Individual employment contracts in Mozambique must be in writing and identify the employee and employer, working hours, workplace, duration, conditions for renewal, salary details, date when the contract begins, its term date and signatures.

Fixed-term contracts may be for a period of up to two years and may be renewed twice by agreement between the parties. The duration of a fixed-term contract must be in writing.

Contracts that do not specify a duration will be treated as indefinite term contracts even if the employer demonstrates the activity is temporary.

The minimum wage in Mozambique varies by business sector. Employers are not required to pay bonuses but performance-based and seniority bonuses are common.

The standard workweek in Mozambique is limited to 48 hours and eight hours a day. Employees can work nine hours a day if the employer offers an extra half-day of rest a week. The limits on work hours do not apply to those in leadership, management, trust or supervisory positions. Employees also receive at least twenty-four consecutive hours off per week, usually on Sunday.

Overtime

Employees can work overtime in Mozambique, but no more than eight hours a day, 96 hours a quarter or 200 hours per year. Overtime is paid at 150% if performed during the day up to 8 p.m. or 200% if performed at night.

Exemptions might be in place for workers under the fixed work schedule exemption such as managers, trust positions or workers in functions that by their own nature justify the adoption of the fixed work schedule exemption

Employees receive 15 consecutive days of paid sick leave a year in Mozambique or up to five non-consecutive days in a quarter, after which an employer can refer the employee to the health board to determine the employee’s capability to work. Employees may be eligible for benefits under Mozambique’s social security system. Eligible employees receive 70% of their average daily earnings for up to 365 days after a three-day waiting period. To be eligible, the employee must have made at least three contributions in the 12 months preceding leave.

Maternity Leave

Female employees in Mozambique receive paid maternity leave of 60 days, which may begin up to 20 days before the due date. Benefits are paid through Mozambique’s social security system. Employees receive 100% of their average daily earnings if they have made at least 12 months of contributions in the 18 months before the expected due date.

Paternity Leave

Male employees are entitled to one day of paternity leave every two years. It must be taken the day immediately following the birth.

Employees in Mozambique start with one day of paid annual leave for every month of service. Employees can earn up to 30 days of paid leave per year.

Employers can choose to implement a vacation carryover policy but there is no specific automatic policy in place

Mozambique has no other types of statutory leave.

Holidays falling on a Sunday are moved to the following Monday.

Date Day Holiday Notes

1 Jan 2024 - Monday - New Year’s Day

3 Feb 2024 - Saturday - Mozambican Heroes Day

29 Mar 2024 - Friday - Good Friday

7 Apr 2024 - Sunday - Mozambican Woman’s Day

8 Apr 2024 - Monday - Mozambican Woman’s Day - Day Off in Lieu

1 May 2024 - Wednesday - May Day

25 Jun 2024 - Tuesday - Independence Day

7 Sep 2024 - Saturday - Victory Day

25 Sep 2024 - Wednesday - Armed Forces Day

4 Oct 2024 - Friday - Peace and Reconciliation Day

25 Dec 2024 - Wednesday - Family Day

Mozambique has a public healthcare system, but most international employers offer private health insurance.

Employers may terminate an indefinite-term contract in Mozambique without just cause but for structural, technological or market-related reasons essential to maintain its competitiveness. The employee is entitled to compensation. For a fixed-term contract, the employer must pay compensation equivalent to the wages that the employee would have earned between the date of termination and the contractual end date.

An employee may terminate a contract for just cause. The employee must give the employer prior notice of at least seven days. The employee is entitled to compensation in an amount of 45 days of wages for every year of service or the amount remaining on a fixed-term contract. The employee may terminate the employment contract without cause by giving prior notice in writing to the employer.

Notice Period

There is no at-will termination via a notice period though it is standard to give 1 week’s notice during Probation and 1 months notice thereafter. The employer must provide notice to the employee or the union.

Severance

Workers will be entitled to severance of up to 30 days pay per year of service, depending on the nature of termination.

For non-Mozambican residents, the earned income tax is withheld and remitted by the employer at a flat rate of 20%.

Social security contributions are payable monthly on all salaries, wages, regular bonuses, or other regular income, excluding meal subsidies. The employer contributes an amount equal to 4% of monthly salary, and the employee contributes 3% of monthly salary. The employer withholds employees’ contributions. Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country.

Payroll Frequency

Monthly, by no later than the last day of the month

Employees apply for the Single Entry visa when seeking a work visa in Mozambique. Additional ocuments required to apply for a work visa in Mozambique are:

• Copy of authorization letter from Ministry of Labor/ Ministry of Justice and Religious Affairs in Mozambique.

• Clean bill of Health (3 months validity)

• Copy of work contract in Mozambique.

• Copy of Police Clearance from your current residence, authenticated by the U.S. Department of State in D.C. and recognized by the Embassy of Mozambique. (3 months validity)

• Business Letter from the Company.

• ALVARA (Business Permit)

• Copy of the Mozambican ID of the employer.

• Copy of flight itinerary and a copy of hotel reservation.

The Mozambique standard VAT rate is 16%.