Hire in Mozambique
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Mozambican Currency
Mozambican Metical (MZN)
The Capital of Mozambique
Maputo
Time Zone in Mozambique
GMT + 2
Important Facts About the Country of Mozambique
Introduction to Mozambique
Mozambique, formally referred to as the Republic of Mozambique, is situated in southeastern Africa, with the Indian Ocean bordering it to the east. Spanning approximately 800,000 square kilometers, it ranks among the continent’s largest countries. With a population exceeding 32 million, Mozambique boasts a diverse populace. The capital city, Maputo, serves as the nation’s focal point for politics, economics, and culture.
What to Know about Mozambique’s Geography
Mozambique shares its borders with several neighboring countries, including Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Africa to the southwest. Along its eastern side, Mozambique boasts a coastline extending over 2,470 kilometers. The country’s diverse geography encompasses plateaus, mountains, expansive savannas, and verdant coastal plains, contributing to its abundant biodiversity and captivating natural landscapes.
Climate in Mozambique
Mozambique features a tropical climate characterized by well-defined wet and dry seasons. The wet season generally spans from November to April, bringing substantial rainfall and occasional cyclones, particularly along the coast. In contrast, the dry season, extending from May to October, is characterized by clear skies, reduced precipitation, and cooler temperatures.
The Culture of Mozambique
The cultural tapestry of Mozambique is a vibrant fusion of indigenous customs, colonial legacies, and Swahili heritage. Festivals and gatherings often feature traditional dances such as Marrabenta and Makhuwa, adding rhythm and color to the cultural landscape. Mozambican cuisine is a delightful blend of local staples infused with Portuguese, Indian, and Arab influences, resulting in a rich and diverse culinary palette.
Religions Observed in Mozambique
Christianity, mainly Roman Catholicism and Protestantism, holds the largest sway in religious practices, embraced by over half of Mozambique’s populace, especially in urban centers. Islam also commands a notable following, particularly in the northern territories and coastal regions. Alongside these faiths, some communities uphold traditional African beliefs and rituals.
Languages Spoken in Mozambique
Portuguese serves as the official language of Mozambique, spoken by approximately half of its inhabitants. Additionally, Makhuwa, Changana, Nyanja, Ndau, Sena, Chwabo, and Tswa are among the most widely spoken indigenous languages in the country.
Mozambican Human Resources at a Glance
Employment Law Protections in Mozambique
The Labor Law of 2007 stands as the cornerstone of Mozambique’s employment regulations, shaping the landscape of employment relationships. Alongside this pivotal legislation, various other rules and regulations also hold significant sway in governing employment practices.
- Law number 4/2007 mandates Compulsory Social Security, ensuring citizens’ welfare and financial security during their employment tenure.
- Additionally, Decree number 53/2007 validates the Regulation of Compulsory Social Security, providing a structured framework for its implementation.
- Furthermore, the Constitution of the Republic of Mozambique, established in 2004, serves as the overarching legal document, guiding the nation’s governance and societal norms.
Employment Contracts in Mozambique
A written employment agreement is typically necessary, except for assignments lasting less than 90 days. It falls upon the employer to provide this written contract.
Employment contracts in Mozambique come in three main types: permanent, fixed-term, and unspecified. If a contract does not specify its duration, it is presumed to be permanent.
Fixed Term Contacts for Mozambican Employees
In accordance with Mozambican labor law, employing fixed-term contract workers for permanent roles is strictly prohibited. Fixed-term contracts are permissible for temporary duties that deviate from the typical production and operational cycle of the company. Failure to provide a valid reason for initiating a fixed-term contract will automatically convert it into an indefinite employment agreement.
Temporary needs that warrant fixed-term contracts include:
- – Covering for employees unable to fulfill their duties due to various reasons such as illness or maternity leave.
- – Addressing exceptional surges in production or seasonal work demands.
- – Undertaking tasks that do not align with the long-term requirements of the employer.
- – Completing a specific project, task, or other temporary activities.
Fixed-term contracts can be executed for up to two years (24 months), with the possibility of renewal twice, totaling a maximum duration of 72 months. However, small and medium-sized enterprises are exempt from this restriction and can enter into fixed-term contracts for the first eight years of their operation.
Mozambique's Guidelines Regarding Probation Period/Trial Period
According to the Labor Law, a probationary period signifies the initial phase after the execution of an employment contract.
For permanent contracts, the probationary period must adhere to the following limits:
- – 180 days for intermediate and higher-level employees, including those in leadership and management roles.
- – 90 days for employees in other job categories.
- For fixed-term contracts, the probationary period must not surpass:
- – 15 days for fixed-term contracts lasting up to six months.
- – 30 days for fixed-term contracts ranging from six months to one year.
- – 90 days for fixed-term contracts exceeding one year in duration.
Regulations and Rules Regarding Working Hours in Mozambique
As per labor regulations, standard working hours amount to eight hours per day and 48 hours per week. Extending daily work hours to nine is permissible, provided the employee receives an extra half day of rest each week, supplementing their regular weekly break.
