Mozambique

Employer of Record (EOR) in Mozambique

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Mozambique . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Mozambique.

Employer of Record people
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Currency
Mozambican Metical
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Capital
Maputo
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Region
Africa
Megaphone
Language
Portuguese
Hire remote employees
Population
31255435
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GDP
$12.65 billion
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GDP growth
0.0374
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Ease of doing business
55
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World GDP share
0.0002

1. Grow your team in Mozambique with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Mozambique, formally the Republic of Mozambique, is a nation in Southeastern Africa bordered to the east by the Indian Ocean, to the north by Tanzania, to the northwest by Malawi and Zambia, to the west by Zimbabwe, and to the southwest by Eswatini (Swaziland) and South Africa. The Mozambique Channel separates the country from the Comoros, Mayotte, and Madagascar to the east. Maputo (known as Lourenço Marques from 1876 to 1976) is Mozambique's capital and biggest city.

Bantu-speaking peoples moved to present-day Mozambique from the north and west between the first and fifth century AD. Northern Mozambique is influenced by the Indian Ocean's monsoon trade winds. A succession of Swahili port cities grew there during the 7th and 11th centuries, contributing to the creation of a unique Swahili culture and language. Traders from Somalia, Ethiopia, Egypt, Arabia, Persia, and India visited these places in the late medieval era.

Vasco da Gama's journey in 1498 signaled the entry of the Portuguese, who started a long process of colonization and settlement in 1505. Mozambique obtained independence in 1975, after more than four centuries of Portuguese control, and soon became the People's Republic of Mozambique. After barely two years of independence, the nation went into a lengthy civil war that lasted from 1977 to 1992. Mozambique conducted its first multiparty elections in 1994 and has since been a largely stable presidential republic, albeit facing a low-intensity insurgency.

Mozambique is blessed with abundant natural resources. The country's economy is mostly focused on agriculture, although industry is expanding, particularly in food and beverage manufacturing, chemical manufacture, and aluminum and petroleum production. The tourist industry is also growing. Mozambique's largest commercial relationship and source of foreign direct investment is South Africa, although Belgium, Brazil, Portugal, and Spain are also key economic partners. Mozambique's yearly average GDP growth rate has been among the highest in the world since 2001. However, the nation remains one of the world's poorest and most undeveloped, ranking low in GDP per capita, human development, inequality indicators, and average life expectancy.

Mozambique's single official language is Portuguese, which is generally spoken as a second language by nearly half of the population. Tsonga, Makhuwa, Sena, and Swahili are common native languages. The country's population of around 29 million people is largely Bantu. Mozambique's dominant religion is Christianity, with considerable minority practicing Islam and African traditional faiths. Mozambique is a member of the United Nations, the African Union, the Commonwealth of Nations, the Organization of Islamic Cooperation, the Community of Portuguese-Speaking Countries, the Non-Aligned Movement, the Southern African Development Community, and La Francophonie.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Mozambique is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

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 Day

Heroes’ Day

Women’s Day

Independence Day

Lusaka Peace Agreement Day

Armed Forces Day

Peace and National Reconciliation Day

Family 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

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the minimum wage for this country.

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.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Corporate entities and other entities having headquarters or effective administration in Mozambique (i.e. resident entities) are liable to CIT on their global revenue. Corporate companies and other entities that do not have their headquarters or a permanent establishment (PE) in Mozambique (i.e. non-resident entities) are solely liable to CIT on revenue generated in Mozambique.

CIT is charged at a rate of 32% on taxable earnings, which are defined as accounting profits modified to conform with tax law requirements. Non-resident entities that do not have a PE in Mozambique are solely liable to withholding tax (WHT) on income generated in Mozambique.

Individual income tax

Residents' global income is taxed. Non-residents must pay tax on income earned in Mozambique. Individual income (employment income, capital gains, investment income, independent labor, rental income, commissions, and so on) is taxed at the rates shown below.

For an annual income between MZN 0 and MZN 42,000, the tax rate is set at 10 percent.

For an annual income between MZN 42,000 and MZN 168,000, the tax rate is set at 15 percent.

For an annual income between MZN 168,000 and MZN 504,000, the tax rate is set at 20 percent.

For an annual income between MZN 504,000 and MZN 1,512,000, the tax rate is set at 25 percent.

For an annual income beyond MZN 1,512,000, the tax rate is set at 32 percent.

The earned income tax is withheld and paid by the employer or other payer at a fixed flat rate of 20% for non-Mozambican citizens (in the majority of the income received).

VAT, GST and sales tax

VAT is levied on the sale of the majority of products and services, as well as imports. The standard rate is 17.5%. VAT is typically recoverable by corporate organizations, with the exception of those involved in specific commercial activities (e.g. financial and insurance operations, leasing [exemption with restrictions], sale of immovable property, some exempt activities).

10. VISA and work permits

There is no information about VISA and work permits for this country.

The Mozambique Visa Policy consists of the rules and regulations that nationals from all countries who want to visit Mozambique, regardless of the reason of their visit, must follow in order to be given permission to enter the country. To enter the nation, they must have a valid visa. In layman's terms, a visa is a legal document that allows a person to enter, reside in, and leave a country. A visa is often stamped or attached to a traveler's passport.

The Mozambique Visa Policy is followed by all persons from all over the world who want to enter the nation for whatever reason. To enter the nation, a person must obtain a visa, otherwise his or her admission would be rejected. This restriction, however, only applies to 11 nations.

