Makhuwa, Chngana, Nyanja, Ndau, Sena, Chwabo and Tswa

UTC + 02:00

Undoubtedly, payroll is a critical process for any organization. The pay cycle refers to the period an organization pays its employees, which can vary depending on the pay frequency that the organization chooses to adopt.

Mozambique follows a monthly payroll cycle.

Mozambique does not mandate employers to provide bonus payments to employees.

There is no single minimum wage in Mozambique, but numerous industry sectors have a nationally mandated monthly minimum wage or have at least one subsector with its own nationally mandated minimum wage, or have a generally applicable sector rate and at least one subsector rate that is nationally mandated.

Mozambique’s monthly minimum wage has increased in the eight sectors and subsectors, effective May 1, 2023.

Following are the increases in the monthly minimum wage that the government has announced.

Monthly Minimum Wage

Agriculture, livestock, hunting, and forestry : 5 800.00 MTn

Industrial Fishing : 6 220.75 MTn

Mineral Extraction Industry - Large Industries : 12 020.20 MTn

Manufacturing Industry - Industrial Sector : 8 747.50 MTn

Electricity and Water Production and Distribution - Large companies : 10 745.00 MTn

Construction : 7 409.08 MTn

Non-Financial Services Activities : 8 574.00 MTn

Financial services - Banks and insurance companies : 16 061.32 MTn

Financial Services - Microfinance : 14 241.29 MTn

Hotel industry : 7 715.00 MTn

Public administration, defense, and security : 8 758.00 MTn
 

The standard working hours in Mozambique are 8 hours per day and 48 hours per week. However, employees are permitted to work overtime only for excessive workload or material reasons. The overtime duration cannot exceed 8 hours per week, 96 hours per quarter, and 200 hours per year.

Tax records generally must be kept for a minimum of 10 years.

Employers must keep records of the payroll list or the relevant payslips. Tax and social security payment forms must also be kept on file.

All jobs must be advertised in non-discriminatory terms. Ads should set out the basic terms and conditions for recruitment and hiring, including the type of employment contract, the workplace, and the work schedule (ie, full-time or part-time).

Local employees must give the following during onboarding:

• Candidate information (Name, Address, Nationality, and Date of Birth)
• Mozambique National Identity card

Additionally, expat employees must provide the following:

• Work permit
• Valid passport
• Proof of yellow fever vaccination
• Proof of educational qualification
• Passport size Photograph
• CV
• Invitation letter from company
• Income tax return

Probation period is as follows:

• 180 days for mid-level and senior technicians and employees engaged in leadership and management positions jobs,
• 90 days for employees as a whole

The government recognizes nine public holidays in Mozambique. Employers must provide employees with paid leave on these days.

The public holidays are:

• Jan. 1 and Jan. 2: New Year's Day
• Feb. 3: Mozambican Heroes' Day
• April 7: Mozambican Women's Day
• May 1: International Workers' Day
• Jun. 25 and Jun. 26: Mozambique's Independence Day
• Sept. 7: Lusaka Agreement's Day
• Sept. 25: Mozambique Armed Forces' Day
• Oct. 4: Peace and Reconciliation Day
• Dec. 25: Family Day

Whenever a public holiday falls on a Sunday, work is suspended the following Monday.

Employees are entitled to the following periods of paid annual leave:

• one day for every month of actual service, during the first year of service;
• two days for every month of actual service, during the second year of service
• 30 days for every year of actual service, from the third year onward.

Regarding medical leave, per the Labour Law, employers must grant sick leave for an uninterrupted period of up to 15 days, or five non-continuous days in one quarter, after which they can refer the employee to a health board to determine their capacity to work. In addition, social security regulations establish that employees are entitled to up to 365 continuous days of sick pay under the social security system in case of a non-occupational illness or an accident. Therefore, employees who fall ill or suffer a non-work-related accident can receive sick pay under the Social Security system. The employer need not pay their salary during this absence.

Female employees receive paid maternity leave of 60 days, which may begin up to 20 days before the due date. Benefits are paid through Mozambique’s social security system. Employees receive 100% of their average daily earnings if they have made at least 12 months of contributions in the 18 months before the expected due date.

