Capital: Maputo
Population: (2022 est.) 31,616,000
Monetary Unit: Mozambican metical
Language(s): Portuguese
Mozambique, a scenic country in south-eastern Africa. Mozambique is rich in natural resources, is biologically and culturally diverse, and has a tropical climate. Its extensive coastline, fronting the Mozambique Channel, which separates mainland Africa from the island of Madagascar, offers some of Africa’s best natural harbours.
The public holidays in Mozambique are as follows;
Date Holiday
- 1 Jan New Year’s Day
- 2 Jan New Year Holiday
- 3 Feb Heroes’ Day
- 7 Apr Women’s Day
- 1 May Workers’ Day
- 25 Jun Independence Day
- 26 Jun Independence Day Holiday
- 7 Sep Lusaka Peace Agreement Day
- 25 Sep Armed Forces Day
- 4 Oct Peace and National Reconciliation Day
- 25 Dec Family Day
Probation period is as follows; 180 days for mid-level and senior technicians and employees engaged in leadership and management positions jobs, 90 days for employees as a whole
: In general, employees are entitled to:
- first year of employment: one day of paid leave per month.
- second year of employment: two days of paid leave per month.
- third year+: 30 days of paid leave.
Female employees are generally eligible for 60 days of maternity leave, which can begin up to 20 days before the due date. They are also generally entitled to up to 30 days of explained absences per year, which can be used for things like hospitalization of a child.
Fathers are entitled to one day of paid paternity leave.
Employees are generally eligible for up to 15 days of sick leave, or 5 non-consecutive days per quarter. If the employee needs more time s/he must go to the health board. Social security will pay for 365 days of continuous sick leave for a non-occupational illness or accident.
In general, employees on indefinite-term contracts are eligible for severance pay. Employees whose wages are:
- 1 to 7 times the national minimum wage: receive 30 days’ pay per year of service
- 8-10 times the national minimum wage: receive 15 days’ pay per year of service
- 11-16 time the national minimum wage: receive 10 days’ pay per year of service
- 16+ times the national minimum wage: receive 3 days’ pay per year of service
13th / 14th Month Pay: There is a statutory 13th month salary for the public service. There is no evidence that this also applies to the private sector.
A valid passport and entry visa are required to enter Mozambique. South African and Zimbabwean passport holders are exempt from the visa requirement for entries of up to 30 days.
Business visas, which are multiple-entry visas valid for three months. These visas may be renewed for an equal period. Each entry may be for up to 30 days. Residence/work visas, which are single-entry visas valid for 30 days and are extended for the duration of the work permit.
These visas are provided outside Mozambique if the individual wants to enter Mozambique with the intention of residing or working. Foreign nationals must obtain a work permit to work in Mozambique, which is valid for up to two years and is renewable. Companies may employ foreign nationals who do not require a work permit (through a communication to the Ministry of Labor) for the same period, up to a certain percentage of the total work force.
Foreign nationals who are self-employed individuals, shareholders, or representatives of shareholders in Mozambique must also obtain a work authorization in their personal capacity. After the period of validity for a work authorization or work permit expires, an individual may reapply for such items. Work visas are valid for the period of duration of the work permit (maximum two years), with multiple entries
Type of Visa/Permit
Business Visa: Foreigners who wish to enter Mozambique for business purposes such as meetings, conferences etc. must obtain a business visa. This is valid for 3months. The documents required to obtain a business visa are as follows;
- Valid passport
- Passport size photograph
- Proof of yellow fever vaccination
- Air ticket
- Cover letter from the company
- Income tax returns
- Invitation letter from the company
Residence/Work Visa: Foreigners who wish to seek employment in Mozambique must apply for a Residence/Work visa. This is valid for 30 days. The documents required to obtain a residence/work visa are as follows;
- Valid passport
- Passport size photograph
- Proof of yellow fever vaccination
- Air ticket
- Proof of educational qualification
- CV
- Employment contract
- A statement issued by the tax authority declaring that the company is compliant with its duty to pay the relevant taxes
- A statement from the National Institute of Social Security (INSS) confirming the company’s compliance with any applicable regulations for social security contributions
Work Permit: Foreign nationals must obtain a work permit to work in Mozambique. This is valid for 2 years. The documents required to obtain a work permit in Mozambique are as follows;
- Valid passport
- Passport size photograph
- Proof of yellow fever vaccination
- Air ticket
- Proof of educational qualification
- CV
- Employment contract
- A statement issued by the tax authority declaring that the company is compliant with its duty to pay the relevant taxes. A statement from the National Institute of Social Security (INSS) confirming the company’s compliance with any applicable regulations for social security contributions.
