Mozambique Employer of Record & Payroll Services

Africa Deployments Mozambique: Comprehensive EOR Solutions for Your Business

Africa Deployments Mozambique (ADS) offers top-tier Employer of Record (EOR) services to businesses across the country. Whether you’re seeking full-time employment or fixed-term contracts, we provide flexible solutions tailored to your specific requirements in Mozambique. Our services extend to both locals and expatriates, ensuring that your employees are fully compliant with local regulations.

Employer of Record Services in Mozambique

• Work Permits & Local Contracts: ADS handles all aspects of work permits under our umbrella and issues local employment contracts, ensuring smooth onboarding for your team.
• HR Consultation: We provide guidance on best HR practices when establishing employees locally in Mozambique.
• Tax & Compliance: ADS ensures that local tax and PAYE remittances are managed efficiently, keeping your business compliant with Mozambique’s tax regulations.
• On-time Payroll & Payslips: We guarantee timely salary payments and issue payslips for all employees, ensuring a seamless payroll experience.

About Mozambique

Mozambique is a beautiful country in southeastern Africa with a population of approximately 32.08 million (2021). It is known for its stunning coastline along the Indian Ocean, rich cultural heritage, and abundant natural resources, including gas, coal, and minerals. The capital city, Maputo, offers a vibrant mix of colonial-era architecture and modern development, serving as a hub for business in the region.

• Currency: Mozambican Metical
• Languages: Portuguese (official), with various indigenous languages spoken across the country.
• GDP: $15.78 billion (2021)
• Industries: Agriculture, Mining, Oil & Gas, Manufacturing

Employment Contracts in Mozambique

Through our Employer of Record solutions, we provide the following employment contracts:

• Fixed-Term Contracts: These contracts are renewable for up to 2 years.
• Indefinite-Term Contracts: For long-term engagement.

Contract Requirements: All contracts must be written in Portuguese and specify salary, benefits, and termination conditions.

Taxation in Mozambique

• Taxable Income: All cash income, such as wages, salary, bonuses, commissions, and other employee benefits, are subject to tax.
• Exempt Income: Non-mandatory social contributions (up to 10% of total gross income or MZN 3.6 million annually) are tax-exempt.

Working Hours & Overtime

• Standard Working Hours: 44 hours per week (8 hours per day).
• Overtime: Paid at a higher rate than regular hours.

Mandatory Contributions

Employees and employers contribute to the social security system (Instituto Nacional de Segurança Social – INSS). Employees pay 3%, while employers contribute 4%, totaling 7%. Other employer contributions may include family allowances and work injury insurance.

Maternity & Paternity Leave

• Maternity Leave: Paid at 100% for 60 days, with at least 6 weeks of compulsory leave post-birth.
• Paternity Leave: 1 working day after childbirth or miscarriage.

Annual Leave & Sick Leave

• Annual Leave: 7 days of full-pay leave after 4 months of continuous service.
• Sick Leave: 15 days of paid sick leave annually, with extended sick leave covered by social security.

Bonuses & Gratuities

• Bonus: Not mandatory, but often paid based on seniority and performance.
• Gratuity: Employees who complete one year of continuous service are eligible for gratuity payments, which are typically based on final salary.
• Severance Payments: Provided in cases of unjust termination or redundancy.

Fringe Benefits

Fringe benefits are allowed but are subject to employee PAYE tax unless they cannot be converted into cash (e.g., housing or transportation allowances).

Probation Period

The probation period for new employees generally lasts up to 3 months, but it can extend up to 6 months depending on the contract type. Performance evaluations are required for extensions beyond 3 months.

Corporate Tax & VAT Rates

• Corporate Tax: 32%
• VAT/Sales Tax: 16%

Public Holidays in Mozambique

• January 1: New Year’s Day
• March/April (variable): Easter Monday
• April 7: Heroes’ Day
• June 25: Independence Day
• September 7: Victory Day
• September 25: Revolution Day
• October 4: Peace and Reconciliation Day
• December 25: Christmas Day

(Full list of public holidays available upon request)

Industries Supported in Mozambique

We serve a wide range of industries, including:

• Non-Governmental Organizations (NGOs)
• Engineering & Construction
• Oil & Gas
• FMCG & Manufacturing
• Banking & Finance
• Mining
• Agriculture

• Contact Us
  For detailed assistance with Employer of Record (EOR) services in Mozambique , including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.