Under exceptional circumstances and subject to collective agreement, daily working hours can be extended by up to four hours, ensuring that the total weekly working hours do not surpass 56.
Mozambican Laws Regarding Overtime
In instances where there are substantial grounds necessitating extended working hours, an employee can undertake up to 96 hours of overtime per quarter. However, the accumulation of overtime should not surpass eight hours weekly or 200 hours annually.
Overtime is sanctioned solely when employers face escalated workloads that do not warrant hiring new staff, and when substantial justifications exist. If an employee works beyond the stipulated hours for the week, they are entitled to overtime compensation as follows:
- – 150% of the standard hourly rate for overtime hours until 8 p.m.
- – 200% of the standard hourly rate for overtime hours from 8 p.m. until the commencement of regular hours the following day.
- – 200% of the standard wage rate for work conducted on Sundays, public holidays, or additional rest days.
When an employee is required to work on their weekly rest day, a public holiday, or an additional rest day, compensatory rest time is provided. This compensatory rest day must be granted within the subsequent three working days. However, if the exceptional work period lasts no more than five hours, the employee is entitled to a half-day of compensatory rest.
Termination
Termination of an employment contract may occur under the following circumstances:
- – Expiry of the contract
- – Mutual agreement
- – Termination initiated by the employee (with or without just cause)
- – Termination initiated by the employer (with or without just cause)
Employees cannot be terminated arbitrarily by merely issuing a notice period. In the case of employees on fixed contracts, employers must furnish written notice prior to the contract’s expiration. Additionally, if redundancies are necessary, affected employees slated for termination must receive written notices from their employer.
Mozambique's Requirements Regarding Notice Periods
Either party can terminate an employment contract by providing notice or offering payment in lieu of notice. If an employee terminates a fixed-term employment contract, the law requires a minimum of 30 days’ notice or payment in lieu of notice. In the case of termination of a permanent contract, the law stipulates the following notice periods:
- – 15 days’ notice if the length of service ranges from more than six months but less than three years.
- – 30 days’ notice if the length of service exceeds three years.
Redundancy/Severance Pay in Mozambique
Upon termination, a permanent employee is eligible for severance pay based on the following criteria:
- – 30 days of wages for each year of service if the employee’s basic monthly wage, inclusive of length of service bonus, falls within one to seven times the national minimum wage.
- – 15 days of wages for each year of service if the employee’s basic monthly wage, inclusive of length of service bonus, ranges from eight to 10 times the national minimum wage.
- – 10 days of wages for each year of service if the employee’s basic monthly wage, inclusive of length of service bonus, falls between 11 and 16 times the national minimum wage.
- – 3 days of wages for each year of service if the employee’s basic monthly wage, inclusive of length of service bonus, exceeds 16 times the national minimum wage.
Upon termination of a fixed-term contract, the employer is obligated to furnish the impacted employee with monetary compensation equal to the wages they would have accrued from the termination date until the contract’s scheduled expiration, whether it spans days or months.
Tax and Social Security Information for Employers in Mozambique
Personal Income Tax in Mozambique
In Mozambique, personal income tax is determined based on the following tax table:
Annual Income Bracket (MZN) | Tax Rate % | Deductible (MZN) |
---|---|---|
0 – 42,000 | 10% | 0 |
42,001 – 168,000 | 15% | 2,100 |
168,001 – 504,000 | 20% | 10,500 |
504,001 – 1,512,000 | 25% | 37,500 |
Over 1,512,000 | 32% | 141,540 |
Non-Mozambican residents are subject to a fixed flat rate of 20% for earned income tax, which the employer or relevant payer withholds and remits.
Municipal taxes fluctuate depending on the municipality. For instance, in 2023, Maputo city levied an annual fee of MZN 510. Employers deduct this tax from each employee’s salary and transmit it to the tax authorities.
Social Security in Mozambique
The National Institute of Social Security (INSS) mandates compulsory contributions from both employers and employees in Mozambique.
Employers are required to contribute 4% of their employees’ monthly salaries towards social security, while employees must contribute 3%. These contributions are deducted directly from the employee’s salary by the employer.
Foreign nationals may be exempt from social security contributions in Mozambique if they are already making such contributions in their home country.
Please note that the rates provided are general guidelines and actual rates may vary.
Important Information for Mozambican Employees
Salary Payment
According to the Labour Law, compensation can be determined by the quantity of work completed, the duration of work, or a combination of both.
Wages must reflect the actual hours worked and be disbursed in legal tender at regular intervals, whether weekly, biweekly, or monthly.
Payslip
Employers must keep records of the payroll list or applicable payslips, in addition to retaining tax and social security payment forms.
Annual Leave
Employees accrue paid annual leave based on their length of service as follows:
- – 12 days (equivalent to one day for each month of actual service) during the first year.
- – 30 days starting from the second year onwards.
The entitlement of employees to utilize their paid leave cannot be waived or denied under any circumstances. Typically, annual leave is taken continuously, but arrangements can be made to divide it. The minimum duration for leave at one time is six days.
