Mozambique PEO Services

Mozambique’s range of natural resources include coal, graphite, iron ore, titanium, apatite, marble, bentonite, bauxite, kaolin, copper, gold, rubies, and tantalum. Mozambique holds some of the world's largest untapped coal deposits.

Despite facing natural and socio-political challenges, Mozambique's economy regularly retains its position as one of the most dynamic, often recording gross domestic product (GDP) growth propelled mainly by foreign direct investment and increasing public expenditure.

Working Hours

• The normal working period cannot exceed forty-eight hours a week and eight hours a day.
• Without prejudice to the provisions of the previous number, the normal daily work period may be extended up to 9 hours, whenever the worker is granted half a day of complementary rest per week.
• By collective labour regulation instrument, the normal daily working period may be exceptionally increased up to a maximum of 4 hours without the weekly working time exceeding 56 hours, only exceptional and overtime work provided for reasons of force majeure.
• The average duration of 48 hours of work per week must be calculated by reference to periods of up to 6 months.
• The calculation of the average duration of weekly work, referred to in the previous number, can be obtained by means of compensation for the hours previously worked by the worker, through the reduction of working hours, daily or weekly.
• Establishments dedicated to industrial activities, except for those working in shifts, may adopt the normal working time limit of 45 hours per week to be carried out 5 days a week.
• All establishments, except for services and activities aimed at satisfying essential needs to society, as well as establishments selling direct to the public, may, for reasons of economic conditioning or other reasons, adopt the single schedule practice.

Holiday / Sick Leave

• The worker is entitled to paid vacation under the following terms:
  • 1 day of vacation for each month of effective work, during the first year of work
  • 2 days of vacation, for each month of effective work, during the second year of work
  • 30 days of vacation for each year of effective work, from the third year onwards
• The duration of the vacation period for workers with a fixed-term contract of less than 1 year and more than 3 months will correspond to 1 day for each month of effective service.
• Holidays that occur during the vacation period are not counted as vacation days.
• Sick days do not count as vacation days, when the illness, duly certified by the competent entity, has been declared during the vacation period and the employer is immediately informed.
• In the case provided for in the previous number, the worker will resume, after discharge, the enjoyment of the missing vacation period, if the employer does not set another date for its resumption.

Maternity / Paternity Leaves

• The worker is entitled, in addition to normal vacations, to maternity leave of sixty consecutive days, which may begin 20 days before the probable date of delivery and may be taken consecutively.
• The sixty-day leave, referred to in the previous number, also applies to cases of full-term or premature birth, regardless of whether it was a live birth or a stillbirth.
• In situations of clinical risk for the worker or the unborn child, preventing the exercise of the activity, the worker enjoys the right to leave, prior to childbirth, for the period necessary to prevent the risk, established by medical prescription, without prejudice to the leave for maternity.
• In case of hospitalisation of the mother or child during the period of leave following childbirth, this period is suspended, upon communication from the worker to the employer, for the duration of the hospitalisation.
• The father is entitled to 1 day paternity leave, every 2 years, which must be taken on the day immediately following the birth of the child.
• The worker who intends to take paternity leave must inform, in writing, to the employer, before or after.

Taxes

• INSS (7%-rate in accordance with the Labour Law, and from this amount 3% of the employee's base salary is deducted, 4% of the base salary paid by the employer)
• (Individual income tax), this tax is deducted observing the limits of the gross monthly salary ranges according to the withholding tax table referred to in article 65 of law 20/2013 of 23 September, and according to the withholding calculation application (1st category) of the Tax Authority of Mozambique.

Cultural Information

Mozambique has a population of around 31 million people. The official language is Portuguese, however approximately only half of people speak it; some of the nation’s other common languages include Makhuwa, Changana, Nyanja, Ndau, Sena, Chwabo, and Tswa.

Mozambique has a diverse religious populace, with around 26% being Roman Catholic, 18% Muslim, and other religions making up other major groups throughout the country.

Traditional music, rituals, ceremonies, dance, and food are key parts of Botswana’s culture.

Impacts from COVID-19

Mozambique’s economic growth was impacted by the COVID-19. Digital transformation accelerated in some industries as businesses began implementing remote working practices. In some cases, these changes have continued to be commonplace.