Mozambique
In the next few minutes, we’ll clear up all your questions about hiring remotely in Mozambique: You’ll learn how you can hire there without setting up your own physical entity, spending thousands of dollars in fees, or wading into months of legal red tape. Shall we?
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Country snapshot
CURRENCY
Mozambican Metical (MZN)
EMPLOYER TAXES
3%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Portuguese
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring in Mozambique can get complicated, at least unless you know what your options are. If you want to hire remote talent in Mozambique, you have two options: Hire people as contractors, or hire them as employees.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mozambique than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mozambique.
Employer tax
Gross monthly remuneration
Paid Time Off (PTO)
Employees are entitled to 30 days’ leave per year. Employees accrue their annual paid leave during their first year of employment with an organisation at a rate of one day per month worked.
This doubles to two days per month in their second year.
Public Holidays
There are 10 public holidays.
Sick Days
Employees can get compensation for their time out of work due to illness through the National Social Security Institute.
Employees also may be eligible for benefits under Mozambique’s social security system. Eligible employees receive 70% of their average daily earnings for up to 365 days after a three-day waiting period.
Maternity Leave
Female employees are entitled to 60 days, which may begin up to 20 days before the due date; however, sick leave is considered a justified absence if the employee can provide a medical certificate.
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
Paternity Leave
Male employees are entitled to one day of paternity leave, every two years; it must be taken the day immediately following the birth.
Parental Leave
No Info.
Other Leave
Employees in Mozambique may also be entitled to:
- Shared parental leave
- Carers leave
- Specific provisions for parents of disabled children
Marriage Leave
No Info.
Bereavement Leave
In Mozambique, employee may receive 5 days of bereavement leave.
Termination Process
A mutual agreement by the employer and employee to terminate the employment relationship must be in writing and identify the effective date. Employment contracts can expire or be terminated by mutual agreement or by either party (with or without just cause).
An employment contract expires at the end of its term if for a fixed period, on the completion of work, or upon the death of the employer or employee.
Notice Period
An employer can terminate but he/she must provide prior notice 30 days before the date of termination & the employee is eligible to receive compensation in this case.
Severance Pay
Severance pay in Mozambique depends on the circumstances of the termination and the employee’s contract type.
- fixed-term contract - employees who are terminated prior to their contract ending, but after the probationary period, the severance pay must be equal to the pay they would have received between the date of termination and the contract’s expiration date.
- indefinite-term contracts - severance is dependent on the salary received by the employee.
Probation Period
The probation period in Mozambique is 90 days.
Working Hours
The standard workweek in Mozambique is 40 hours a week and eight hour a day.
Overtime
Overtime in Mozambique of up to 200 hours per year is permitted, with compensation.
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