To terminate an employee for just cause, the employer must provide a written indictment note to the employee and the trade union within 30 days of the fault. The employee has 15 days to respond and the trade union an additional five days to consul. Afterwards, the employer has 30 days to make a decision. Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice. In general, employees on indefinite-term contracts are eligible for severance pay. Employees whose wages are:
- 1 to 7 times the national minimum wage: receive 30 days’ pay per year of service
- 8-10 times the national minimum wage: receive 15 days’ pay per year of service
- 11-16 time the national minimum wage: receive 10 days’ pay per year of service
- 16+ times the national minimum wage: receive 3 days’ pay per year of service
According to the legislation, these benefits are required. These consist of the probationary term, yearly leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation. Social Security payouts are statutory benefits as well.
The work week in Mozambique has a 48-hour limit and a daily limit of 8 hours
Employees can work overtime with a limit of up to 200 hours per year with pay at a higher rate
Employees may be terminated under grounds set forth in the labor law and are generally entitled to at least 30 days’ notice.
Residents are taxed on their worldwide income. Non-residents are taxed on income arising in Mozambique. All individual income (employment income, capital gains, investment income, independent work, rental income, commissions, etc.) is subject to the below tax rates.
For non-Mozambican residents, the earned income tax is withheld and remitted by the employer or other payer at a definitive flat rate of 20% (in the majority of the income received). The following are the annual tax rates applicable to individual income:
Annual Income (MZN) Rate (%)
0 to 42,000 10%
42,000 to 168,000 15%
168,000 to 504,000 20%
504,000 to 1,512,000 25%
1,512,000 and above 32%
Social security contributions are payable monthly on all salaries, wages, regular bonuses, or other regular income, excluding meal subsidies. The employer contributes an amount equal to 4% of monthly salary, and the employee contributes 3% of monthly salary. The employer withholds employees’ contributions. Foreign employees may apply for exemption from registration with the social security system, provided they are contributing to a similar system in their home country.
Personal Deductions
After assessment of gross tax, resident taxpayers are allowed to deduct the following amounts. Deductions related to the individual and family status of the taxpayer:
MZN 1,800 for each married or single taxpayer – MZN 600 for one dependent, MZN 900 for two dependents, MZN 1,200 for three dependents, and MZN 1,800 for four or more dependents.
Deductions of tax credit for international double taxation.
Business Deductions
Deductions from business income depend on the taxation regime adopted by each taxpayer. For individuals that are obligated to maintain statutory accounts (turnover above MZN 2.5 million), the assessment of net income is obtained after deductions of various costs connected with the activity, which include, among others, staff costs, rents, depreciation of premises and equipment, fees paid to third parties for services, power and water consumption, travelling expenses of up to 10% of gross earnings, and expenses, in general, that are incurred in the normal course of the activity or business.
Under this limit of annual turnover (i.e. MZN 2.5 million), tax will be accessed according to the simplified taxation regime, under which no costs are deducted against income and the total turnover is taxed according to certain coefficients: 0.2 for sale of goods and the merchandise sector, 0.2 for the accommodation and food and beverage sector, and 0.3 on revenue from all other sectors of activities.
VAT is chargeable on the sale of most goods and services as well as on imports. The standard rate is 17%.
The WHT on various types of payments are as follows (the tax is a final tax for non-residents except for on rental income):
Payment Residents Non-residents
Dividend 0%/10%/20% 10%/20%
Interest 0%/20% 20%
Royalties 20% 20%
Technical Service Fees 0% 20%
Rent 20% 20%