Gibson Watts Global: PEO & EOR Services

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.

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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.

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