How to hire remote employees in


In the next few minutes, we’ll clear up all your questions about hiring remotely in Mozambique: You’ll learn how you can hire there without setting up your own physical entity, spending thousands of dollars in fees, or wading into months of legal red tape. Shall we?

Country snapshot

Mozambican Metical (MZN)

What to know before you hire in 


Hiring in Mozambique can get complicated, at least unless you know what your options are. If you want to hire remote talent in Mozambique, you have two options: Hire people as contractors, or hire them as employees.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mozambique than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mozambique.

Taxes in 


Employer tax

Gross monthly remuneration

Individual tax


Paid Time Off (PTO)

Employees are entitled to 30 days’ leave per year. Employees accrue their annual paid leave during their first year of employment with an organisation at a rate of one day per month worked.

This doubles to two days per month in their second year.

Public Holidays

There are 10 public holidays.

Sick Days

Employees can get compensation for their time out of work due to illness through the National Social Security Institute.

Employees also may be eligible for benefits under Mozambique’s social security system. Eligible employees receive 70% of their average daily earnings for up to 365 days after a three-day waiting period.

Maternity Leave

Female employees are entitled to 60 days, which may begin up to 20 days before the due date; however, sick leave is considered a justified absence if the employee can provide a medical certificate.

Employees receive 100% of their average daily earnings if they have made at least 12 months of contributions in the 18 months before the expected due date

Paternity Leave

Male employees are entitled to one day of paternity leave, every two years; it must be taken the day immediately following the birth.

Parental Leave

No Info.

Other Leave

Employees in Mozambique may also be entitled to:

  • Shared parental leave
  • Carers leave
  • Specific provisions for parents of disabled children

Marriage Leave

No Info.

Bereavement Leave

In Mozambique, employee may receive 5 days of bereavement leave.


Termination Process

A mutual agreement by the employer and employee to terminate the employment relationship must be in writing and identify the effective date. Employment contracts can expire or be terminated by mutual agreement or by either party (with or without just cause).

An employment contract expires at the end of its term if for a fixed period, on the completion of work, or upon the death of the employer or employee.

Notice Period

An employer can terminate but he/she must provide prior notice 30 days before the date of termination & the employee is eligible to receive compensation in this case.

Severance Pay

Severance pay in Mozambique depends on the circumstances of the termination and the employee’s contract type.

  • fixed-term contract - employees who are terminated prior to their contract ending, but after the probationary period, the severance pay must be equal to the pay they would have received between the date of termination and the contract’s expiration date.
  • indefinite-term contracts - severance is dependent on the salary received by the employee.

Probation Period

The probation period in Mozambique is 90 days.

Employee requirements in 


Working Hours

The standard workweek in Mozambique is 40 hours a week and eight hour a day.


Overtime  in Mozambique of up to 200 hours per year is permitted, with compensation.

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