Contracts of employment

  • The two most common types of contracts are:
    1. the fixed-term contracts and
    2. the unlimited- duration contract.
  • The fixed-term contract cannot be celebrated for a period exceeding two years, which can be renewed twice.
  • The fixed-term contract may be transformed into an unlimited duration contract when the period of its maximum length is exceeded or when the number of renewals allowed is surpassed.
  • Employment contracts are required to stipulate the following
Employer & employee’s identification Job qualification Place of work Work schedule
Duration of the contract & conditions for renewal Amount, form & timing of salary payments Start date, signature date & termination date Grounds for hiring an employee on a fixed- term basis

Working hours and overtime

  • The general rule is that an employee works a maximum number of 48 hours a week and 8 hours a day, leaving 1 day a week of mandatory rest, which in principle should be a Sunday.
  • The maximum number of hours an employee works a day may be increased to 9 hours if the employer grants the employee an additional half a day’s rest a week, thus making the maximum number of hours a week increase to 49.5.
  • The table displayed below lists applicable hourly rates for extra-hours and exceptional hours.
Hours performed during Applicable hourly rate
Complementary rest period (exceptional
hours)
2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days
Holidays (exceptional hours) 2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days
Mandatory rest period (exceptional hours) 2.00 x Usual hourly rate of pay + 1 day’s rest within the following 3 days
Working day (extra-hour)-until 8.00 PM 1.50 x Usual hourly rate of pay
Working day (extra-hour)-after 8.00 PM 2.00 x Usual hourly rate of pay

Employee leave

  • The number of paid annual leave varies according to the length of service.
Length of service 1st year of employment 2nd year ≥ 3 years
Number of days 1 per month 2 per month 30 per year (weekends included)
  • Holidays and duly certified periods of illness cannot be considered as vacation leave.
  • If agreed in writing by the employer and the employee, paid vacation can be postponed up to a maximum of 15 days per 12 months of work.
  • Yet, an employee may not accumulate more than 60 days of paid vacation in 1 year, the days in excess shall be deemed to have expired.

Duties and rights

1.Duties

  • Employees are subject to the following duties
To respect and treat with propriety and loyalty their employer, their hierarchical superiors, their work colleagues and all other persons who they are in contact or come into contact with the enterprise To go to work regularly and punctually
To obey the lawful orders and instructions of the employer, the employer’s representatives and the employee’s hierarchical superiors, and to perform all other obligations arising from the employment contract, except those that are illegal or are contrary to their rights and guarantees To respect professional confidentiality and in no case disclose information regarding the organization, production methods or business of the enterprise or establishment
To be loyal to the employer, in particular, not to compete with the employer either directly or for the account of a third party, and to contribute to improving the system of safety, hygiene and health at work to use properly and keep in good condition the work-related property and equipment entrusted to them by the employer Not to use the workplace or the equipment, property, services or tools of the enterprise for personal or non-work-related purposes without authorization from the employer or the employer’s representative
To perform their work with enthusiasm and diligence To protect the property of the workplace and the production output against any damage, destruction or loss

2.Rights

  • In Mozambique, workers have notably the following rights
To be assured of a job according to their abilities, their technical and vocational preparation, the requirements of the workplace and the national economic development possibilities To be assured of job stability, whilst performing their duties under the terms of their employment contracts, collective labour regulation instruments and the applicable legislation
To be treated correctly and respectfully, being punishable by law all acts against the honour, good name, public image, private life and dignity of employees To be guaranteed daily and weekly rest periods and paid annual holidays
To enjoy suitable measures of protection, safety and hygiene at work in order to ensure their physical, moral and mental integrity To compete for access to higher positions according to their qualifications, experience, work results, assessments and requirements of the workplace
To freely associate in professional organizations or trade unions in accordance with Mozambique’s Constitution Report to the General Labour Inspectorate or authorities with labour jurisdiction whenever their rights are threatened
To benefit from medical and medicinal aid, and to receive compensation for accidents at work or occupational illness To enjoy adequate assistance in the event of disability and old age, in accordance with the law
The employers cannot assign works to female employees that might be harmful to their health or their reproductive functions, or dismiss, punish or otherwise cause prejudice to them for reasons of alleged discrimination or exclusion Both male and female employees shall be respected and any act against their dignity shall be punished by law, and any employee at the workplace who carries out acts against their dignity shall be subject to disciplinary proceedings
Female employees are entitled to maternity leave of 60 consecutive days, which may start 20 days prior to the expected delivery date and may be enjoyed consecutively Fathers are entitled to paternity leave of one day every two years. Such leave should be taken on the day immediately following the birth.
Working mothers’ absences (maximum of 30 days of absences per year) to take care of their minor children in cases of accident or illness, shall be considered justified absence and shall not result in any loss of rights, except as regards remuneration Employers must provide employees with good physical and moral conditions at work

