G-P’s Employer of Record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Employment contracts in Mozambique
It is legally required to put a written employment contract in place in Mozambique, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Mozambique should always state the salary and any compensation amounts in Mozambican meticais (MZN) rather than another currency.
Working hours in Mozambique
The workweek in Mozambique has a 48-hour limit and a daily limit of 8 hours, but overtime of up to 200 hours per year is permitted, with compensation.
Holidays in Mozambique
Mozambique celebrates 9 national holidays:
- New Year’s Day
- Heroes’ Day
- Women’s Day
- Worker’s Day
- Independence Day
- Victory Day
- Armed Forces Day
- Peace Day
- Christmas Day
Vacation days in Mozambique
In general, employees are entitled to:
- First year of employment: 1 day of paid leave per month
- Second year of employment: 2 days of paid leave per month
- Third year and beyond: 30 days of paid leave
Employees are entitled to up to 5 days of bereavement leave.
Mozambique sick leave
Employees are generally eligible for up to 15 days of sick leave, or 5 non-consecutive days per quarter. If the employee needs more time they must go to the health board. Social security will pay for 365 days of continuous sick leave for a non-occupational illness or accident.
Maternity/paternity leave in Mozambique
Pregnant employees are generally eligible for 60 days of maternity leave, which can begin up to 20 days before the due date. They are also generally entitled to up to 30 days of explained absences per year, which can be used for things like hospitalization of a child.
Fathers are entitled to 1 day of paid paternity leave.
Employees are also generally entitled to unpaid leave to be with hospitalized children under their care, and such leave may be reimbursed by social security.
Health insurance in Mozambique
Mozambique has a public/private healthcare system, but there are few doctors and nurses, especially in rural areas. Employers may choose to provide an additional healthcare plan or a stipend for residents to find their own plan.
Mozambique supplementary benefits
It is customary to provide allowances to employees for medical insurance, pension, transportation, etc. These are not mandatory but rather discretionary.
Performance-based bonuses are also common in Mozambique.
Termination/severance in Mozambique
Fixed-term contracts of up to 90 days are permitted.
Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice.
In general, employees on indefinite-term contracts are eligible for severance pay. Employees whose wages are :
- 1 to 7 times the national minimum wage receive 30 days pay per year of service.
- 8 to 10 times the national minimum wage receive 15 days pay per year of service.
- 11 to 16 time the national minimum wage receive 10 days pay per year of service
- Over 16 times the national minimum wage receive 3 days pay per year of service.
To terminate an employee for just cause, the employer must provide a written indictment note to the employee and the trade union within 30 days of the fault. The employee has 15 days to respond and the trade union has an additional 5 days to consult. Afterwards, the employer has 30 days to make a decision.
Paying taxes in Mozambique
Employers contribute 4% of wages to social security and employees contribute 3%.
Why G-P
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.