Economic Overview, Rovuma Basin Mega-LNG & Indian Ocean Ports
Mozambique is one of the world's most significant emerging LNG export hubs, combining vast critical minerals with strategic Indian Ocean transshipment ports.
Key Economic Sectors
- Liquefied Natural Gas (LNG) & Offshore Energy: Massive deepwater natural gas extraction in Cabo Delgado and Coral South FLNG exports.
- Heavy Mineral Sands & Graphite Mining: World's top battery-grade natural graphite and titanium mining.
- Deepwater Port Logistics: Maputo Port corridor serving Southern African automotive and mineral trade.
Employment Contracts, New Labour Law (Law 13/2023) & Quotas
Regulated by the New Labour Law (Lei N° 13/2023).
- Foreign Worker Quotas: Strict statutory limits: maximum 5% expatriates for large enterprises (> 100 staff), 8% for medium (11–100 staff), and 10% for small firms (< 10 staff).
- Mandatory Portuguese Contracts: Must be in writing in Portuguese.
- Probation Period: Maximum 30 days for general workers, 90 days for technicians, and 180 days (6 months) for senior leadership.
Working Hours, Overtime & Rest Periods
- Standard Hours: 48 hours per week (typically 8 hours/day over 6 days, or 40–44 hours in commercial offices).
- Overtime Surcharges: Minimum 150% (50% premium) for daytime overtime; 200% (double time) for night overtime and on weekly rest days/public holidays.
Annual Leave (Up to 30 Days), Holidays & Maternity
Annual Paid Vacation (*Férias*)
- Year 1 of Service: 12 working days (1 day/month worked).
- Year 2 of Service: 24 working days (2 days/month worked).
- Year 3+ of Service: 30 working days per continuous year of service.
- Public Holidays: 10 official national public holidays.
- Maternity Leave: 90 consecutive days (12 weeks) fully paid maternity leave. Paternity leave is 7 paid days.
National Social Security (INSS 4% Employer) & IRPS Tax
| Statutory Scheme | Employer Share | Employee Share | Coverage |
|---|---|---|---|
| National Social Security (INSS) | 4.00% | 3.00% | Pensions, sickness, maternity & funeral benefits (7.0% total) |
Personal Income Tax (IRPS): Progressive rates from 0% up to 32% on taxable monthly income, remitted to the Autoridade Tributária.
Termination, Notice & Severance Indemnity under Law 13/2023
- Notice Periods: Minimum 30 days written notice for employer-initiated dismissals.
- Severance Pay: Calculated under Article 130 of the New Labour Law scaling based on monthly wage brackets and tenure (ranging from 20 to 45 days' wage per year of service).
Why Use an Employer of Record (EOR) in Mozambique
- Rapid Energy & Mining Deployment: Onboard petroleum engineers and logistics coordinators in Maputo or Pemba in days.
- Foreign Quota Compliance: Flawless alignment with national expatriate workforce percentage thresholds.
- INSS & IRPS Compliance: Automated management of 4% employer social security and monthly IRPS withholdings.