MOZAMBIQUE PEO & EOR
Hire in Mozambique without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Mozambique today with Gibson Watts Global.
DID YOU KNOW
- Mozambique has one of the largest reserves of natural gas in Africa; the Rovuma Basin is a major project area with liquefied natural gas (LNG) developments.
- The island of Mozambique (Ilha de Moçambique) was the former capital and is a UNESCO World Heritage Site, with a rich mix of Swahili, Portuguese and African cultural heritage.
- The country’s coastline stretches some 2,700 km along the Indian Ocean, giving it significant port and maritime trade potential.
Forget software,
this is expansion
with a human touch
Mozambique EOR Services
A strategic gateway into Southern Africa
Mozambique, with its growing infrastructure development, natural resource investments and location beside major regional economies, offers opportunities for companies seeking presence in Southern Africa. But local regulations, labour law, social security, and regional variation can present challenges. Partnering with Gibson Watts Global as your Employer of Record in Mozambique enables you to outsource legal compliance, payroll, social contributions, hiring administration, and regulatory reporting – letting you focus on business growth in the region.
Working in Mozambique
Financial Year Dates
1 January to 31 December
Minimum Wage
Mozambique no longer has a single national minimum wage; instead, sector-by-sector minimum wages are negotiated and applied across 18 economic sectors/subsectors.
As of 1 April 2025, adjustments were approved for eight sectors with increases (ranging from ~150 to 1,820 MZN) retroactive to April 1.
Standard working hours
The standard workweek is 48 hours per week (8 hours per day, 6 working days) in many sectors.
Overtime
Overtime is allowed but regulated. Typically:
- Normal overtime: paid at +50% above normal wage
- Overtime on holidays or weekends (or rest days): paid at +100% (i.e. double) rates
Holiday Allowance
Employees are generally entitled to annual paid leave; the statutory baseline is 30 calendar days of paid leave after one year of continuous service.
Sick Leave
Workers insured under the social security scheme are entitled to sick leave benefits, subject to medical certification.
Maternity & Paternity Leave
Maternity leave: Eligible insured female employees receive a maternity benefit under INSS. The entitlement is generally 60 days paid leave at the average wage in the six months before leave, for insured women.
Paternity leave: The statutory law provides for limited paternity rights; in practice many employers grant a few days’ paternity leave though not always mandated.
Public Holidays
Mozambique observes public holidays including:
- New Year’s Day
- Heroes’ Day / Day of Heroes
- Women’s Day
- Labour Day
- Independence Day
- New Era Day
- Victory Day
- All Saints Day
- Christmas Day
Plus other national or religious holidays (e.g. Maputo Peace Day, local observances).
Social Contributions
Employer contribution: 4% of monthly wages to social security (INSS) for insured employees.
Employee contribution: 3% of monthly wages withheld by employer and remitted to INSS.
Combined mandatory social security contribution = 7% of wages, with no statutory ceiling.
Income Tax
Mozambique uses progressive personal income tax rates for resident employees, under IRPS (Imposto sobre o Rendimento das Pessoas Singulares)
Taxable Base (MZN) | Rate |
0 – 36,000 | 10% |
36,001 – 144,000 | 15% |
144,001 – 432,000 | 20% |
432,001 – 1,296,000 | 25% |
>1,296,000 | 32% |
Health Care
Mozambique’s public health system is delivered through the Ministry of Health, with public hospitals, clinics and health centres. Social security contributions help fund health benefits and some insured benefits (maternity, medical leave).
Visas
Foreign nationals / expatriates require a work visa or permit and residence permit to legally be employed. The employer or EOR generally undertakes the sponsorship or permit application processes.
13th salary?
Mozambique does not have a statutory 13th salary requirement. Employers are not obligated to pay an extra monthly salary at year end. Any bonuses, year-end payments or additional compensation must be agreed contractually or be part of sector/collective agreements.
Cultural Information
Mozambican culture is richly diverse, drawing on Portuguese colonial legacy and many indigenous traditions. In the workplace, formal respect is valued; using professional titles (Senhor / Senhora + surname) is common in initial meetings. Building personal relationships and trust is important, and communication may be more indirect in certain contexts.
Punctuality is expected in formal business settings, though tolerance for slight delays can exist depending on region and infrastructure. Dress norms lean toward business smart, with tropical adaptation in warmer regions. Hospitality is deeply embedded in culture – business meals, meetings and social interaction often go hand in hand in relationship building.