of pay; if the overtime occurs between 8pm and the start of the next day’s normal working hours, the employee is entitled to two times their normal rate of pay. 

Overtime laws in Mozambique are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.

Mozambique

Public Holidays & Vacation Time in Mozambique

Standard Public Holidays in Mozambique

Employees are entitled to take 10 Public holidays per year. 

  • New Year's Day
  • Heroes' Day
  • Women's Day
  • Workers' Day
  • Independence Day
  • Lusaka Peace Agreement Day
  • Armed Forces Day
  • Peace and National Reconciliation Day (over 2 days)
  • Family Day

Vacation Time in Mozambique

During their first year of employment with an organization, employees in Mozambique accrue annual paid leave at a rate of one working day per month worked. This doubles to two working days per month in their second year. From the third year onward, employees are entitled to 30 working days of leave per year.

Mozambique

Types of Leave in Mozambique

Sick Leave:

The Mozambican Labour Law doesn’t provide for sick leave; however, sick leave is considered a justified absence if the employee can provide a medical certificate. 

Employers aren’t required to pay for sick days, although they can choose to do so within their own internal policies. Employees can get compensation for their time out of work due to illness through the National Social Security Institute. 

Maternity Leave:

Mozambique’s maternity leave regulations include 60 consecutive days, all of which are paid at 100%. The National Social Security Institute pays 100% of this cost, although the employer has the option to pay for this or supplement it. 

Paternity Leave:

Paternity leave in Mozambique entitles fathers to one day of paid leave for each two years of service. 

Unpaid Childcare Leave:

  • 30 days for explained absences per year, which can be used for things like hospitalization of a child.
  • Unpaid leave to be with hospitalized children under their care, such leave may be reimbursed by social security

Other Types of Leave:

Employees in Mozambique may also be entitled to: 

  • Shared parental leave
  • Carers leave
  • Specific provisions for parents of disabled children
  • Funeral leave
  • Wedding leave.
Mozambique

Health Insurance & Supplementary Benefits in Mozambique

We believe that remote employees should be able to access their local benefits, as well as high-standard international benefits, wherever they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Mozambique

Termination & Severance in Mozambique

Severance:

Severance pay in Mozambique depends on the circumstances of the termination and the employee’s contract type. 

For fixed-term contract employees who are terminated prior to their contract ending, but after the probationary period, the severance pay must be equal to the pay they would have received between the date of termination and the contract’s expiration date. 

For indefinite-term contracts, severance is dependent on the salary received by the employee. Please contact us for specific details about severance the required severance pay for ITC employees in Mozambique.

Notice of Termination:

A notice of termination is required in Mozambique. During the probationary period, a notice of seven days must be given. For both ITC and FTC employees, just cause terminations require a notice of 30 days. 

Unprotected and Protected Termination:

Mozambique law protects employees from illegal termination of employment, and as there are a range of reasons an employee can be terminated, it’s important for those looking to employ in Mozambique to reach out to us directly with questions.

Protected Classes of Employees:

Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination, are highly complex and there can be a number of situation-specific variables. If you have questions about protected classes in Mozambique, please reach out to us directly to discuss.

Mozambique

Grow Your Global Team. 

Employ the Best Talent, Anywhere in the World

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Mozambique are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We’re here to help you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team. Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.

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