Mozambique

• New Year’s Day
• New Year Holiday
• Heroes Day
• Mozambican Women’s Day
• Labour Day
• Independence Day
• Independence Day Holiday
• Victory Day
• Armed Forces & Revolution Day
• Peace & Reconciliation Day
• Family Day

Working Hours

Employees can work up to eight hours a day, or 48 hours per week.

Minimum Wage

MZN 8,756 per month.

Employee Tax

Annual income	Tax rate
Up to MZN 42,000	0%
MZN 42,001 - 168,000	15% - MZN 2,100
MZN 168,001 - 504,000	20% - MZN 10,500
MZN 504,001 - 1,512,000	25% - MZN 37,500
More than MZN 1,512,000	32% - MZN 141,540
Social security contribution	3%

Bonuses

There are no statutory bonus schemes in Mozambique.

Employment contracts in Mozambique should be written and signed by both parties. They should include:

• Employer and employee ID details
• Job title and responsibilities
• Workplace
• Working hours
• Salary
• Start date
• Contract length (if applicable)
• Date of contract signature

Both indefinite and fixed-term contracts are permitted in Mozambique.

Annual Leave

Up to one day’s holiday per month of service during the first year of employment, rising to two days per month in the second year and 30 days per year from the third year onwards.

Sick Leave

Up to 365 days’ continuous sick leave paid for by social security.

Parental Leave

• Maternity leave: at least 60 days' paid leave, plus 30 days' unpaid leave.
• Paternity leave: one day's leave.

Termination Process

Employers in Mozambique can only dismiss an employee, if there are grounds to support the dismissal.

Acceptable grounds for termination include:

• Misconduct that makes the contract impossible to maintain
• Technological, structural, or market-related reasons

To terminate an employee for just cause, the employer must provide a written indictment note to the employee and the trade union (if applicable) within 30 days of the fault.

Severance Pay

Employees are entitled to severance pay based on their income:

• 1-7x minimum wage = 30 days’ wages per year of service
• 8-10x minimum wage = 15 days’ wages per year of service
• 11-16x minimum wage = 10 days’ wages per year of service
• More than 16x minimum wage = 3 days’ wages per year of service

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.