Hire in Mozambique

EOR in Mozambique

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Mozambique, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Mozambique ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Mozambique and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Mozambique

The Labor Act is administered by the Ministry of Labor and Social Security.

Employment contracts in Mozambique

As you look to hire employees in Mozambique, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The maximum workweek is 48 hours per week and eight hours per day. All employees are entitled to a weekly rest period of at least 24 consecutive hours on a day that normally is Sunday.

Work performed over and above the normal daily working hours is considered overtime. Employee may not work more than 200 hours of overtime per year.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• There is no single minimum wage in Mozambique. Still, numerous industry sectors have a nationally mandated minimum monthly salary, or at least one subsector with its own nationally mandated minimum wage, or a generally applicable sector rate and at least one subsector rate that is nationally mandated.
• Effective August 1, 2021, Mozambique’s industry-sector monthly minimum wages are:
• Effective April 1, 2019, to July 31, 2021, Mozambique’s industry-sector monthly minimum wages are:
• Whenever a public holiday falls on a Sunday, work is suspended on the following Monday.

As your employer of record in Mozambique, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Mozambique does not mandate employers to provide bonus payments to employees.

Termination and severance

Employers may break a working contract with just cause with the following notice: 15 days where the period of service is greater than six months but not more than three years; 30 days of notice if the employee is paid monthly. Just cause termination payments are not taxed.

Severance pay is calculated based on employee salary and years of service and averages:

• One year of service: 2.2 salary weeks
• Five years of service: 32.5 salary weeks
• 10 years of service: 65 salary weeks.

Employee benefits and paid leave in Mozambique

When negotiating terms of an employment contract with a candidate in Mozambique, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Employers must provide women with at least 60 consecutive days off, which may commence 20 days before the expected delivery date.

Vacation

Employees are entitled to the following periods of paid annual leave:

• One day for every month of actual service, during the first year of service
• Two days for every month of actual service, during the second year of service
• Thirty days for every year of actual service, from the third year onward.

Holidays

The public holidays in Mozambique are:

• New Year’s Day
• Mozambican Heroes’ Day
• Mozambican Women’s Day
• International Workers’ Day
• Mozambique’s Independence Day
• Lusaka Agreement’s Day
• Mozambique Armed Forces’ Day
• Peace Day
• Family Day.

Health coverage

Social security in Mozambique covers all employees, including resident foreign workers who are not covered by a system of social security in another country.

Employers must pay 4% of an employee’s monthly salary while employees must contribute 3% of the monthly salary. Employers are required to withhold employee contributions.

Additional benefits

In addition to healthcare benefits, employees in Mozambique are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Mozambique, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: August 27, 2024

Employee onboarding with an employer of record in Mozambique

We write and validate all local employment contracts, streamlining the onboarding process for you and your Mozambican employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Mozambique, we will:

• Schedule a welcome call to discuss HR and employment information for Mozambique, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Mozambique employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Mozambique. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.