MOZAMBIQUE
Payroll Outsourcing
Pay Your Talents in Mozambique Compliantly.
Pay Your Team in Mozambique. On Time. Everytime.
Ensure your team in Mozambique is paid accurately and on time with our Payroll Outsourcing services.
Gain expert support to keep your operations fully compliant with Mozambique's Labour Code and tax regulations.
- Pay your employees in Mozambique - no matter the currency.
- Get the support you need to navigate employee contributions.
Flexible Payroll Solutions in Mozambique
Payroll solutions that adapt to your needs whether you are established or growing in Mozambique.
Mozambique Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Mozambique and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes - manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Mozambique
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Mozambique legislation at all times.
Mozambique Country Overview
Geographic location: Mozambique is a southeastern African country bordering Malawi, South Africa, and Eswatini, with a long Indian Ocean coastline and major ports.
Population: Home to over 33 million people, Mozambique’s official language is Portuguese, alongside more than 40 local languages.
Economy: Rich in minerals, natural gas, and arable land, Mozambique is gradually recovering economically and has strong growth potential.
Payroll in Mozambique - What You Should Know
Country Profile - Mozambique
Population: 34,900,000
Gross Domestic Product (GDP): $22.6 billion
GDP Growth: 5.0%
Inflation, consumer prices: 4.3%
Foreign Direct Investment (% of GDP): ~12.0%
Unemployment Rate: 3.8%
Capital: Maputo
Currency: Mozambican metical (MZN)
Languages: Portuguese (official), Makhuwa, Tsonga, Sena, Lomwe, Chuwabo, and numerous other indigenous languages
Social Security Contributions
Employer Contribution
- 4% of the employee's gross salary must be contributed to the National Social Security Institute (INSS).
- Employers are responsible for workplace health and safety compliance and occupational accident obligations.
- Additional sector-specific contributions may apply depending on the industry and employment arrangements.
Employee Contribution
- 3% of the employee's gross salary must be contributed to the National Social Security Institute (INSS).
Consumption Taxes
- Value-added tax (VAT)
The standard VAT rate is 16%.
Working Hours and Employee Benefits
Paid Time-Off
- On the first year of employment, workers in Mozambique are entitled to one paid leave per month
- On the second year of employment, workers in Mozambique are entitled to two days of paid leave per month
- Once an employer accumulates 3 years of service, they are entitled to 30 days of paid leave per year
Sick Leave
In Mozambique, employees are entitled to up to 15 days of paid sick leave – or 5 days per quarter.
Should a worker require more sick leave, they must perform an examination with the health board.
Maternity Leave
In Mozambique, women are entitled to a maximum of 60 days of paid maternity leave. They are also entitled to up to 30 days of explained absences in case their children are hospitalized, for instance.
Paternity Leave
In Mozambique, men are entitled to 1 day of paid paternity leave.
Termination in Mozambique
Employees in Mozambique can only be terminated under certain grounds as specified by the Labour Code. The worker is then entitled to 30 days’ notice.
- To terminate an employee for just cause, the employer must provide a written dismissal note to the employee and the trade union within 30 days.
- The employee then has 15 days to respond and the trade union an additional five days.
- Afterwards, the employee has one month to make a final decision.
Severance Pay in Mozambique
Employees in Mozambique are generally entitled to severance pay. The sum is calculated based on the worker’s wage.
- 1-7 times the national minimum wage: receive 30 days’ pay per year of service
- 8-10 times the national minimum wage: receive 15 days’ pay per year of service
- 11-16 times the national minimum wage: receive 10 days’ pay per year of service
- 16+ times the national minimum wage: receive 3 days’ pay per year of service
Public Holidays in Mozambique
- New Year’s Day
- Heroes’ Day
- Women’s Day
- Good Friday
- International Workers’ Day
- Mozambique Independence Day
- Lusaka Peace Agreement Day
- Armed Forces Day
- Peace and National Reconciliation Day
- Christmas Day
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Mozambique?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Mozambique's labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Value of Payrolls Processed Annually
Payslips Issued Annually
Payrolls Process Annually
Trusted by Inspiring Changemakers
Africa HR Solutions is for us everything what we have hoped for. Customer- and people oriented, fast and always willing to think along and find the best possible solution. We get professional services and an exceptional single point of contact.
Africa HR Solutions has been a great partner to our organisation, allowing us to quickly expand and operate in new markets while they flag and support management of compliance and risk issues. We now use Africa HR for support in some capacity in 8 of our geographic locations.
We really valued how quickly Africa HR set up an operational platform for our programme in Tanzania. The team were responsive over Teams and email and provided clear guidance on local employment requirements, which helped us structure delivery quickly and with confidence.
Africa HR is responsive, proactive, and accommodating, even with the time difference. In fact, it works in my favour - they have time to handle tasks before I start my day. Our payroll, especially in Senegal, is complex, but their attention to detail and willingness to go the extra mile definitely stand out.
Africa HR has taken the stress out of compliance - we no longer have to worry about changing regulations. Their team is professional, knowledgeable, and always available. Payroll runs smoothly, which saves us valuable time and our staff appreciates being paid on time! Kudos to the team!
Simplify and manage your team's payroll in Mozambique
Payroll in Mozambique is managed with accurate INSS contributions, compliant taxes, and timely disbursements.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.