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Africa

Mozambique

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Employer of Record (EOR) in Mozambique

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Mozambique Introduction

Mozambique is a country in southeastern Africa, bordered by Tanzania, Malawi, Zambia, Zimbabwe, Eswatini, and South Africa. The country has rich and extensive natural resources, and an economy based largely on fishery and agriculture. While Portuguese is Mozambique's official language, it is usually spoken in urban areas and by the younger population, and the country has many native languages.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 60 days of paid maternity leave, which can start 20 days before the baby’s due date. The leave is paid for by social security, and can be as high as 100% of the salary if the employee has made at least 12 months of contributions to social security. Fathers are entitled to 1 day of paid paternity leave every 2 years.

Sick Leave

Employees are entitled to 15 days of paid sick leave each year (up to 5 non-consecutive days per quarter). After a 3-day waiting period, employees receive 70% of their average daily wages.

Paid Leave

There are 10 public holidays in Mozambique, and employees each receive 1 day of paid leave for each month worked at their company (with the number of days increasing each year).

Wage Requirements and Working Hours

The minimum wage in Mozambique varies by sector, but is around MZN 8,000 per month. The standard workweek is 48 hours at 8 hours per day, but work hour restrictions don’t apply to people in positions of leadership, trust, management, or supervision.

Employees can work overtime hours up to 200 hours per year, paid at between 150%-200% of the regular salary.

Termination Process

Process

An employer can terminate an employment contract as long as they provide notice and compensation (if applicable).

Notice Period

The standard notice period is 30 days.

Severance Pay

Employees can receive compensation equal to 45 days of wages for each year of work at the company (or the wages due at the end of a fixed-term contract).

Additional Information

N/A

OVERVIEW
Language(s):
Portuguese
Currency:
Mozambican Metical (MZN)
Capital City:
Maputo
Population:
33.1 Million
Cost of Living Rank:
N/A
VAT (Valued Added Tax):
17%
Employer TaxES
4%
(estimated)

★  4% - Social Security

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Mozambique

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Mozambique get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Mozambique are paid on time in Mozambican Metical (MZN). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Mozambique, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.