MOZAMBIQUE
Payroll Outsourcing
Pay Your Talents in Mozambique Compliantly
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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 anyone in Mozambique - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Mozambique.
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: Bordering Malawi, South Africa, and Swaziland, Mozambique is found in south-eastern Africa. Its long coastline facing Madagascar gives it great natural harbors (including three deep seaports), ideal for trade in the Indian Ocean or throughout the globe.
Population: While Portuguese is the country’s official language, more than 40 languages are spoken in Mozambique. With more than 33 million inhabitants, the country is ranked 14th in the most populated countries on the African continent.
Economy: Mozambique boasts plentiful mineral resources and newly discovered natural gas and has vast arable lands. However, due to COVID-19 the country, registered its first economic contraction in almost three decades in 2020. With endeavors toward economic recovery, the progression is slow and steady, with an expected acceleration in medium-term growth, averaging 5.7% between 2022 and 2024 (World Bank).
Payroll in Mozambique - What You Should Know
- Population: 32,163,045
- Gross Domestic Product (GDP): $16.1 B
- GDP Growth (April 2021): 2.2%
- Inflation, consumer prices: 3.1%
- Foreign Direct Investment (% of GDP): 22.7%
- Unemployment Rate: 4.0%
- Capital: Maputo
- Currency: Mozambican metical
- Languages: Portuguese, Makhuwa, Changana
Employer Contribution
- 4.00% of the employees’ emoluments must be contributed to social security.
Employee Contribution
- 3.00% of the employee’s emoluments must be contributed to social security.
Value-added tax (VAT)
The standard VAT rate is 17% in Mozambique – applied to the supply of goods and services both local and imported.
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.
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.
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
- New Year’s Day (1st January)
- Heroes’ Day (in Mozambique) (3rd February)
- Women’s Day (of Mozambique) (7th April)
- Good Friday (10th April)
- International Workers’ Day (1st May)
- Mozambique Independence Day (25th June)
- Lusaka Peace Agreement Day (7th September)
- Armed Forces Day (25th September)
- Peace and National Reconciliation Day (5th October)
- Christmas Day (25th December)
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.
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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.
