Guide to employment, payroll and benefits in

Mozambique

Rivermate offers complete payroll, benefits and compliance services for

Mozambique

01. Overview

Last updated: 

August 19, 2021

Currency
Mozambican Metical
Capital
Maputo
Ease of doing business
55
Language
Portuguese
Population
31255435
GDP growth
3.74%

02. Grow your team in

Mozambique

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Mozambique

, particularly if you don't have established local relationships. You can hire employees in

Mozambique

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Mozambique, formally the Republic of Mozambique, is a country in Southeast Africa bordered on the east by the Indian Ocean, on the north by Tanzania, on the northwest by Malawi and Zambia, on the west by Zimbabwe, and on the southwest by Eswatini and South Africa. The Mozambique Channel separates the sovereign state from the Comoros, Mayotte, and Madagascar to the east. Maputo is Mozambique's capital and largest city. Bantu-speaking peoples from the north and west migrated to present-day Mozambique between the first and fifth centuries AD. Northern Mozambique is bounded by the Indian Ocean's monsoon trade winds. A series of Swahili port towns grew up there between the 7th and 11th centuries, contributing to the growth of a distinct Swahili culture and language. Traders from Somalia, Ethiopia, Egypt, Arabia, Persia, and India frequented these towns in the late medieval era. Vasco da Gama's voyage in 1498 marked the arrival of the Portuguese, who started a slow phase of colonisation and settlement in 1505. Mozambique achieved independence in 1975, after more than four centuries of Portuguese rule, and became the People's Republic of Mozambique shortly after. The nation plunged into an extreme and prolonged civil war that lasted from 1977 to 1992, after just two years of independence. Mozambique held its first multiparty elections in 1994, and has remained a relatively stable presidential republic since then, despite the presence of a low-intensity insurgency.Mozambique is rich in natural resources. The economy of the country is largely focused on agriculture, but industry, especially food and beverage manufacturing, chemical manufacturing, and aluminum and petroleum production, is expanding. The tourism industry is also growing. Mozambique's key trade partner and source of foreign direct investment is South Africa, but Belgium, Brazil, Portugal, and Spain are also significant economic partners. Mozambique's annual average GDP growth has been among the fastest in the world since 2001. The nation, however, remains one of the poorest and most underdeveloped in the world, with low GDP per capita, human growth, inequality measures, and average life expectancy. Mozambique's only official language is Portuguese, which is mostly spoken as a second language by about half of the population. Makhuwa, Sena, and Swahili are some of the most common native languages. The population of the country, estimated to be about 29 million people, is predominantly Bantu. Christianity is the most common religion in Mozambique, but Islam and African traditional religions are also popular. Mozambique is a member of the United Nations, African Union, Commonwealth of Nations, Organization of Islamic Cooperation, Community of Portuguese Language Countries, Non-Aligned Movement, Southern African Development Community, and La Francophonie.

04. Public holidays

05. Types of leave

Paid time off

Employees receive one day of annual leave for each month of service, with the number of days increasing each year.

Public holidays

New Year’s DayHeroes’ DayWomen’s DayIndependence DayLusaka Peace Agreement DayArmed Forces DayPeace and National Reconciliation DayFamily Day or Christmas Day

Sick days

Employees are entitled to 15 days of paid sick leave in a calendar year or up to five non-consecutive days in a quarter, after which the employer can send the employee to the health board for a determination of his or her capacity to work. Employees may also be eligible for social security benefits in Mozambique. After a three-day waiting period, eligible employees get 70% of their average daily wages for up to 365 days. Employees must have made at least three contributions in the 12 months prior to taking leave to be eligible.

Maternity leave

Female employees are entitled to 60 days of paid maternity leave, which can begin as early as 20 days before the due date. Mozambique's social security system is used to pay benefits. If an employee has made at least 12 months of contributions in the 18 months prior to the estimated due date, they will get 100 percent of their average daily wages.

Paternity leave

Every two years, male employees are entitled to one day of paternity leave, which must be taken the day after the baby is born.

Parental leave

Apart from maternity and paternity leave, there is no parental leave.

Other leave

06. Employment termination

Termination process

Employment contracts can be canceled or expire by mutual consent or by either side (with or without just cause). An employment contract terminates at the end of its specified term, upon completion of work, or upon the employer's or employee's death.


The employer and employee must agree in writing to terminate the work relationship and specify the effective date. Employees may withdraw from an agreement but must do so in writing within seven days and repay any money earned in connection with the arrangement.


Employers have the right to terminate an employee's employment contract for cause. Employers may terminate an indefinite-term contract without cause if necessary to preserve competitiveness due to structural, technological, or market-related factors. The employee may end the employment contract without cause by providing the employer with written notice.

Notice period

The employee must provide at least seven days' notice to the employer. The employer must give the employee or the union 30 days' notice. The employee is also entitled to compensation.

Severance pay

The employee is entitled to compensation equal to 45 days' pay for each year of service or the remainder of the term of a fixed-term contract. Employers must compensate employees for wages earned between the date of termination and the contractual end date under a fixed-term contract.

Probation period

There are no provisions regarding probationary period in the labor laws in Mozambique.

07. Working hours

General

The typical workweek is 48 hours and eight hours every day. Employees may work nine hours a day if their employer provides them with an additional half-day of rest per week. Work hour restrictions do not apply to people in positions of leadership, management, trust, or supervision.


Additionally, the employee is entitled to a rest period of at least 30 minutes but no more than two hours per day. When working a single continuous shift, a minimum of half an hour is required and is counted as actual working time. Additionally, employees have one day off every week, usually on Sunday, for at least twenty-four straight hours.


If work is conducted on a rest day or a public holiday, the employee is entitled to three consecutive days of relaxation. The employee is entitled to a half-day of rest if the labor does not exceed five consecutive or intermittent hours.


Employees who work nights must be rewarded at a rate equal to 125 percent of their regular daytime wage. Except for shift employment, night work occurs between 8:00 p.m. and the start of regular working hours the following day.

Overtime

Employees are permitted to work overtime up to eight hours per day, 96 hours per quarter, or 200 hours per year. Overtime is paid at a rate of 150 percent during the day and 200 percent at night.

08. Minimum wage

General

There is no national minimum wage. Wages are instead negotiated sector by sector. In 2019, the OTM estimated that a minimum wage of 19,600 meticais (297 US dollars at the time) would have been required to provide a basic basket of goods and services for an average household.

09. Employee benefits

General

Mozambique has a public healthcare system, but physicians and nurses are few, particularly in rural regions. The majority of international employers provide private healthcare.

Even if the employee has no relatives in Portugal, several businesses offer a yearly flight there.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Mozambique

to hire a team takes time, money, and effort. The labor law in

Mozambique

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Mozambique

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Mozambique

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Mozambique

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.