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Your guide to the employment landscape, working customs and local labor laws in Mozambique
Capital
Maputo
Currency
Mozambican metical
Languages
Portuguese, Makhuwa, Changana
GDP per Capita
$580.73
Employer Tax
4%
Payroll Frequency
Monthly
Mozambique is an East African country whose economy relies heavily on agriculture and industrial sectors. The nation had a GDP of USD 16.10 billion in December 2021 and recorded a growth of 4.1% in Q1FY22. The country ranks 138 in the World Bank’s Ease of Doing Business Index and is the 153rd lowest economy per Heritage Foundation’s 2021 Index.
Major economic hubs:
Maputo, Beira, Nampula
Skills in demand:
Room: 1
World: 3461
Rooms: 2
World: 6578
Rooms: 3
World: 8269
Rooms: 4
World: 10123
Rooms: 5
World: 10393
476,800
JP Recruitment EI , Cserve Corporate Services , Global Edge Consultants
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Some common jobs in Mozambique with average monthly salary are:
Job Title | Average Monthly Salary (MZN) | Average Monthly Salary (USD) |
Financial Manager | MZN77,500 | $1212 |
general manager | MZN72,600 | $1136 |
Business Development Manager | MZN60,000 | $939 |
Financial Analyst | MZN49,000 | $766 |
Business Analyst | MZN50,100 | $784 |
Project Manager | MZN43,700 | $683 |
The Labor Law in Mozambique regulates all employment relationships in the country. Both employers and employees must align with the rules mentioned in the Labor Law to avoid hefty fines and punishment.
Employee Contract: Mozambique laws mandate both temporary and permanent employment agreements to be in written form and include important details like identification of both parties, location of work, compensation amount, date of commencement, expiration of contract, and employee benefits.
Probation Period: The probation period in Mozambique is 90 days for general employees and 180 days for mid and senior-level employees.
Date | Name | Type |
1 Jan | New Year | Public Holiday |
3 Feb | Mozambican Heroes Day | Public Holiday |
7 Apr | Mozambican Woman’s Day | Public Holiday |
1 May | May Day | Public Holiday |
25 Jun | Independence Day | Public Holiday |
7 Sep | Victory Day | Public Holiday |
25 Sep | Armed Forces Day | Public Holiday |
4 Oct | Peace and Reconciliation Day | Public Holiday |
25 Dec | Family Day | Public Holiday |
Type of Leave | Time Period | Mandatory |
Annual leaves |
|
Yes |
Sick leaves | No statutory provision. 15 days consecutively, or 5 non-consecutive days each quarter | Yes |
Maternity leaves | 90 days (20 days before birth and 60 days after birth) | Yes |
Leave Compliance
Payroll cycle
Mozambique follows a monthly payroll cycle.
Minimum wage
The minimum wage in Mozambique varies in different industries. The lowest minimum wage is MZN 4,591.58 in kapenta fishing, while the highest is MZN 14,340.85 in financial services.
Overtime pay
The standard working hours in Mozambique are 8 hours per day and 48 hours per week. However, employees are permitted to work overtime only for excessive workload or material reasons. The overtime duration cannot exceed 8 hours per week, 96 hours per quarter, and 200 hours per year.
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Contribution | Tax |
Social security | 4% |
Contribution | Tax |
Social security | 3% |
Income slab (in MZN) | Tax (in %) |
0 MZN – 42,000 MZN | 10% |
42,001 MZN – 168,000 MZN | 15% |
168,001 MZN – 504,000 MZN | 20% |
504,001 MZN – 1,512,000 MZN | 25% |
More than 1,512,000 MZN | 32% |
The standard rate of Value Added Tax in Mozambique is 17%.
It is mandatory to provide 13th-month pay to employees in Mozambique.
Employees can terminate the employment contracts in the event of contract expiry, mutual agreement, denunciation by both parties, or cancellation by either party due to a justified cause.
The termination agreement must be published in writing and signed by both parties. The agreement must include the date of termination, severance pay (if necessary), and notice period. The employee must submit a request for contract termination seven days before their proposed termination date.
If employed for a year or more, employees in Mozambique must serve a notice period of 30 days.
The severance pay for fixed-term employees who are terminated before their contract ends but have completed their probationary period amounts to the regular pay between the date of termination and the date of contract expiration.
Employees with an indefinite contract are liable to severance pay depending on their wages:
Wage of the employee | Severance pay |
1 – 7 times the national minimum wage | 30 days’ regular pay for each year of service |
8 – 10 times the national minimum wage | 15 days’ regular pay for each year of service |
11 – 16 times the national minimum wage | 10 days’ regular pay for each year of service |
More than 16 times the national minimum wage | 3 days’ regular pay for each year of service |
Foreign nationals willing to work in Mozambique require a work permit. The permit must be used within 60 days of issuance to ensure compliance.
To get a work visa, an employee must present the following documents:
As per the rules, the applicant must be present for the visa application. However, a foreigner’s employer can apply for the visa on their behalf when the employee is working on extractive industry projects.
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Overtime Pay
Minimum Wage
Overtime Pay
The overtime pay varies according to the following table:
Time of overtime work | Rate of pay |
Until 8 PM | 150% of the regular pay |
8 PM – Start of the normal working hours of the following day | 200% of the regular pay |
Night work | 125% of the regular pay |
The overtime pay for exceptional work amounts to 200% of the regular pay.
Visa and Immigration
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