As of March 2024, the estimated population of Mozambique is 33,897,354.
The currency in Mozambique is the Mozambican Metical (MZN). The currency symbol is Mt.
Employment contracts of indefinite duration are considered permanent contracts. Such contracts are concluded to fill job vacancies contemplated in the business's staff structure or those corresponding to its regular production or operating cycle. Permanent contracts can be terminated by giving a notice period. They can also include probationary periods not exceeding 180 days for high-level technicians and employees who hold leadership and management positions, 90 days for intermediate-level technicians, and 60 days for all other employees.
Individual employment contracts must be in writing, be dated, and signed by both the employer and the employee. They must specify both parties' identities, the nature of the job, duties, place of work, contract duration, date of commencement, and other terms and conditions. Fixed-term contracts for less than 90 days need not be in writing. Failure to conclude the contract in writing does not affect the agreement's validity or the employee's rights. Moreover, this failure is presumed to be attributable to the employer, who will be subject to all its legal consequences.
A temporary employment contract is an agreement concluded between a private employment agency and an employee. The employee undertakes to temporarily perform work for a user company in exchange for remuneration. Temporary employment contracts must be in writing and signed by both the private employment agency and the employee. A user contract is signed between the private employment agency and the user company. It must contain details on reasons for using temporary labor, the nature of work, the fee to be paid, etc. A temporary worker can be assigned to more than one user company at a time. While working for a user company, temporary employees are subject to the employment rules applicable to the user company concerning the place, manner, duration, suspension, and performance of work, discipline, safety, hygiene, health, and access to the user's social facilities.
An employee who is employed in a position that is considered a mid-level technician can be subject to a 3-month probationary period. Higher-level technicians or employees in leadership or management positions can be subject to a probationary period of up to 6 months. The probationary period must be explicitly included in the employment contract. An employment contract can be terminated during the probationary period by either party without showing just cause and without any right to compensation unless this is otherwise stipulated. Either contracting party is obliged to give a minimum of seven days’ notice in writing to the other party.
Regular working hours must not exceed 48 hours per week and eight hours per day. Daily working hours may be increased to 9 hours per day, provided that the employees are given an extra half-day of weekly rest. The regular working hours of minors between the ages of 15 and 18 must not exceed 25 hours per week and are limited to a maximum of 5 hours a day. By collective agreement, under exceptional circumstances, employees may work up to 4 additional hours per day, as long as the total does not exceed 56 hours per week.
2026
2027
Employees are entitled to paid annual leave as follows: 1 day for every month of actual service, during the 1st year of service 30 days for every year of actual service, from the 2nd year onwards Fixed-term employees employed for more than 3 months but less than 1 year are entitled to holidays of 1 day for every month of actual service. The employer can postpone annual leave for compelling reasons. Up to 15 days of annual holidays can be accumulated per year up to a maximum of 60 annual leave days in a year. The accumulated holidays must be taken during the year following that in which the limit is reached. Up to 30 days of annual leave can be taken in advance.
According to the Labour Law of Mozambique, employers must grant sick leave for an uninterrupted period of up to 15 days in a year (or 5 non-continuous days in a quarter), after which an employer can refer the employee to a health board to determine their capacity to work. Employees who have paid at least 6 months' social security contributions during the last 12 months are entitled to 365 continuous days of sick pay under the social security system in case of a non-occupational illness or an accident. They must submit a medical certificate. There is a 3-day waiting period for benefits paid by INSS unless the worker is hospitalized, receives verification from a medical professional on the first day of illness, or tests positive for an infectious disease that is verified by a medical professional.
Female employees are entitled to a paid maternity leave of 90 consecutive days, which may commence 20 days before the expected delivery date. This leave shall apply equally to cases of full-term or premature births, regardless of whether it was a live birth or a stillbirth. If there is a clinical risk to the female employee or the child, she shall be entitled to a leave of absence before the birth without prejudice to the maternity leave. Mozambique National Institute of Social Security provides maternity benefits to insured employees who pay contributions. The allowance is paid at the rate of employee's average daily wage for up to 60 days. Employees are paid their regular remuneration during maternity leave. Employers are forbidden from giving female employees work that is harmful to their health or their reproductive functions or to dismiss pregnant employees during maternity leave or up to 1 year after birth.
Fathers are entitled to 7 days of paid paternity leave every two years, and this must be taken on the day immediately following the birth. An employee who wishes to take paternity leave shall inform the employer in writing, before or after the birth.
