Mozambique Employment Guide
Mozambique Employment Guide
Mozambique, located in southeastern Africa along the Indian Ocean, has a population of over 30 million. Its economy is based on natural gas, agriculture, mining, and growing infrastructure projects, with foreign investment playing a key role. Employment is governed by the Labor Law of Mozambique, which regulates employment contracts, minimum wage (varying by sector), working hours, leave entitlements, and mandatory social security contributions. Employers must formalize contracts in writing and ensure compliance with tax and labor authorities. Dismissals require just cause and adherence to due process.
Check recruitment costs
Currency
Mozambican metical (MZN)
Capital
Maputo
Official language
Portuguese
Salary Cycle
Monthly
Our Employment Guide in Mozambique
Browse the following tags to learn all about hiring employees in Mozambique
Minimum Wage Regulations in Mozambique
Mozambique establishes sector-specific minimum wage requirements. For industries similar to SailGlobal's operations, the current minimum wage stands at 16,061.32 Meticais per month.
Personal Income Tax Structure
Mozambique employs a progressive tax system ranging from 10% to 32% based on annual income brackets.
| Annual Income Range (Meticais) | Tax Rate |
|---|---|
| 0 - 42,000 | 10% |
| 42,001 - 168,000 | 15% |
| 168,001 - 504,000 | 20% |
| 504,001 - 1,512,000 | 25% |
| Above 1,512,000 | 32% |
Employer Contribution Requirements
Companies operating in Mozambique typically incur additional costs equivalent to approximately 5% of employee salaries.
- Social Security Contributions: 4%
- Work Injury Insurance: 1%
Working Hours and Overtime Compensation
The standard work schedule consists of 8 hours daily and 40 hours weekly, typically Monday through Friday.
Overtime compensation is mandatory under Mozambican law. Employees may work up to 96 hours of overtime per quarter, with weekly and annual limits of 8 hours and 200 hours respectively. Overtime rates vary by time period:
- Between 5:00 PM and 8:00 PM: 150% of regular hourly rate
- After 8:00 PM: 200% of regular hourly rate
Practical Considerations for International Employers
Companies like SailGlobal should note that Mozambique's labor regulations require meticulous record-keeping for overtime hours. A recent case involving a manufacturing company highlighted the importance of maintaining accurate timesheets to avoid compliance issues during labor inspections.
Hire easily in Mozambique
Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now
Cost Calculator
Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.
USD