Hire a remote team in Mozambique

Hiring a remote team in a country as Mozambique comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Mozambique. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

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1. Hire a remote team in Mozambique with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Mozambique, particularly if you don't have established local relationships. You can hire employees in Mozambique effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Hire a remote team with Rivermate
Introduction
Hiring a remote team in your country
Cost of living
Cost of renting
Major industries
Hiring cost
Employment laws
Top skills
Economic landscape
Market size
Minimum wage

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Mozambique.As an employer of record, we help you hire employees and run payroll services in Mozambique, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Mozambique.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Mozambique or individually hire remote employees in Mozambique, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Mozambique services can best help your company!

3. Hire a remote team in Mozambique

Mozambique is a country in Southern Africa. In the 2020 World Bank Ease of Doing Business report, Mozambique ranks 138th out of 190 countries. After experiencing its first contraction due to the pandemic in 2020, Mozambique's economy is expected to gradually recover in 2021 with a 1.5% growth rate. However, significant harmful risks remain due to the uncertainty surrounding the Covid-19 pandemic.Mozambique intends to expand its massive power generation projects in order to meet the growing demand for adequate infrastructure to support growth and development. Mozambique's government is also looking forward to expanding the mining and tourism sectors, owing to the availability of diverse wildlife and pristine beaches. Major investments in road and port infrastructure are driving the expansion of the transportation sector. Mozambique has three major ports: Maputo, Beira, and Nacala. Mozambique's major industries include chemicals, food and beverages, petroleum products, textiles, glass, and cement.Mozambique has one of Africa's most versatile and dynamic economies, but human capital underdevelopment is limiting its growth and development. Despite the impact of the Covid-19 pandemic on unemployment, Mozambique's labor market is expected to tighten. Because today's economy is all about the need for skills, countries must begin investing in skill development. Africa has a huge digital skills gap, which limits economic opportunities and development; therefore, learning digital skills and in-demand skills is a must in today's world.

4. Cost of living in Mozambique

Mozambique's cost of living is $1042, which is 1.12 times higher than the global average. Mozambique was ranked 56th out of 197 countries in terms of cost of living and 172nd in terms of quality of life.Mozambique's average after-tax salary is $214, which is enough to cover living expenses for 0.2 months.Why does living in Mozambique cost 4.9 times the average salary? Because we have a reference point of a developed country lifestyle, and maintaining such a standard of living in some least developed countries is difficult and expensive. As a result, the costs of living in Mozambique for locals and expats differ significantly.

5. Cost of renting in Mozambique

In Mozambique, the cost of living for a family of four is estimated to be 170,860 MT, or $2730 per month.A single person's monthly living expenses in Mozambique are estimated to be 99,734 MT, or $1593 USD.The cost of living in Mozambique is low. Maputo, Mozambique's capital and largest city, is ranked 161 out of 209 cities in Mercer's 2020 Cost of Living Survey. Maputo's average cost of living is 57,766 MT ($923), placing it in the top 39% of the world's least expensive cities.Mozambique's Internet speed has steadily increased in recent years. With an upload speed of 9.15 Mbps and a download speed of 10.53 Mbps, it ranks 167th.In Mozambique, the average rent for a single person is estimated to be $508 or 31,793 MT per month.In Mozambique, the average rent for a family of four is estimated to be $826 or 51,695 MT per month.

6. Major industries in Mozambique

Aluminum, manufacturing, coal, petroleum, chemical, finance, cement, glass, telecommunication, textiles, forestry, food processing, and beverages are the primary industries in Mozambique.Agriculture, energy, industry, information technology, telecommunications, tourism, and logistics are the secondary industries in Mozambique.Mozambique's GDP is driven by the agricultural, financial, and construction sectors. Although agriculture employs 70% of the population, it still requires significant government assistance.Mozambique has an abundance of mineral reserves, including graphite, coal, rare earth piles, and rubies. The government is excited about expanding the mining sector and gradually transitioning into mineral processing.Mozambique has a high potential for hydroelectric energy, thermal power generation, natural gas, and renewable energy development.Mozambique's transportation sector is expanding, owing primarily to significant investments in road and port infrastructure.While the country observed Covid-19 restrictions, the information and communications technology sector became a substitute means of ensuring economic development continuity by providing support to businesses, education, health, and social activities. The main skills required in these sectors are data storage, cloud computing, and cybersecurity.

7. Hiring cost in Mozambique

Hiring employees always comes with costs that are likely to vary by location. In comparison to other countries, the cost of labor in Mozambique is relatively low. In Mozambique, the cost of hiring includes:- Recruitment expenses- Training costs- Hiring lawyers and accountants for taxes - Setting up a business entity in Mozambique- Screening checks- Publishing job advertisements on networking sites- Hiring a translator- Employing HR staff to handle hiring in Mozambique- Paying a third party for background checking - Opportunity costs

8. Employment laws Mozambique

The Mozambique Labour Law states that normal working hours cannot exceed 8 hours per day and 48 hours per week.Except for fixed-term employment contracts, employment contracts in Mozambique should be in writing.The maximum number of hours an employee can work per day may be increased to 9 hours only if the employer provides him or her with an additional half day of rest per week.Wages should be paid based on actual time spent at work and should be paid on a regular basis, such as weekly, monthly, or fortnightly.Employers should keep copies of relevant pay slips or payroll lists on file. Tax returns and social security payment forms should also be saved.

9. Top skills Mozambique

Skilled workers are critical to a country's future prosperity because they contribute to strong economic growth, which leads to more jobs and employment. As a result, the demand for highly skilled professional workers, as opposed to lower-skilled jobs, is constantly increasing. The following are the top in-demand skills in Mozambique in 2021:- Artificial Intelligence- Advertising - Translator - Virtualization and cloud - Project and data management- Finance services - Bank manager - Accounting - Communication skills - Critical thinking- Energy- Human resource management- Data analyst- Digital marketing- Public relations - Content strategist- Copywriter- Legal adviser- Proofreader - Telecommunication - Corporate assistant- Marketing manager - Investment analystThe top skills in various cities in Mozambique are as follows:Maputo: Maputo is the largest city in Mozambique. The top skills in Maputo are-- Program manager- Business strategy associate - Translator - Sales assistant- Marketing manager - Software engineerNampula:- Web developer- Financial accountant - Administrative assistant- Business development manager- UX/UI designerManica:- Technical advisor- Project director - Marketing manager - Network marketing

10. Economic landscape in Mozambique

In 2021, GDP is expected to grow by 2.3%, while inflation will rise by 5%. This rise is due to increased demand during the pandemic recovery phase. The main causes of the slowdown were a drop in tourism, construction, and transportation, as well as a drop in demand for export commodities. On the other hand, the global demand for commodities and improved domestic growth are expected to increase tax revenues and aid in the resumption of the economic consolidation system.

11. Market size in Mozambique

Information on the market size in Mozambique is currently unavailable at the moment.

12. Minimum wage in Mozambique

There is no national minimum wage. Wages are instead negotiated sector by sector. In 2019, the OTM estimated that a minimum wage of 19,600 meticais (297 US dollars at the time) would have been required to provide a basic basket of goods and services for an average household.