Termination of employment and employment disputes

  • The dismissal of employees is regulated.
  • A formal termination procedure must be carried out (e.g. presence of disciplinary proceedings).
  • The legislation provides reasons for termination, such as:
A serious violation of the employee’s duties Termination because of the needs of technological,  management or financial reorganization of the company Termination for grounds Termination for objective reasons (lack of economic conditions for paying salaries)
  • In case of termination without cause or in breach of the applicable statutes, employees have to be compensated according to the following rules
Fixed-term contract Unlimited-duration contract
Amount of the compensation = Salary range (expressed in minimum wages) Amount of the compensation =
Salaries that the worker would have received until the end of the contract [x1;x7] 30 days’ salary for each year of employment
[x8;x10] 15 days’ salary for each year of employment
[x11;x16] 10 days’ salary for each year of employment
≥x16 3 days’ salary for each year of employment
  • Employees may challenge the employer’s decision to terminate the contract by resourcing to the General Labour Inspectorate, by way of requesting mediation between such entity and the employer and employee.
  • If that fails to get a result, worker can go to courts.
  • In the event of the termination being disputed, and the employee being successful in legal action brought against the employer, the employee is due compensation in the amount corresponding to 45 paid salary days of work per year and the same may further opt to be reinstated in his or her employment.
  • Investors can recruit foreign workers through one of the following routes
Hiring under the quota system Hiring outside the quota system (hiring with authorization) Short-duration hiring
Conditions Foreigners cannot exceed:

  1. 5% of all employees in large companies
  2. 8% of all employees in medium companies
  3. 10% of all employees in small companies
Hiring outside the quota system requires more time and is much more complex (a justification and an  authorization from the Ministry of Labour are required) Expatriates have to work less than 30 days. It can be extended up to 90 days a year.
Required documentation to hire an expatriate
  • Application
  • Certified copy of passport (all pages) of the relevant expatriate employee without any valid visa for Mozambique
  • Certificate of academic equivalence issued by the Ministry of Education and Culture
  • Copy of the relevant employment contract or the document that evidences the existence of a contractual relationship
  • Certificate of academic or technical-professional qualifications of the expatriate to be hired and document evidencing his or her professional experience
  • Clearance certificate issued by the Mozambique Revenue Authority confirming that the employer has no outstanding taxes
  • Clearance certificate issued by National Institute of Social Security confirming that the employer has no outstanding debts
  • List of workers, approved by MITESS
  • Evidence of payment of a fee in the amount of 5 minimum salaries in force for the relevant industry
  • Application
  • Certified copy of the full passport (all pages) of the relevant expatriate employee without any valid visa for Mozambique
  • Copy of the relevant employment contract or the document that evidences the existence of a contractual relationship
  • Clearance certificate issued by National Institute of Social Security confirming that the employer has no outstanding debts
  • Certificate of academic or technical-professional qualifications of the expatriate to be hired and document  evidencing his or her professional experience
  • Clearance certificate issued by the Mozambique Revenue Authority confirming that the employer has no outstanding taxes
  • Certificate of academic equivalence issued by the Ministry of Education and Culture
  • List of workers, approved by MITESS (“Ministério do Trabalho, Emprego e Segurança Social”).
  • Opinion of the relevant union body of the sector of activity approving the hiring of such worker.
  • Evidence of payment of a fee in the amount of 10 minimum salaries in force for the relevant industry.
  • Application
  • Certified copy of the passport (all pages) of the  relevant expatriate employee without any valid visa for Mozambique
  • Reason for request
  • Certified copy of company’s operating licence
  • Evidence of payment of a fee in the amount of 5 minimum salaries in force for the relevant industry
  • Employers seeking to employ expatriate staff are required to apply for work permits from the Director of Immigration Department.
  • In the event of termination of employment, MITESS and the National Migration Services have to be informed within 15 days.
  • Employment authorization is not required when hiring under investment projects. The employer simply needs to inform MITESS about the hiring of the employee or employees in question within 15 days of their entry into the country.

 

  • Employment contracts with foreign citizens must be in writing and cannot exceed two years.
  • To get more info : click here

Employee minimum costs estimation calculator

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Minimum wages

  • The Government of Mozambique has set up minimum wages for the following occupations
Applicable to Employees working in /for Minimum monthly wage (MT)
Agriculture Agriculture sector 4,390.00
Livestock Livestock sector 4,390.00
Hunting Livestock sector 4,390.00
Forestry Forestry sector 4,390.00
Fisheries Industrial sea fishing activities 5,370.75
Fisheries Semi-industrial sea fishing activities 5,370.75
Fisheries Livestock sector 4,390.00
Industry & Mining Large companies 9,254.60
Industry & Mining Quarries & Sandbarsr 6,379.00
Industry & Mining Salt flats 5,318.60
Manufacturing industry Manufacturing activities 7,000.00
Bakery industry Livestock sector 4,390.00
Production/distribution of Electricity,Gas & Water BProduction/distribution of Electricity,Gas & Water 8,300.00
Small & Medium-sized Enterprises Small & Medium-sized Enterprises 6,760.00
Construction Construction sector 6,136.70
Non-financial services Non-financial services activities 6,850.00
Non-financial services Hospitality 6,478.00
Financial services activities Banking & Insurance sector 12,760.18
Bakery industry Livestock sector 4,390.00
Financial services activities Microfinance & microinsurance sector 11.336,93
Public Administration Public administration 4,255.00
Defence Defence sector 4,255.00
Security Security sector 4,255.00

Last update: April 2019

Social Security Contributions

  • Both employees (3% of the salary) and employers (4% of the salary) have to contribute to the National Institute of Social Security (INSS).
  • Expatriate employees that are member of a similar scheme in a foreign country can be exempted of contributions.

Payroll taxes

  • The firm must withhold at source the personal income tax due by workers.
*Disclaimer: Estimates of the “Cost calculator” are based on data provided by related local stakeholders. APIEX will not be liable for any computation made on outdated information.