Seeking A Reliable Payroll Partner in Mozambique ?
With our Mozambique Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Mozambique’s Labor 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.
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)
Mozambique Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
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Countries We Cover
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.
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