* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Maputo
Currency

Mozambican metical (MT)

Timezone

CAT (GMT +2)

Payroll
Monthly
Employment Cost

4%

Annual Leave

12 days

In-demand Specialties*
Project And Data Management, Data Analysis, Accounting

The Ultimate Guide to Hiring Employees in Mozambique

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Mozambique-guide

Key Considerations Before Hiring In Mozambique

Employing in Mozambique requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Mozambique with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Mozambique quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Mozambique has a diverse pool of talent with skills in various industries, including IT, finance, customer service, and more.

The cost of living in Mozambique is generally lower compared to many Western countries. This can result in cost savings for your organization when hiring remote employees, as you may be able to access highly skilled professionals at a more competitive rate.

Mozambique is in a time zone that allows for overlapping working hours with Europe and parts of the Americas. This can enhance collabouration and communication between remote teams, leading to increased productivity.

Mozambique is known for its rich cultural diversity. Hiring employees from Mozambique can contribute to a multicultural work environment, fostering creativity and innovation through the integration of different perspectives.

playroll-good-to-know

Fundamental Aspects of Employment in Mozambique

In Mozambique, the Labour Law oversees all work relationships. Employment contracts, whether temporary or permanent, must be in writing and include key details like:

  • Identification of Parties
  • Compensation
  • Date of Commencement
  • Expiration of Contract

Probationary Period in Mozambique

The probation period is 180 days for mid-level and senior technicians, as well as individuals in leadership and management roles. For all other employees, the probationary period is set at 90 days.

Working hours in Mozambique

A standard work schedule consists of 8 hours per day and should not exceed 48 hours per week.

Overtime in Mozambique

Any work conducted beyond the regular daily working hours is classified as overtime. A maximum of 200 overtime hours per year is allowed, and compensation must be provided at an extra rate of 50% per hour until 8 pm, and 100% thereafter.

Navigating Key Aspects of Payroll in Mozambique

Mozambique has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

July 1 - June 30

Fiscal Year in Mozambique

July 1 - June 30 is the 12-month accounting period that businesses in Mozambique use for financial and tax reporting purposes.
monthly

Payroll Cycle in Mozambique

The payroll cycle in Mozambique is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Mozambique

Minimum wages and salaries in Mozambique

In Mozambique, there isn't a universal minimum wage. Instead, various industry sectors have their own monthly minimum wages mandated at the national level. Some sectors may have subsectors with specific minimum wages, while others might follow a generally applicable sector rate alongside at least one subsector rate that is nationally mandated.

Bonus Payments in Mozambique

In Mozambique, there is no requirement for employers to offer bonus payments to their employees.

Comprehensive Overview of Employment Taxes in Mozambique

Understanding the tax obligations for both employers and employees is crucial when operating in Mozambique's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Mozambique.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 4% on top of the employee salary in Mozambique.

Tax Type Tax Rate

Employee Payroll Tax Contributions

In Mozambique, the typical estimation for employee payroll contributions cost is around 3%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income tax rates in Mozambique follow a progressive scale, ranging from 10% to 32%. The national personal income tax rates are determined based on specific brackets, each with its minimum and maximum amounts of annual income as follows:

Tax Rate Income Bracket

Pension in Mozambique

Women can apply for a pension at 55, and men at 60. To qualify, employees need 20 years of social security enrollment with at least 10 years of contributions. Alternatively, regardless of age, employees qualify for a pension after 30 years of enrollment or 25 years of contributions (300 months).

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Mozambique tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Mozambique

When it comes to terminating employment in Mozambique, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Employee terminations are governed by specific procedures. To terminate an employee for just cause, employers must provide a written indictment note to both the employee and the trade union. Unlike some jurisdictions with at-will termination practices, Mozambique's termination process is contingent on the existence of valid reasons for dismissal.

Notice Period

During the probationary period, a one-week notice is required for termination. After successfully completing the probationary period, the notice period extends to one month for subsequent terminations.

Severance Pay

Employees in Mozambique are entitled to severance pay based on the nature of termination. The severance amount can be up to 30 days' worth of pay for each year of service

Annual Leave Entitlements and Company Policies in Mozambique

The annual leave entitlement in Mozambique is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Mozambique

The Mozambican government acknowledges nine public holidays. On these days, employers are required to grant paid leave to employees. The public holidays are:

Holiday Date

Paid Time Off in Mozambique

Maternity Leave in Mozambique

Paternity Leave in Mozambique

Sick Leave in Mozambique

Bereavement Leave

Marriage Leave

Parental Leave In Mozambique

Mozambique's Benefits Built Into Playroll

Competitive benefits package in Mozambique

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Mozambique's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Mozambique

Make your benefits package in Mozambique a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Private Medical Insurance
  • Background Checks

Statutory benefits for employment in Mozambique

Mozambique's statutory benefits are categorized into three levels: Basic Social Security, Mandatory Social Security, and Complementary Social Security. These include various benefits such as:

  • Old age pension
  • Disability pension
  • Survivors pension
  • Death grants
  • Funeral allowances

Playroll allows you to provide localized benefits for employees in Mozambique within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Mozambique create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Mozambique

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Mozambique.

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!