When you think about adding new employees to your company, you have to consider all aspects of an offer, including compensation and benefits. Without the proper support and preparations, this step can prove even more difficult in a new country where you’re not sure of the employment compliance laws, hiring process, and other factors.
Mozambique compensation laws
Mozambique has 17 sectors and sub-sectors. Before companies hire and onboard employees, they should research the Mozambique compensation laws for your sector. Collective bargaining agreements (CBAs) can also dictate a separate minimum wage for the specific industry.
Guaranteed benefits in Mozambique
Companies must ensure their Mozambique benefits management plans include guaranteed benefits required by law to stay compliant. All employees should get paid time off for the country’s 9 national holidays. They should also receive paid annual leave based on their years of employment:
- First year of employment: 1 day per month
- Second year of employment: 2 days per month
- Third year of employment and up: 30 days
Pregnant employees should generally receive 60 days of maternity leave, which they can take up to 20 days before their due date. They are also entitled to up to 30 days of explained absences each year that they can use for emergencies such as a sick or hospitalized child. Fathers in Mozambique get 1 day of paid paternity leave.
Mozambique benefits management
Once companies draft a Mozambique benefits management plan, they need to discuss the best way to disperse those benefits to their employees. In addition to providing guaranteed benefits, they should add supplemental benefits that will encourage better retention rates and attract top talent.
For example, Mozambique operates under a public/private healthcare system. Employers may choose to provide an additional healthcare plan or a stipend for residents to find their own plan.
Restrictions for benefits and compensation
International companies are restricted by the incorporation process when trying to give out benefits and compensation. They must set up a subsidiary in Mozambique before they can hire employees, add them to the payroll, and come up with a compensation and benefits plan.
With our Employer of Record solution, companies don’t have to set up their own entity before offering compensation and benefits to employees. We’ll take care of payroll and benefits setup in compliance with local laws.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.