Mozambique

Employment taxes

• Income tax for resident employees in Mozambique ranges from 10% up to 32%, depending on your annual income.
• Non-residents working in Mozambique have a flat withholding rate of 20% on income earned in Mozambique.
• Social security contributions: You, as an employee, pay 3% of your monthly salary while your employer pays 4% on top.

Leave policy

• Annual leave: In the first year of employment you’re entitled to 1 day for each month of service, in total 12 days. The second year, the annual leave doubles, so you get in total 24 days, and from year 3 on, you typically get 30 days per year.
• Sick leave: The first 3 days are covered by the employer, and after that the social security takes over. Sick leave is paid at 65% of the average salary.
• Maternity leave: Mothers in Mozambique are entitled to 90 days of maternity leave fully paid by the social security.
• Paternity leave: Fathers in Mozambique are entitled to 7 days fully paid of paternity leave right after the child is born. The payment is covered by the social security.
• Parental leave is not covered by law.

Employment termination

• Termination must follow local labour-law formalities. There is no at-will termination. Legal grounds for termination include: voluntary by the employee, by mutual agreement, misconduct, redundancy, expiration of the contract, or during probation period.
• Notice period in Mozambique can vary based on years of service. Up to 1 year of service the notice period is 30 days, and for more than a year of service is 60 days. For managerial roles can be up to 90 days, and during the probation period is 7 days.
• Severance pay: For terminations without cause, severance pay may apply. The severance pay is calculated based on the employee salary and their years of service - up to 5 years of service, employees are entitled to 30 days of base salary, from 5 to 10 years of service they will receive 45 days of base salary, and for more than 10 years, 60 days of base salary.

Hiring and contracts

• Contracts must be in writing, in Portuguese language, or can be bilingual.
• Mozambique has two main types of contract - Indefinite-term (open-ended) and fixed-term (for a specific project) contracts.
• The contract should include job title, duties, remuneration, working hours, start date, place of work, etc.
• Probation period: From 30 - 90 days.

Payroll and salary payments

• Payroll is usually monthly in Mozambican Metical (MZN), with withholding of income tax and social security by the employer.
• In Mozambique, the national minimum wages vary by sector - from 5,800 MZN in agriculture to 13,500 MZN in finance and insurance.

Benefits

• Mandatory: Social security contributions, paid anual leave, maternity/paternity leave, sick leave.
• Optional: Private health insurance, housing allowance, transport/meal vouchers, training programmes.

Monthly living cost (Maputo Edition)

• Rent for a 1-bedroom apartment in the city centre: MZN 55,000 (€750 / $860)
• Rent for a 1-bedroom apartment outside the city centre: MZN 27,000 (€370 / $420)
• Utilities, internet, local transport, groceries: MZN 41,699 (€610 / $652)

How to get a local ID number

• When you relocate/work in Mozambique, you’ll typically need to register with the tax authority and social security.
• Your employer often handles the registration with the national social security and tax filings.

Social security registration

• Social contributions go to the national institute (Instituto Nacional de Segurança Social - INSS).
• Employer registers employee, withholds the 3% from the employee's salary and adds 4%.
• Foreigners may apply for exemption if covered in their home country pension/insurance scheme.

Banking

• A local bank account is recommended for salary payments and local transactions.
• Popular banks: Millennium BIM, BCI, Standard Bank.
• Having a local bank account also helps with registering for other services (utilities, residency etc).

Housing and rental process

• In Maputo is recommended to have the lease signed. The deposit is required for one or two months.
• Tenant rights: Leases should be clear about notice periods, condition of apartment, rights to repairs, etc.
• It’s wise to inspect property carefully and agree terms in writing.
• Neighbourhood choice will influence cost, commute, safety, amenities.

Healthcare system

• Mozambique has public healthcare services covered by the social security.
• Make sure you have health insurance (local or international) to cover you, especially if you relocate.
• In major cities, you’ll find private clinics which offer a higher standard and faster service.
• For serious treatment, you may need to travel to a major city or out of the country.

Driving and public transport

• Public transport in Maputo: Buses, “chapas” (minibuses) and taxis. Traffic and road conditions vary.
• Driving yourself: If you have an international driver’s licence and local permissions you can drive. Be aware of road rules, condition, and signage.

Emergency and important contacts

• Ambulance - 117
• Fire - 118
• Police - 119

Work permit and visa requirements

• If you’re coming from abroad, you’ll need a relevant visa and a residence permit.
• Your employer usually acts as sponsor, and needs to apply to MITESS for authorization, to hire a foreign national. This application requires demonstrating that the position cannot be filled by a qualified Mozambican national.
• If the work authorization is approved, you apply for work visa at a Mozambican embassy or consulate in your country of residence, submitting the MITESS approval along with other required documents.
• Within 30 days of your arrival in Mozambique you must register with the National Immigration Service (SENAMI) and apply for a Residency Permit (DIRE - Documento de Identificação e Residência para Estrangeiros).

Business culture and work norms

• Portuguese is the official language, and knowing some Portuguese will help you a lot.
• Building trust and rapport matters. Meetings may start later than scheduled; flexibility is appreciated.
• Respect for seniority is common, engage respectfully and listen as much as speak.