Mozambique is a country in Southern Africa bordered by Tanzania, Malawi, Zambia, Zimbabwe, South Africa, Eswatini, and the Indian Ocean. With a strong workforce of 15.1 million people (2024) and a GDP of 21.3 million US dollars (2024), many businesses are looking to Mozambique for new workers, particularly in the agriculture, construction, and tourism sectors.

The economy of Mozambique has recovered in the face of challenges such as cyclones and COVID-19, and many companies are looking to hire in Mozambique due to their diverse talent pool, large informal sector, and competitive salaries. Companies doing business in Mozambique need to be highly aware of Mozambican labor laws, having a full understanding of mandatory employee benefits that they must provide to all workers.

This help guide aims to provide a comprehensive overview of Mozambican labor laws, including details on all mandatory labor laws that employees should be aware of. We’ll also give some examples of supplementary benefits to consider and services that Remote People can offer to help streamline hiring in Mozambique.

Mozambique Labor Law

Labor laws in Mozambique are primarily governed by the Labour Law of 2023 (Law No. 13/2023), which was approved by the Mozambique government in August 2023 and replaced the previous labor laws of Law No. 23/2007. 

These laws provide a legal framework to employers and employees, advising on the rights and obligations that must be met by both parties during work practices.

Other notable laws towards Mozambican labor law include:

  • Decree 53/2007 on the System of Compulsory Social Security for workers
  • Decree No. 51/2017 on the System of Compulsory Social Security for Workers
  • Decree No. 62/2013 on Occupational Accidents and Diseases (4 December 2013)
  • Criminal Code, 2019
  • Constitution of the Republic of Mozambique, 2004
  • Law No. 19 of 2014 on Ensuring the Dignity of Persons Living with HIV/AIDS
  • Decree (No. 68/2017)
  • Trafficking in Persons Law, 2008
  • Penal Code, 2014

When employing workers in Mozambique, it’s crucial to consult with legal experts to ensure strict compliance. This will protect employers from legal issues/penalties that may arise from not complying fully with local labor laws.

Mandatory Employee Benefits in Mozambique

We’ve detailed below the primary employee benefits that employers must provide when hiring in Mozambique:

Social Security Contributions

The Social Security System in Mozambique offers a range of social protection schemes and programs to protect those in situations of poverty, unemployment, old age, and disability.

Employers must contribute towards the Social Security System an equal amount of 4% of employees’ monthly salary, and the employees must contribute 3% of their monthly salary. The employee’s contribution must be withheld by the employer and contributed alongside their own contribution.

Self-employed workers must pay 7% of their monthly declared earnings towards social insurance.

Annual Paid Leave

Employees in Mozambique are entitled to 12 days of annual leave in their first year of employment, and 30 days of annual leave for each year thereafter.

This entitlement excludes national and religious holidays. Workers who are working a fixed-term contract for between 3 months – 1 year are entitled to 1 day of annual leave per month worked.

In addition to annual leave, workers must be permitted to take 24 consecutive hours of time off for every 7 days.

Working Hours

Normal working hours in Mozambique are 8 hours a day or 48 hours a week. The maximum number of hours an employee can work per week is 56 hours.

Hours may be extended to 9 hours per day, provided that the worker is given an extra half day of rest. Rest days are normally capped at 2 days per week.

Employees working night hours must be compensated at the rate of 125% of their normal wage. Night hours consist of any hours worked between 9 pm and the start of normal working hours on the following day.

Overtime Pay

Hours worked over an employee’s normal contracted hours are considered overtime. Overtime is generally discouraged; however, if unavoidable, overtime hours worked must be paid at 150% of an employee’s regular wage up to 24 hours, and 200% for hours worked over 24 hours.

While working hours are normally 8 hours per day, employees may work an additional 4 hours of overtime per day, provided that their weekly working hours do not total more than 56 hours.

Overtime hours must be agreed upon under a collective agreement. Employees must not work more than 200 hours of overtime per year, or 96 hours per quarter.

Public Holiday Leave

There are several public holidays in Mozambique that are considered paid days off and separate from annual leave entitlement.

If employees are required to work on a public holiday, they must be given a compensatory rest day within the following 3 days, or paid at 200% of the worker’s normal wage.

The public holidays taking place in Mozambique are as follows:

  • January 1: New Year’s Day
  • February 3: Mozambican Heroes Day
  • April 7: Mozambican Women’s Day
  • May 1: May Day
  • June 25: Independence Day
  • September 7: Victory Day
  • September 25: Armed Forces Day
  • October 4: Peace and Reconciliation Day
  • October 5: Peace and Reconciliation Day 
  • December 25: Family Day

Sick Leave

Employees in Mozambique can take a maximum of 15 consecutive sick days per year, or 5 non-consecutive days of sick leave per quarter. Workers will be paid at 75% of their normal wage when on sick leave.

The first 3 days are generally unpaid. The Social Security System may fund sickness benefits for up to 365 days upon contacting the health board.

Maternity Leave

Female employees are entitled to take 90 days of paid maternity leave when they have a baby. 20 of these days are generally taken prior to the birth of the child. Maternity leave is paid by the Social Security System, and employees must have made at least 12 months of contributions to be eligible to receive full pay on maternity leave.

Paternity Leave

Male employees are entitled to take 7 days of unpaid paternity leave if their partner has a baby. Paternity leave starts the day after the child is born, and can be taken once only in any 18 months. Additional paternity leave may be permitted in the event of death or incapacity of the mother.

Pensions

Retirement age in Mozambique is 65 for men and 60 for women. Mozambique operates under both contributory and non-contributory pension schemes, both funded by the Social Security System.

The contributory pension system is made up of the old-age pension, with partial and full pensions available depending on the level of contributions made. The non-contributory pension system is otherwise known as the basic social security pension, providing a basic pension to people needing financial support.

Severance Pay

If an employee has been dismissed due to structural, technological, or market-related reasons, they may be eligible for severance pay. This is payable at the rate of:

Basic Wage BracketSeverance Pay
1–7 times the minimum wage30 days’ wages for every year of service
7–18 times the minimum wage15 days’ wages for every year of service
Above 18 times the minimum wage5 days’ wages for every year of service

Supplementary Employee Benefits in Mozambique

There is a range of supplementary employee benefits that we’d recommend you consider offering your workers in Mozambique. Additional benefits can significantly improve staff retention and increase the chances of potential applicants applying for new roles.

Some examples of supplementary employee benefits include:

  • Private pension schemes
  • Enhanced leave packages
  • Performance bonuses
  • Flexible working
  • Company car
  • Advanced training opportunities
  • Transport, housing, or food expenses

Optimize Employee Benefits with Remote People

Remote People can help simplify hiring in Mozambique with our Employer of Record services.

Partnering with a qualified EOR provider can help you save employment costs and ensure compliance by allowing a certified, experienced provider to take on the legal responsibility of hiring new staff in Mozambique. They’ll handle employee benefit compliance, some tax obligations, and even payroll tasks.

Doing business in Mozambique can be much easier with a qualified EOR provider to help. Remote People helps you hire and manage talent compliantly, so you can focus on growing your business. Contact us today to learn more.