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Expand your global workforce in Mozambique

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

Talent overview

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:

Artificial Intelligence, Advertising, Translator, Cloud development

Top local universities in Mozambique

Mozambique Uni1

University of Eduardo Mondlane

Ranking

Room: 1

World: 3461

Mozambique Uni2

University of Pedagogica

Ranking

Rooms: 2

World: 6578

Mozambique Uni3

Catholic University of Mozambique

Ranking

Rooms: 3

World: 8269

Mozambique Uni4

University of Lurio

Ranking

Rooms: 4

World: 10123

Mozambique Uni5

University of Zambezi

Ranking

Rooms: 5

World: 10393

Top Local Job Boards:

Profdir , Jobisland

Number of LinkedIn users:

476,800

Top Recruitment Agencies:

JP Recruitment EI , Cserve Corporate Services , Global Edge Consultants

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

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

Employ in Mozambique

Employing in Mozambique

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.

Public and Provincial Holidays 2023

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

Employee Leaves

Type of Leave Time Period Mandatory
Annual leaves
  • 1 day in the first year of service
  • 2 days in the second year of service
  • 30 days after three years of service
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 in

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Payroll cycle

 Mozambique follows a monthly payroll cycle.

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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.

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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.

Read more

How taxes work

Employer Payroll Tax:

Contribution Tax
Social security 4%

Employee Payroll Tax:

Contribution Tax
Social security 3%

Employee Income Tax:

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%

VAT:

The standard rate of Value Added Tax in Mozambique is 17%.

Bonus

13th Month Pay:

It is mandatory to provide 13th-month pay to employees in Mozambique.

Employee Benefits:

  • Paid leaves
  • Maternity leaves
  • Social security

Employee offboarding

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
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Visa and
immigration

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:

  • Employment letter
  • Letter from employer assuring that the employee will stay in Mozambique
  • Health certificate
  • Work permit
  • Guarantee to repatriate the foreign citizens eventually

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.

Read more

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