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Expand your Global Workforce to Mozambique

Mozambique 2
POPULATION

34,630,000

LANGUAGES

Portuguese

COUNTRY CAPITAL

Maputo

CURRENCY

MZN

Mozambique 1

A Glance at Mozambique

Mozambique is a country located on the Southeastern coast of Africa, characterized by a long coastline along the Indian Ocean. The country has a population of 34.63 million and a GDP of $22.42 billion as of 2024. The capital city, Maputo, is located near the southern end of the country and is the largest city in Mozambique. Portuguese is the country’s official language. Other languages spoken in Mozambique include Makhuwa, Changana, Nyanja, Ndau, and Sena. The Metical is Mozambique’s currency, and 1 USD is equivalent to 63.90 Metical (MZN).

10

Holidays Per Year

48 hrs per week

Working hours

Compensation & Benefits in Mozambique

MZN 12,790

Average wage per month

3-4 weeks

Annual vacation leave (min)

Talent Grid Africa acts as a legal employer if you want to expand your business operations into Mozambique. We take on primary responsibilities, such as HR and Payroll outsourcing, to ensure you can focus on growth. Our EOR services in Mozambique enable you to hire workers without the need to establish a local legal entity in the country.

Payroll Taxes in Mozambique

Employers and employees in Mozambique are required to contribute to the National Social Security Institute (INSS). Employers contribute 4% of the employee’s gross salary, while the employee contributes 3% of their gross salary (withheld at source). Every employee must withhold and remit taxes in accordance with the progressive tax brackets established by the government.

Mozambique’s employment law is governed by its Labor Law, which has seen significant amendments in 2023 and 2025. The Labor Law is enforced by the Ministry of Labor, Employment, and Social Security (MITESS). Mozambique’s labor law aims to strike a balance between worker protections and the flexibility businesses need to thrive in the country. Non-compliance can lead to fines, legal delays, and reputational damage. Here is an overview of the Labor Law. 

  • Employment Contracts. Mozambique has two types of contracts: fixed-term and open-ended contracts. The fixed-term contract is ideal for temporary projects or seasonal work that lasts no more than two years. Open-ended contracts are the most common and offer employees greater job security and protection. The probation period is typically 90 days for most roles and 180 days for positions of greater complexity or trust. 
  • Working Hours. A standard workweek consists of 48 hours, divided into eight hours per day. Employees are entitled to at least one rest day per week, usually on Sunday. Any work beyond these hours is considered overtime and is compensated at a rate of 50% above normal pay and 100% for overtime on holidays or weekends. 
  • Minimum Wage. The minimum wage in Mozambique ranges from MZN 4,941.68 to MZN 17,881.32 as of 2024, depending on the sector. 
  • Leave Entitlement. Employees are entitled to 30 days of paid annual leave, 15 days of sick leave per year, 60 consecutive days of maternity leave, and one day of paternity leave.
  • Termination: The termination procedure depends on the reason. Just cause, like misconduct, requires documentation and a formal process. Redundancy requires notification to MITESS and negotiation with unions.
  • Talent Grid Africa enables you to invest in Mozambique without establishing a legal entity. 
  • We offer fast onboarding, ensuring your employees start working within 24 hours. 
  • We handle work permits, visas, and other onboarding documents in line with Mozambique’s employment, migration, and labor laws. 
  • We manage payroll processing on your behalf, ensuring your employees are paid on time and per the tax and employment regulations. 
  • You can have peace of mind knowing your business is protected from tax and compliance issues.

 

Frequently Asked Questions

Talent Grid Africa acts as a legal employer, managing HR, payroll, compliance, and employment risks for businesses expanding into Mozambique.

No, with our EOR services, you can hire employees in Mozambique without establishing a local legal entity.

The standard workweek is 48 hours, usually eight hours per day, with overtime paid at 50% extra on weekdays and 100% on holidays or weekends.

Employees receive 30 days of annual leave, 15 days of sick leave, 60 days of maternity leave, and one day of paternity leave.

Employers contribute 4% of the employee’s gross salary to INSS, while employees contribute 3%, withheld at the source.