Advance notice in writing is required for terminating contracts. The length of the notice period depends on the reasons for termination. In case of termination of a contract at an employee's initiative, advance notice of seven days is required if there are just causes for termination. In other cases, the notice period must be as follows: 6 months to 3 years of permanent employment - 15 days More than 3 years of permanent employment - 30 days Fixed-term employment lasting more than 3 years - 30 days. Employers can terminate employment contracts with prior notice of at least 30 days on the basis of structural, technological, or market-related reasons. If a contract is terminated during probation, advance notice of seven days is required in writing. No notice is required for dismissal due to gross misconduct.
Employees dismissed for structural, technological, or market-related reasons are entitled to severance benefits as follows: Employees' basic wage is between 1 and 7 times the sector minimum wage - 30 days' wages for each year of service Employees' basic wage is between 8 and 18 times the sector minimum wage - 15 days' wages for each year of service Employees' basic wage is more than 18 times the sector minimum wage - 5 days' wages for each year of service Severance pay for the termination of the contract by employees is calculated as: Permanent employee - 45 days of wages for every year of service Fixed-term employee - remuneration that the employee would have earned between the termination date and the contract's expiry date
Mozambique's National Institute of Social Security, Instituto Nacional de Segurança Social (INSS), covers retirement benefits. The retirement age is 55 years for women and 60 years for men. Employees become eligible to receive a pension if they have paid contributions for at least 240 months. An insured employee may take retirement at any age if they have paid at least 420 months of contributions. The monthly amount of pension is calculated as the insured employee's average monthly wages in the last five years multiplied by the number of contribution months, divided by 420. The minimum amount of the old-age pension is 90% of the lowest national minimum wage. If an employee has attained the retirement age and paid 120 contributions (but has not reached the 240 contributions threshold), they are eligible for a reduced pension at the rate of 50% of the regular pension. Both employees and employers pay social security contributions.
Survivors are eligible to receive benefits if the deceased employee was entitled to a retirement or disability pension. Survivors include a spouse (aged 45 years for women and 50 years for men) and children under 18 years (or 25 years if studying). There is no age limit for disabled children. Both the spouse and children are eligible for 50% of the pension to which the deceased was entitled. Spouses who are under 45 years (women) and 50 years (men) receive temporary pension for 5 years. If an insured person received a social insurance old-age or disability pension or had at least three years of coverage and at least six months of contributions in the 12 months immediately before death, their survivors would be eligible to receive a lump sum death grant equal to six times the deceased's average monthly remuneration in the 12 months before death. In case of death due to a work injury or disease, the surviving spouse, cohabiting partner, or legally separated spouse receives 60% of the deceased's remuneration. In contrast, dependent children receive 25% of the deceased's remuneration. If there are no spouses or children, other survivors receive 15% of the deceased's remuneration. The maximum combined pension is 80% of the employee’s remuneration. Employers are responsible for paying these benefits.
In Mozambique, insured employees are entitled to disability benefits provided under the social security system if they become temporarily or permanently disabled due to a non-work-related accident or disease before reaching retirement age and paid 30 months of contributions in the five years before the onset of disability. The sum of the benefits depends on the age of the employee and the number of contributions made. In case of disability due to work-related accident or disease, employees are entitled to receive a pension or lump sum, dependent on the type and degree of disability. Employers also cover expenses for medical treatment, hospital care, prostheses, medicine, and transportation.
Both residents and non-residents are subject to income tax. While residents are taxed on their worldwide income, non-residents are taxed on income from sources in Mozambique. If a person has a principal residence, a principal professional activity, or central economic interests in Mozambique, they are considered a tax resident. Married couples are not entitled to joint filing. The financial year runs from January through December. Residents' income is taxed at progressive rates ranging from 10% to 32%, while non-residents' income is taxed at a flat rate of 20%.
Mozambique recognizes the following categories of non-immigrant visas:
These visas can be issued for single or multiple entries.
Employers (whether national or foreign) may hire foreign nationals (whether as employees or otherwise) when they have the relevant authorization from the Minister of Labour or from entities to which the Minister has delegated this competency. It is forbidden to employ foreign nationals who entered the country on diplomatic, courtesy, official, tourism, visitor, business, or student visas. Employment of foreigners is limited to defined quotas (5-15%). Foreign employees need to apply for work authorization and a work permit. They must submit an application to the Ministry of Labour with relevant supporting documents. A short-duration work permit is available for foreign workers who will be employed for 120 days or less in a civil year when the contract is for a specific task and will not be considered under the particular quota for subsidiaries. In any case, the duration of a work contract employing a foreign national may not exceed 2 years, but may be renewed upon application.