For employees with fixed terms exceeding three months but less than one year, they are entitled to one day of vacation for every month of actual service.
Sick Leave
Employers are obligated to grant sick leave for a maximum of 15 consecutive days or five non-consecutive days within a quarter. Beyond this period, employers may refer the employee to a health board to assess their ability to continue working. Furthermore, in accordance with social security regulations, employees are entitled to receive sick pay for up to 365 consecutive days in the event of an accident or illness unrelated to work. Consequently, employees who contract an illness or experience a non-work-related accident may qualify for sick leave under the Social Security system, during which time the employer is not required to provide wages.
Maternity & Parental Leave
Maternity Leave
Female employees are entitled to a maternity leave spanning 90 consecutive days. This leave can commence 20 days before the anticipated delivery date. Regardless of whether the birth results in a live or stillborn child, and irrespective of its full-term or premature nature, the 90-day leave remains applicable.
The compensation for a worker on maternity leave is governed by the compulsory social security system.
During pregnancy and up to one year following the conclusion of maternity leave, the employee’s employment contract cannot be terminated, except in cases of dismissal or expiration.
Paternity Leave
Male employees are granted a seven-day paternity leave, which begins the day after the birth of the child. Paternity leave cannot be utilized within one year and six months after the previous leave was taken.
In the event of the mother’s incapacity or demise, the father is entitled to 60 days of paternity leave. If both spouses are employed by the same employer, they may mutually exchange their maternity or paternity leave to manage work commitments. The employee must provide written notification to the employer to initiate paternity leave.
Public Holidays
Typically, Mozambique observes nine public holidays throughout the year.
Termination
Generally, if termination is not due to justifiable causes like non-performance or misconduct, mutual agreement is sought for termination, with the terms documented. In such cases, a termination payment, such as redundancy pay, may be made.
Termination of employees is not uncommon in other sectors as well.
Maternity & Parental Leave
Female employees are entitled to 26 weeks of maternity leave, which can begin as early as eight weeks before the expected delivery date. The remaining weeks can be taken after childbirth. For women expecting their third child or more, the paid maternity leave duration is 12 weeks, with six weeks before and six weeks after the expected delivery date. Maternity leave is granted with full pay if the employee has completed at least 80 days of service with the employer in the 12 months before her expected delivery date. Maternity benefits are paid at the average daily wage rate for the duration of the absence from work. Additionally, female employees receive a medical bonus of INR 3,500 if health benefits are not provided by the employer. If a woman’s job allows, she may work from home after utilizing maternity benefits, based on mutual agreement between her and the employer.
The law also provides for adoption leave of 12 weeks for women adopting a child under three months old. A commissioning mother, who provides her egg for embryo implantation in another woman, is entitled to 12 weeks of leave from the date the child is handed over to her. The woman giving birth, known as the host or surrogate mother, is not eligible for this leave.
Employers are required to inform female workers of their rights under the Act at the time of appointment, both in writing and electronically.
While paternity leave is offered to government employees, it is not mandated in the private sector, and its provision is at the discretion of the employer.
Other Leaves
Some types of leave, such as study leave, bereavement leave, and leave for voting, may vary depending on the industry or state of employment. These leaves can be paid, unpaid, or half-paid, and their availability is typically determined by the organization’s policies and practices.
Benefits to the Employee in Mozambique
Mozambican Statutory Benefits
Employees are entitled to a range of benefits as stipulated by law and collective agreements. These benefits encompass retirement pensions, public holidays, annual leave, sick leave, maternity leave, and more.
Rules Regarding Visas and Foreign Workers in Mozambique
General Information
Visas
For travelers planning a visit to Mozambique, a visa is typically required unless they are citizens of a country exempt from visa requirements. Visas can be obtained upon arrival or from a Mozambican embassy or consulate prior to travel.
The duration of the visa depends on its type, with options ranging from single to multiple-entry visas valid for 30 to 60 days. Mozambique offers various visa types, including Tourist, Transit, Family Reunion, Work, Business, and Study visas.
Work Permits
Foreign nationals seeking employment in Mozambique must obtain a work permit. These permits are generally granted when the employer can demonstrate the unavailability of qualified Mozambican candidates for the position.
The Ministry of Labor’s guidelines outline several systems for hiring foreigners, including the quota system, employment under Government-approved investment projects, short-term hiring, or hiring with specific authorization (outside the quota).
Public Holidays Recognized by Mozambique in 2024
Occasion | Date | |
---|---|---|
1 | New Year’s Day | January 1 |
2 | Heroes’ Day | February 3 |
3 | Women’s Day | April 7 |
4 | Women’s Day Holiday | April 8 |
5 | Workers’ Day | May 1 |
6 | Independence Day | June 25 |
7 | Lusaka Peace Agreement Day | September 7 |
8 | Armed Forces Day | September 25 |
9 | Peace and National Reconciliation Day | October 4 |
10 | Family Day | December 25 |
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