Mozambique's financial freedom score is 51.3, ranking it at 142 in the 2022 Index. Mozambique is categorized as 32nd of 47 countries in Sub-Saharan Africa. From 2017, the country's financial growth rose, fell in 2020, and recovered in 2021. Over the last five years, the economic freedom trend is positive and has experienced a gain of 1.4 points and due to the financial status and government spending, Mozambique has retained in the "Mostly Unfree" category over three subsequent years. Monetary freedom is strong. 

Mozambique’s minimal wages list for different professions include the following:

• Extractive industry - large mining companies - MZN9,848.89
• Agriculture, livestock, and forestry - MZN4,829.00
• Extractive industry - quarries, micro, small and medium enterprises - MZN6,576.70
• Industrial fishing - MZN5,570.75
• Extractive industry - salt extraction industry - MZN5,559.21
• Kapenta fishing - MZN4,401.68
• Manufacturing - industrial sector - MZN7,450.00
• Electricity, gas, and water - small businesses - MZN7,246.72
• Manufacturing - bakery sector - MZN5,350.00
• Construction- MZN6,330.00
• Financial services - micro-finance, micro-insurance, and auxiliary activities - MZN11,914.43
• Electricity, gas, and water - big companies - MZN8,900.00
• Public administration, defense, and security - MZN4,467.75
• Nonfinancial services activities - MZN7,300.00
• Hotel industry - MZN6,578.00
• Financial services - banks and insurance companies - MZN13,410.18

Work agreements must be written per the Labour Law, companies should base payment rates on the real-time spent at work and reimburse workers regularly (weekly, monthly, and fortnightly).

‍

Statutory Deductions

According to the Labour Law, an employment contract can be terminated for the following reason: 

• Expiration of contract
• Valid reasons.
• Mutual agreement
• The employee can end the contract with or without valid reasons

In the case of a fixed-term employment agreement, the company must provide prior written notice to the employee before the contract ends, or the contract will be automatically renewed for an equal interval or changed into an indeterminate employment agreement. Early termination notice is also necessary in the case of firings for technological, institutional, or market-related grounds that are critical to competitiveness, economic transformation, or managerial or productive firm reform.

Notice Period

A 30-day notice should be given to all employees before that is fired. 

Severance

Employees are allowed severance pay after signing infinite agreements. The severance pay is dependent on employees' salaries:

• One to seven times the country’s minimum wage: obtain a 30-day pay/employment year 
• Eight-10 times the country’s minimum wage: obtain a 15-day pay/employment year
• 11-16 times the country’s minimum wage: obtain a 10-day pay/employment year
• More than 16 times the country’s minimum wage: obtain a three day pay/employment year

According to the Labour Law, an employment contract can be terminated for the following reason: 

• Expiration of contract
• Valid reasons.
• Mutual agreement
• The employee can end the contract with or without valid reasons

In the case of a fixed-term employment agreement, the company must provide prior written notice to the employee before the contract ends, or the contract will be automatically renewed for an equal interval or changed into an indeterminate employment agreement. Early termination notice is also necessary in the case of firings for technological, institutional, or market-related grounds that are critical to competitiveness, economic transformation, or managerial or productive firm reform.

Notice Period

A 30-day notice should be given to all employees before they are fired. 

Severance

Employees are allowed severance pay after signing infinite agreements. The severance pay is dependent on employees' salaries:

• One to seven times the country’s minimum wage: obtain a 30-day pay/employment year 
• Eight-10 times the country’s minimum wage: obtain a 15-day pay/employment year
• 11-16 times the country’s minimum wage: obtain a 10-day pay/employment year
• More than 16 times the country’s minimum wage: obtain a three day pay/employment year

Probationary Period

In Mozambique, the probation period is:

• Mid-level and senior technicians and workers involved in leadership and administrative jobs– 180 days.
• Workers – 90 days.