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POPULATION

34.6m

CURRENCY

MT (MZN)

CAPITAL CITY

Maputo

Overview

Mozambique, a country on Africa's southeastern coast, is known for its rich cultural heritage and diverse marine life. Its long Indian Ocean coastline is dotted with popular beaches as well as offshore marine parks. The Quirimbas Archipelago, a string of coral islands stretching for 250km, is a protected area known for its untouched beaches, dive sites and wildlife.

The country's economy is largely based on agriculture, mining, and tourism. Mozambique is a major exporter of coal, titanium, and natural gas. The country faces challenges related to poverty, infrastructure development, and political stability.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

Individual employment contracts must be in writing, be dated, and signed by both the employer and the employee. They must specify both parties' identities, the nature of the job, duties, place of work, contract duration, date of commencement, and other terms and conditions.

Fixed-term contracts for less than 90 days need not be in writing.

Failure to conclude the contract in writing does not affect the agreement's validity or the employee's rights. Moreover, this failure is presumed to be attributable to the employer, who will be subject to all its legal consequences.

Oral Agreements

While it is mandatory to conclude individual employment contracts in writing, failure to do so does not affect the agreement's validity or the employee's rights. Moreover, this failure is presumed to be attributable to the employer, who will be subject to all its legal consequences. A legal employment relationship exists where an employee works in exchange for remuneration to the knowledge of and without objection from the employer or when the worker is in a situation of economic subordination to the employer.

Fixed-term contracts for less than 90 days need not be in writing.

Implied Agreements

Mozambique's labor code contains no provisions on implied employment contracts. Individual contracts must be made in writing, but failure to do so does not affect the contract's validity or the rights acquired by the employee, and this failure is presumed to be attributable to the employer, who will be subject to all its legal consequences.

Working Hours

Regular working hours must not exceed 48 hours per week and eight hours per day. Daily working hours may be extended to 9 hours per day, provided that the employee is given an extra half-day of rest per week. The regular working hours of minors between the ages of 15 and 18 must not exceed 25 hours per week and are limited to a maximum of 5 hours a day.

Establishments engaged in industrial activity, except for those in which employees work shifts, may adopt a workweek of 45 hours spread out over 5 days in a week.

Under exceptional circumstances, working time may be extended to 56 hours a week by collective agreement.

Public Holidays

January 1 (New Year’s Day); February 3 (Heroes’ Day); April 7 (Women’s Day); May 1 (Workers’ Day); June 25 (Independence Day); September 7 (Victory Day); September 25 (Revolution Day); October 4 (Day of Peace and Reconciliation); December 25 Family Day (Christmas).

Probationary Period

An employee who is employed in a position that is considered a mid-level technician can be subject to a 3-month probationary period. Higher-level technicians or employees in leadership or management positions can be subject to a probationary period of up to 6 months. The probationary period must be explicitly included in the employment contract.

An employment contract can be terminated during the probationary period by either party without showing just cause and without any right to compensation unless this is otherwise stipulated. Either contracting party is obliged to give a minimum of seven days’ notice in writing to the other party.

Employment Termination/Severance

Notice Period

Advance notice in writing is required for terminating contracts. The length of the notice period depends on the reasons for termination.

In case of termination of a contract at an employee's initiative, advance notice of seven days is required if there are just causes for termination. In other cases, the notice period must be as follows:

  • 6 months to 3 years of permanent employment - 15 days
  • More than 3 years of permanent employment - 30 days
  • Fixed-term employment lasting more than 3 years - 30 days.

Employers can terminate employment contracts with prior notice of at least 30 days on the basis of structural, technological, or market-related reasons. If a contract is terminated during probation, advance notice of seven days is required in writing. No notice is required for dismissal due to gross misconduct.

Severance Benefits

Employees dismissed for structural, technological, or market-related reasons are entitled to severance benefits as follows:

  • Employees' basic wage is between 1 and 7 times the national minimum wage - 30 days' wages for each year of service
  • Employees' basic wage is between 8 and 18 times the national minimum wage - 15 days' wages for each year of service
  • Employees' basic wage is more than 18 times the national minimum wage - 5 days' wages for each year of service

Severance pay for termination of contract by employees is calculated as:

  • Permanent employee - 45 days of wages for every year of service
  • Fixed-term employee - remuneration that the employee would have earned between the termination date and the contract's expiry date

Compensation

Minimum Wage

All employees are entitled to minimum wage. The minimum wage is set annually at the industry-level by the government in agreement with the Consultative Commission on Employment.

