Home Employer of record Employer of record in Mozambique
Employer of record in Mozambique
You can employ people in Mozambique without setting up a company. We engage a vetted local partner as the locally registered legal employer in Mozambique, with SLONEC Advisory Group as your single contracting party in the UK. We cover contracts under Labour Law 13/2023, INSS contributions, IRPS income tax and the quota and authorisation rules for foreign staff.
Services we coordinate in Mozambique
Employer of record for energy, mining, logistics and development programmes across Mozambique, subject to current travel advice; payroll and compliance, working alongside local partners who handle local-language and on-the-ground matters; market entry support.
Employing people in Mozambique
- The Labour Law (Law 13/2023 of 25 August) replaced the 2007 law and came into force on 21 February 2024. Contracts must be in writing, except short fixed-term task contracts of up to 90 days.
- INSS: 7% of monthly pay, 4% employer and 3% employee. Employers register within 15 days of starting activity, and declare and pay between the 20th of the month and the 10th of the following month.
- IRPS: employee income tax withheld monthly and paid to the tax authority (Autoridade Tributária), on annual bands from 10% (up to MZN 42,000) to 32% (above MZN 1,512,000).
Foreign staff: quotas
Article 34 of the Labour Law lets employers hire foreign workers within quotas, by notifying the Labour Minister: 5% of the workforce for large employers, 8% for medium, 10% for small and 15% for micro employers. Hires above the quota need authorisation, while approved investment projects can follow their agreed percentages. Foreign staff also need the right visa and residence documents.
Who hires in Mozambique
Mozambique received about US$3.6 billion of foreign direct investment in 2024 (UNCTAD), much of it linked to liquefied natural gas projects in Cabo Delgado. Security conditions vary by region, and UK government travel advice currently advises against all travel to most of Cabo Delgado Province in the north and to some districts of Nampula and Niassa, so we check current official travel advice with you when planning roles and travel.
UK tax angle (general information, not advice)
The UK has no comprehensive income-tax treaty with Mozambique, so there is no treaty relief; unilateral UK relief may be available depending on the facts. The UK has no social security agreement with Mozambique. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and INSS contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment. Ask us for a proposal and we will look at your facts.
Pricing. Our employer of record service in Mozambique is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.
Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.
Frequently asked questions
Can I hire in Mozambique without a local company?
Yes, where we engage a vetted local partner as the locally registered legal employer, with SLONEC Advisory Group as your single contracting party.
What are the INSS rates?
4% employer and 3% employee, 7% in total.
How many foreign workers can an employer have?
Between 5% and 15% of the workforce depending on employer size, without separate authorisation.
When are INSS contributions due?
Between the 20th of the month and the 10th of the following month.
Is there a UK tax treaty with Mozambique?
No.
Do you work in Portuguese?
We work alongside local partners who handle local-language and on-the-ground matters, while SLONEC Advisory Group stays your single contracting party.
How much does it cost?
Our service fee is US$199 to US$399 per employee per month. Salary, employer contributions and other agreed employment costs are charged at cost on top. UK VAT or any local sales tax is payable on top where either applies, and we confirm everything in a written proposal.