Hiring in Mozambique in 2026 requires employers to match each worker to the correct sector minimum wage, apply Mozambique labour law, register and remit INSS social security, and operate compliant payroll and termination processes. A monthly salary figure alone is not enough: the employer's economic activity, the employee's sub-sector, contract duration, working hours, IRPS withholding, leave and immigration status all affect the compliance result.

The principal framework consists of Labour Law No. 13/2023, the eight sector wage instruments published in May 2026, collective labour regulation instruments, National Social Security Institute rules and individual income tax requirements. Chinese companies using a local entity or Employer of Record (EOR) should determine the real employer, activity classification, applicable wage order and work-authorisation route before making an offer or setting a start date.

1. Mozambique Employment Compliance at a Glance in 2026

2. Three Employment and Payroll Changes Requiring Action in 2026

Eight sector minimum-wage instruments

The Official Gazette of 20 May 2026 published Ministerial Diplomas 34/2026–41/2026 for agriculture, fisheries, mineral extraction, manufacturing, utilities, construction, non-financial services and financial services. The instruments state that the adjusted rates produce effects from 1 April 2026. Employers should identify the correct sub-sector and regularise any applicable shortfall.

Labour Law No. 13/2023 remains the operating baseline

The new Labour Law entered into force on 21 February 2024 and repealed Law No. 23/2007. Employers should operate contracts, probation, first-year annual leave, parental leave, disciplinary processes and termination under the new law instead of legacy templates.

Economic-termination exposure changes with sector wages

Economic-termination compensation depends on the employee's basic salary plus seniority bonus as a multiple of the applicable sector minimum wage. A wrong sector classification therefore affects both payroll and termination reserves.

3. Mozambique’s Employment Law and Regulatory Framework

The employer should identify the contractual employer, actual work location, principal activity, sub-sector, occupation and applicable collective agreement before configuring payroll. Special regimes may affect mining, fishing, petroleum, port, rural, private-security, domestic, maritime, remote and agency work.

4. Recruitment, Offers and Onboarding

The offer, contract, registration, payroll start and project date should be consistent. An individual working continuously under company control may be an employee even if the document calls the person a consultant.

5. Employment Contracts, Contract Types and Probation

Probation must be agreed in writing. Even during probation, the employer must observe notice, non-discrimination, salary, accrued leave, INSS, IRPS and final-settlement requirements.

6. Wages, Minimum Wage and Gross-to-Net Payroll

Mozambique has no single private-sector minimum wage. Employers must use the instrument governing the relevant activity and determine whether a special sub-sector rate applies.

The instruments were published on 20 May 2026 and state that they produce effects from 1 April 2026. Employers should review payroll from the applicable date and pay documented corrections where necessary. Existing fixed allowances should not be reduced unilaterally to cancel the statutory increase.

Payslips should separately show basic salary, allowances, overtime, night work, holiday work, bonuses, taxable benefits, INSS, IRPS, deductions and net salary. Mozambique has no universal statutory 13th-month salary for private-sector workers.

7. Working Time, Overtime and Records

Employers should meet applicable consultation, notification and posting requirements when changing schedules. Remote, shift and project employees still require accurate time records. A management title does not automatically remove working-time protections.

8. Public Holidays, Annual Leave and Other Statutory Leave

Annual leave

An employee working from 1 April to 30 September 2026 would provisionally accrue approximately 6 days under the 12-day first-year rule. Final settlement must account for leave taken and the legally applicable pay base.

Family and sickness leave

Maternity leave is 90 consecutive days and may generally start up to 20 days before the expected birth. Paternity leave is generally 7 days beginning on the day after birth. Sickness absence should be supported by medical evidence and administered separately from annual leave under the Labour Law and INSS rules.

2026 national public holidays

An ad hoc tolerância de ponto is not automatically a permanent public holiday. Continuous operations and essential services should follow the formal announcement and exceptional-work rules.

9. Employer Social Security, Mandatory Benefits and Tax

INSS contributions are generally paid between the 20th day of the reference month and the 10th day of the following month. The contribution base should not automatically be limited to basic salary; allowances, benefits and other payments require classification.

Illustrative MT 100,000 payroll

The example excludes IRPS and other employment costs. IRPS must be calculated using the current monthly withholding table and employee-specific information.

10. Local Employees and Foreign Employees

Foreign nationals must obtain work and residence authorisation matching the legal employer, occupation, worksite and actual activity before starting work. An EOR agreement does not replace immigration approval.

Foreign employees working in Mozambique may remain subject to local employment law, sector wages, INSS, IRPS, occupational safety and data requirements even when part of their salary is paid overseas. Housing, vehicles, school fees, travel and bonuses should be reviewed for payroll and tax treatment.

11. Remote Work, Data Privacy and Record Retention

A remote-work agreement should define the workplace, equipment, expenses, working time, availability, information security, monitoring and occupational safety. An international relocation requires a new employment, tax, social-security, immigration and entity assessment.

Employers should retain contracts, sector classifications, schedules, attendance, overtime, leave, payslips, INSS and IRPS records, disciplinary documents, safety evidence and termination files. Mining, construction, port, logistics, energy and manufacturing employers require enhanced controls for PPE, medical fitness, shifts and incident reporting.

12. Termination, Severance and Final Settlement

Outside probation, a fixed-term employee generally gives 30 days' resignation notice. An indefinite-term employee generally gives 15 days after 6 months but up to 3 years of service and 30 days after more than 3 years.

Economic-termination compensation

Partial years are prorated. More favourable contractual or collective terms remain applicable.

Illustrative settlement

An employee earning MT 100,000 with 4 completed years of service whose salary equals 10 times the sector minimum falls in the 15-days-per-year tier. Compensation is approximately 60 days, or MT 200,000.

The formal calculation must use the actual wage classification, service dates, daily-pay method, notice, leave, INSS and IRPS treatment.

13. Hiring Model: Entity, EOR or Payroll Outsourcing

An EOR does not remove minimum-wage, INSS, IRPS, work-permit, safety or labour-dispute obligations. The client should not announce discipline or dismissal directly before the legal employer reviews the facts and procedure.

14. Common Mozambique Employment Risks for Chinese Companies