The Mozambique Visa Policy criteria vary depending on the individual and their nationality. To get a legitimate visa, they must follow all of the regulations of the Mozambique Visa Policy. The standards and restrictions vary depending on circumstances such as the visitor's length of stay and the purpose of their visit to Mozambique.

There are many sorts of visas available depending on the purpose of their visit to Mozambique. Diplomatic visas, tourist visas, business visas, work visas, visit visas, courtesy visas, official visas, resident visas, and student visas are the many sorts of visas.

According to the Mozambique Visa Policy, a person must get their visa via the Mozambique Embassy in their country or through an online application. The good news is that Mozambique has just implemented a Visa on Arrival system that is open to citizens of all nations. Nationalists who do not get their visa in any of the above methods may be denied entry into the nation entirely.

At the present, only 11 countries are exempt from requiring a visa to enter Mozambique. Angola, Namibia, Botswana, South Africa, Cabo Verde, Tanzania, Eswatini, Malawi, Mauritius, Zambia, and Zimbabwe are among them. Citizens of these countries may visit Mozambique and stay for up to three months.

Citizens of six nations must get a visa before entering the country. India, Pakistan, Bangladesh, Eritrea, Somalia, and Sri Lanka are among them. If they do not have a visa, they may get one upon arrival. They must provide documentation that they applied for a visa prior to their travel but did not get one in time.

Visitors visiting Mozambique for tourist or business must get a visa, which varies based on the country of origin. There are three ways for a person to get a visa. A visa for Mozambique may be acquired by completing an eVisa application form, applying for a visa at the Mozambique Embassy in their country, or obtaining a VOA, or Visa On Arrival.

Travelers with a tourist visa as well as a business visa for admission into Mozambique will be limited to a 30-day stay. Any of the passengers are not eligible for an extension. However, a tourist visa holder is permitted to enter the nation twice, whilst a business visa holder is only permitted to enter the country once. If for any reason the traveler fails to leave Mozambique after their legal duration of stay, a fine will be charged by the country every day till the traveler leaves the country. This restriction is enforced in accordance with the Mozambique Visa Policy.

Travelers need to follow various rules and steps to receive a visa either online, offline, or on arrival. According to the Mozambique Visa Policy, if they fail to do so, they might be rejected from entering the country of Mozambique.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Individual employment contracts in Mozambique must be in writing and must define the employee and employer, working hours, workplace, length, renewal conditions, wage data, the date the contract starts, the term date, and signatures.

A fixed-term contract's duration must be documented in writing. Contracts that do not specify a period will be viewed as indefinite term contracts, even if the employer establishes that the activity is brief. Fixed-term contracts may last up to two years and can be renewed twice by consent of the parties.

With Rivermate being your Employer of Record (EoR) in Mozambique, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

For middle- and upper-level technicians, as well as leadership and management jobs, the maximum trial time for indefinite-term contracts is 180 days. The maximum probation term for other workers is 90 days.

Payment currency

Mozambican Metical

13.Opening a subsidiary in Mozambique

There is no information about the working hours for this country.

How to set up a subsidiary

When discussing how to set up a Mozambique subsidiary, we suggest focusing on two factors: location and structure. Different cities and areas might have their own incorporation laws, expenses, and availability. Before deciding on a physical office space, you should do study about the region where you wish to incorporate, or engage with a consultant who can assist you.

Mozambique provides a variety of formats for businesses wishing to develop in the nation. You may establish a limited liability company (LLC), a public limited company (SA), a branch office, or a representative office. Each corporation has its own set of Mozambique subsidiary regulations and perks, so it's critical to analyze your business objectives and company structures to make the best selection.

Many businesses choose to establish as an LLC because of the advantages it provides to both the subsidiary and the parent company. The following stages are included in the Mozambique subsidiary establishment procedure for an LLC:

1. Obtaining a certificate of your distinct name from the Legal Entities Registrar

2. Signing the Articles of Association in front of a notary

3. Opening a temporary bank account and paying registration costs

4. Registering with the Legal Entities of Mozambique Maputo's Registrar

5. Requesting a certificate from a commercial registry

6. Publication of corporate statutes in the official gazette

7. Getting a NUIT and registering for taxes

8. Applying for a streamlined operating license via Maputo's One-Stop Shop

9. Notifying the tax department of the commencement of your business activity

10. Adding your job applicants to the provincial employment center

11. Enrolling all of your staff in the social security system

Subsidiary laws

Mozambique's subsidiary laws varies depending on whatever entity you pick. Limited liability businesses have their own set of regulations governing its initial capital, structure, and other aspects. At least one director and one shareholder of any nationality are required. These employees are not required to reside in Mozambique while working for your organization.

If your firm hires a foreign director, they will need a personal tax identification number but will not be required to submit tax returns until they reside in the nation. After you've incorporated, you'll need to engage a local accountant to submit your monthly VAT reports with the Mozambique Tax Office.

Although there are no minimum capital requirements for LLCs, the company's share capital will be split into quotas. Every quota is nominal and is denominated in the local currency. The obligation of quota holders is restricted to the amount for which they have subscribed.

13. Why choose Rivermate as your Employer of Record / PEO in Mozambique

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 (EOR) 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 (EOR) / PEO solution.

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