Mozambique has a population of 31 million people, with key industries including mining and agriculture. The standard corporate tax rate is 32% and the tax year corresponds to the calendar year. 

Labor and Payroll Considerations:

  • Standard work hours are 8 hours per day, 6 days per week. Overtime is limited to 200 hours per year
  • Work contracts must be written
  • Employers need to register themselves to the Commercial Registrar Office and Tax authority in order to have hiring capabilities
  • Employers must register new employees to the employment centre
  • Income tax and social security is withheld from employee pay
  • Mozambique uses a Pay-As-You-Earn (PAYE) system
  • Minimum wages are negotiated and vary at the sector level
  • Employers must abide by foreign worker quotas
  • Foreign workers need a work permit and residence permit

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