When you think about adding new employees to your company, you have to consider all aspects of an offer, including compensation and benefits. Unfortunately, this step can prove even more difficult in a new country where you’re not sure of the employment compliance laws, hiring process, and other factors.
Instead of learning Mozambique’s compensation laws and coming up with your own benefit management plan, remember that G-P can help. We’ll hire employees who work on your behalf, and we’ll use our Mozambique compensation and benefit outsourcing services to take on all matters of compliance.
Mozambique Compensation Laws
Mozambique approved new statutory minimum wages in 2019 that vary based on sector and have since increased. The country has 17 sectors and sub-sectors. Before you hire and onboard employees, you should research the Mozambique compensation laws for your sector. Collective bargaining agreements (CBAs) can also dictate a separate minimum wage for your industry.
Guaranteed Benefits in Mozambique
Your Mozambique benefit management plan must include guaranteed benefits required by law to stay compliant. All employees should get paid time off for the country’s nine national holidays. They should also receive paid annual leave based on their years of employment:
- First year of employment: One day per month
- Second year of employment: Two days per month
- Third year of employment and up: 30 days
Female employees should generally receive 60 days of maternity leave, which they can take up to 20 days before their due date. Mothers are also entitled to up to 30 days of explained absences each year that they can use for emergencies such as a sick or hospitalized child. Fathers in Mozambique get one day of paid paternity leave.
Mozambique Benefits Management
Once you draft a Mozambique benefit management plan, you need to discuss the best way to disperse those benefits to your employees. In addition to providing guaranteed benefits, you should add supplemental benefits that will encourage better retention rates and attract top talent to your job postings.
For example, Mozambique operates under a public/private healthcare system, but the country does not have many doctors and nurses, especially in rural areas. Employers may choose to provide an additional healthcare plan or a stipend for residents to find their own plan. Other companies purchase annual flights to Portugal for employees, even if they do not have family there.
Restrictions for Benefits and Compensation
Foreign companies are restricted by the incorporation process when trying to give out benefits and compensation. You must set up a subsidiary in Mozambique before you can hire employees, add them to your payroll, and come up with a compensation and benefit plan.
G-P can provide Mozambique compensation and benefit outsourcing services to make your expansion easier. With our Employer of Record solution, you won’t have to incorporate before offering compensation and benefits to employees. We’ll take care of paying your employees and giving them the benefits they deserve in a compliant manner.
Choose G-P Today
G-P can help make your expansion easier through Mozambique benefit and compensation outsourcing. Reach out to us to learn more.