When an abortion or a miscarriage occurs more than seven months before the anticipated birth, female employees may be granted periods of convalescence.

Male employees are entitled to one day of paternity leave every two years; it must be taken the day immediately following the birth.

Student employees are employees who work under the authority and direction of an employer and have permission from their employer to attend the course at an educational establishment to develop and improve their skills, particularly their technical and occupational skills.

Maintaining student employee status is conditional upon successful school results, in the terms set down in specific legislation.

Student employees have the right not to attend work during examination periods, without loss of remuneration, provided they shall give their employer advance notice of at least seven days.

The employer may provide the employee unpaid leave for such period as the parties agree, provided that the employee has previously taken the annual holidays to which the employee is entitled in that calendar year.

Employees are entitled to up to five days for the death of the employee’s spouse, father, mother, children, stepchildren, siblings, grandparents, stepfather, or stepmother.

Employees are entitled to up to two days for the death of the employee’s parents-in-law, uncles, aunts, cousins, nieces, nephews, grandchildren, sons-in-law, daughters-in-law, brothers-in-law, and sisters-in-law.

Employees are entitled to five days of marriage leave.

1. A fixed-term employment contract by the employee shall require prior notice of at least thirty days.

2. permanent employment contract by the employee shall require prior notice in accordance with the following time periods:

   • fifteen days, where the period of service is greater than six months but not more than three years;
   • thirty days, where the period of service is greater than three years.

Severance pay in Mozambique is calculated as follows:

• One to seven times the national minimum wage: receive 30 days of pay per year of service.
• Eight to ten times the national minimum wage: receive 15 days of pay per year of service.
• 11-16 times the national minimum wage: receive 10 days of pay per year of service.
• More than 16 times the national minimum wage: receive three days' pay per year of service.

Foreign workers must have a visa to enter Mozambique unless they are from Angola, Botswana, Brazil, Cabo Verde (Cape Verde), Eswatini (Swaziland), Guinea-Bissau, Malawi, Mauritius, Portugal, South Africa, Zambia, or Zimbabwe in which case, no visa is required.

Individuals wanting to work in Mozambique must obtain work and residence permits. The residence permit is called a DIRE (identification document of a foreign resident).

1. Criminal records:

   Under the Labour Law, when appointing an employee or during an employment agreement, employers cannot require the employee to provide information about their private life (including their criminal record), except where the law or particular nature of the job demands. If this is the case, the employer must provide the employee with the reasons in writing beforehand.

2. Medical history:

   Under the Labour Law, employers may require job applicants or employees to undergo or submit to medical tests or examinations for admission or performance of an employment contract to confirm the individual's fitness for work. However, the medical practitioner responsible for the medical tests or examinations cannot provide information to the employer other than that relating to the individual's fitness or unfitness to work.

   Under Article 53 of Law 19/2014, employees cannot be tested for HIV and AIDS and related medical history unless the employee freely and expressly consents.

3. Drug screening:

   Under the Labour Law, employers may require job applicants or employees to undergo or submit to medical tests or examinations for admission or for the performance of an employment contract to confirm the individual's fitness for work. However, the medical practitioner responsible for the medical tests or examinations cannot provide information to the employer other than that relating to the individual's fitness or unfitness to work.

   Under Article 53 of Law 19/2014, employees cannot be tested for HIV and AIDS and related medical history unless the employee freely and expressly consents.

4. Credit checks:

   Under the Labour Law, when appointing an employee or during an employment agreement, employers cannot require the employee to provide information about their private life – including their credit status – except where, by the law or the job, the particular nature of the job so demands, and provided that the reasons for the requirement are stated in writing beforehand.

5. Immigration status:

   Employers must confirm the nationality and immigration status of all employees.

6. Social media:

   According to the Labour Law, employers must respect employees' right to privacy – particularly their right to keep their personal lives private. The right to privacy relates to accessing and disseminating matters relating to employees' private lives. It implies employers cannot discriminate against employees based on their private lives (including personal information on social networks).

7. Other:

   Other background checks and inquiries must be based on the employer's need to confirm an employee's suitability for the job. They are permitted only where the law or particular nature of the job demands and provided that the reasons for the checks and inquiries are stated in writing beforehand.