Effective April 1, 2024, the current wage rates by industry are between MZN 4,941.68 (Mozambican metical) to MZN 17,881.32 per month.

Overtime, Holiday & Vacation Pay

Work performed over and above the regular daily working hours (eight hours a day) is considered overtime. Overtime that is performed up to 24 hours is paid at 150%. If the overtime is performed beyond 8 hours until the start time of the next normal working period, it is paid at 200%. An employee may perform up to 96 hours of overtime per quarter but no more than 8 overtime hours per week or 200 hours per year. Employers must maintain a record of overtime. Overtime work is paid as follows:

  • Performed until 8:00 PM - 150% of the regular wage rate
  • Performed after 8:00 PM - 200% of the regular wage rate.

Work performed on a weekly rest day, extra rest day, or public holiday is considered exceptional work. It is remunerated at twice the regular wage rate or a compensatory day off.

Annual leave is remunerated at the regular wage rate.

Immigration & Visas

Visas

Mozambique recognizes the following categories of non-immigrant visas:

  • Diplomatic visa - This visa is issued to foreign diplomats and their family members for a maximum of 90 days.
  • Courtesy visa - This visa is issued to representatives of foreign governments or international organizations.
  • Official visa - This visa is issued to foreign government officials.
  • Residence visa - This visa is issued to a foreign national who wants to settle in Mozambique. It is valid for a single entry lasting 30 days, which can be extendable to 60 days. Applicants must then obtain a residence permit.
  • Tourist visa - This visa is issued to foreign nationals visiting Mozambique for tourist or recreational travel for a maximum of 90 days.
  • Transit visa - This visa is issued to foreign nationals entering the country to reach their destination country. It is valid for a maximum of seven days.
  • Visiting visa - This visa is issued to foreign nationals who wish to enter for accepted purposes (other than tourism and transit). It is valid for 15 days, though it is extendable to up to 90 days.
  • Business visa - This visa is issued to foreign nationals for short-term business purposes not exceeding 30 days. It is extendable to 90 days.
  • Student visa - This visa is issued for entry to attend an officially recognized educational establishment. It is granted for 12 months but is extendable.
  • Work visa - This visa is issued to foreign nationals for temporary work. It is valid for 30 days but is extendable to 60 days.

These visas can be issued for single or multiple entries.

Work Permits

Employers (whether national or foreign) may hire foreign nationals (whether as employees or otherwise) when they have the relevant authorization from the Minister of Labour or from entities to which the Minister has delegated this competency.

It is forbidden to employ foreign nationals who entered the country on diplomatic, courtesy, official, tourism, visitor, business, or student visas. Employment of foreigners is limited to defined quotas (5-10%).

Foreign employees need to apply for work authorization and a work permit. They must submit an application to the Ministry of Labour with relevant supporting documents. Permits are issued for those who wish to work for more than 90 days in Mozambique. Only one extension is possible.

Population 34.6m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

39.3%

Urban Population

19.8%

Internet access

54.4%

Banking access

46%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Employees are entitled to paid annual leave as follows:

  • 1 day for every month of actual service, during the 1st year of service
  • 30 days for every year of actual service, from the 2nd year onwards

Fixed-term employees employed for more than 3 months but less than 1 year are entitled to holidays of 1 day for every month of actual service.

The employer can postpone annual leave for compelling reasons. Up to 15 days of annual holidays can be accumulated per year up to a maximum of 60 annual leave days in a year. The accumulated holidays must be taken during the year following that in which the limit is reached. Up to 30 days of annual leave can be taken in advance.

Sick Leave

Employers must grant sick leave for an uninterrupted period of up to 15 days in a year (or 5 non-continuous days in a quarter), after which an employer can refer the employee to a health board to determine their capacity to work.

Employees who have paid at least 12 months' social security contributions are entitled to 365 continuous days of sick pay under the social security system in case of a non-occupational illness or an accident. They must submit a medical certificate.

Maternity Leave

Female employees are entitled to a paid maternity leave of 90 consecutive days, which may commence 20 days before the expected delivery date. This leave shall apply equally to cases of full-term or premature births, regardless of whether it was a live birth or a stillbirth. If there is a clinical risk to the female employee or the child, she shall be entitled to a leave of absence before the birth without prejudice to the maternity leave. Mozambique National Institute of Social Security provides maternity benefits to insured employees who pay contributions. The allowance is paid at the rate of employee's average daily wage for up to 60 days.

Employees are paid their regular remuneration during maternity leave. Employers are forbidden from giving female employees work that is harmful to their health or their reproductive functions or to dismiss pregnant employees during maternity leave or up to 1 year after birth.

Paternity Leave

Fathers are entitled to 7 days of paid paternity leave every two years, and this must be taken on the day immediately following the birth. An employee who wishes to take paternity leave shall inform the employer in writing, before or after the birth.

Social Security

Pension

Mozambique's National Institute of Social Security, Instituto Nacional de Segurança Social (INSS), covers retirement benefits. The retirement age is 55 years for women and 60 years for men. Employees become eligible to receive a pension if they have paid contributions for at least 240 months. An insured employee may take retirement at any age if they have paid at least 420 months of contributions.

The monthly amount of pension is calculated as the insured employee's average monthly wages in the last five years multiplied by the number of contribution months, divided by 420. The minimum amount of the old-age pension is 90% of the lowest national minimum wage. If an employee has attained the retirement age and paid 120 contributions (but has not reached the 240 contributions threshold), they are eligible for a reduced pension at the rate of 50% of the regular pension.

Both employees and employers pay social security contributions.

Dependents/Survivors Benefits

Survivors are eligible to receive benefits if the deceased employee was entitled to a retirement or disability pension. Survivors include a spouse (aged 45 years for women and 50 years for men) and children under 18 years (or 25 years if studying). There is no age limit for disabled children. Both the spouse and children are eligible for 50% of the pension to which the deceased was entitled. Spouses who are under 45 years (women) and 50 years (men) receive temporary pension for 5 years.

If an insured person received a social insurance old-age or disability pension or had at least three years of coverage and at least six months of contributions in the 12 months immediately before death, their survivors would be eligible to receive a lump sum death grant equal to six times the deceased's average monthly remuneration in the 12 months before death.

In case of death due to a work injury or disease, the surviving spouse, cohabiting partner, or legally separated spouse receives 60% of the deceased's remuneration. In contrast, dependent children receive 25% of the deceased's remuneration. If there are no spouses or children, other survivors receive 15% of the deceased's remuneration. The maximum combined pension is 80% of the employee’s remuneration. Employers are responsible for paying these benefits.

Invalidity Benefits

In Mozambique, insured employees are entitled to disability benefits provided under the social security system if they become temporarily or permanently disabled due to a non-work-related accident or disease before reaching retirement age and paid 30 months of contributions in the five years before the onset of disability.

The sum of the benefits depends on the age of the employee and the number of contributions made.

In case of disability due to work-related accident or disease, employees are entitled to receive a pension or lump sum, dependent on the type and degree of disability. Employers also cover expenses for medical treatment, hospital care, prostheses, medicine, and transportation.

Minimum Age

The minimum age for employment in Mozambique is 18 years. Exceptionally, the employer may hire a minor who has reached the age of 15 to work with the authorization of their legal representative.

Minor workers under the age of 18 must not be engaged in unhealthy, dangerous work or work requiring a high level of physical strength. The regular working hours of minors between the ages of 15 and 18 shall not exceed 25 hours per week and are limited to a maximum of 5 hours per day.

Minors under 18 years of age can be employed after being medically assessed for physical strength, mental health, and ability to do their assigned work. The employer bears the costs of medical examinations for this purpose.

Employers can hire apprentices for work related to their specific vocational training, helping them build a career in a specific field. The length of the apprenticeship depends on the norms of the profession. However, children under 12 years old are not allowed to take part in apprenticeships.

Unemployment 3.5%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

78.9%

Labor force population share

52.3%

Female share of labor force

44%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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