Payroll in Mozambique: IRPS, INSS, minimum wages and the 2026 residence rules for expatriates
Payroll is where the labour and immigration steps turn into monthly obligations. Two rules changed the picture for expatriates in 2026: tax residence no longer depends on a day count, and the tax authority has a new set of withholding and reporting procedures. This page sets out what an employer in Mozambique withholds and pays each month, what is different for a foreign worker, and the figures that drive the cost of an expatriate.
Resident or non-resident: the 2026 test
Since 1 January 2026, article 21 of the IRPS Code, as amended by Law 11/2025, treats as tax resident, regardless of nationality and of the number of days spent in the country, anyone whose main residence is in Mozambique, anyone who carries on a professional activity in Mozambique unless they can show it is secondary, anyone whose centre of economic interests is in Mozambique, and crew of ships or aircraft operated by Mozambican-resident entities. Members of a household are resident when the person who heads it is resident. The former day-count test is gone.
| Status | What is taxed | Rates | Reference |
|---|---|---|---|
| Resident | Worldwide income, including income earned outside Mozambique | Progressive: 10% up to MZN 42,000; 15% to 168,000; 20% to 504,000; 25% to 1,512,000; 32% above (annual taxable income) | IRPS Code, arts. 20 and 54 |
| Non-resident | Only income earned in Mozambique | 20% final withholding on employment income | IRPS Code, arts. 20 and 57 no. 2 b) |
IRPS on salaries: what the employer does
- The employer withholds IRPS monthly on employment income under the table of article 65-A and pays it to the tax authority; the employee needs an individual tax number (NUIT) before the first payroll.
- Employment income includes salary, bonuses, allowances and benefits in kind under the rules of the Code; the remuneration paid abroad for work performed in Mozambique forms part of the tax analysis, whether the person is resident (worldwide income) or non-resident (Mozambican-source income).
- Annual income paid to non-residents is reported on the M/20-I return by the end of June of the following year (Ministerial Diploma 113/2006, art. 1).
- No transfer abroad of IRPS income earned in Mozambique by a non-resident may be made unless the tax due is shown to be paid or secured (IRPS Code, art. 71); banks apply this at the time of the transfer.
Worked example: monthly withholding (resident, no dependants, 2026 table)
| Item | Monthly | Twelve identical months |
|---|---|---|
| Gross salary | MZN 300,000 | MZN 3,600,000 |
| IRPS withholding, art. 65-A table (MZN 28,375 plus 32% of the amount above MZN 144,750) | MZN 78,055 | MZN 936,660 |
| INSS employee (3%) | MZN 9,000 | MZN 108,000 |
| Net after these two deductions | MZN 212,945 | MZN 2,555,340 |
| INSS employer (4%) | MZN 12,000 | MZN 144,000 |
| Employer cost before other benefits and charges | MZN 312,000 | MZN 3,744,000 |
The example applies the monthly withholding table of article 65-A of the IRPS Code, as amended by Law 11/2025, to a gross monthly salary of MZN 300,000 paid to a resident with no dependants. It assumes twelve identical months, liability to INSS and no other remuneration, benefits in kind or special regime. The annual column adds the monthly amounts; it does not replace the analysis of the filing obligations or of the individual’s final tax position. The annual rates of article 54 and the monthly table of article 65-A coexist and are not interchangeable.
INSS: rates, base, deadlines
| Rule | Decree 51/2017 |
|---|---|
| Contribution rates | 4% employer and 3% employee |
| Base of contributions | Salary, seniority bonus, management gratification, regular productivity and attendance bonuses, substitution pay, night-work pay and other regular bonuses, allowances and commissions (art. 11) |
| Employer registration | Within 15 days of starting activity or acquiring the company (art. 7) |
| Worker registration | By the employer, on the electronic form, with documents sent within 30 days of the start of the contract (art. 9) |
| Monthly declaration and payment | From the 20th of the reference month to the 10th of the following month, on the INSS platform (art. 12) |
| Changes and terminations | Notified within 30 days of the event (art. 10) |
Foreign workers: exemption and refund
Foreign workers covered by another country’s social security system are not required to register, but the exemption requires proof of that coverage to be provided to INSS: a certificate authenticated by the Mozambican consulate in the country of origin, or whose conformity with the issuing country’s formalities is declared by the competent authority (art. 4). A foreign beneficiary who permanently leaves Mozambique before becoming entitled to a pension may request a refund of the contributions paid in their name to the pension branch, provided INSS has not concluded a bilateral social security agreement with their country of origin; the request must be made within one year of the payment date of the last contribution (art. 123 nos. 3 and 4).
Minimum wages 2026: why payroll needs the table
Mozambique sets minimum wages by sector. The 2026 table, with effect from 1 April 2026, ranges from MZN 4,991.09 in kapenta fishing to MZN 20,361.43 in banks and insurers; non-financial services are at MZN 10,845 and manufacturing at MZN 10,622.50. The sector minimum wage is not only a floor: it is the unit for the labour fees of Decree 88/2024 (one, five or ten minimum wages per file), the measure of the severance brackets of the Labour Law (art. 141) and the reference for several fines. The full table is in Minimum wages 2026 by sector.
Split payrolls and salaries paid abroad
Paying part of an expatriate’s salary from the parent company does not take it out of the Mozambican analysis. For a resident, worldwide income is taxable in Mozambique; for a non-resident, the part that remunerates work performed in Mozambique is Mozambican-source income. The contractual framework of the project, any treaty and any specific exemption have to be checked case by case; the Area 1 and Area 4 concession contracts, for example, provide an exemption for certain non-resident expatriate personnel of the concessionaire and its subcontractors, with its own conditions. Document the allocation between countries, keep the local payroll consistent with the labour contract filed with the authorities, and declare what is taxable here.
The monthly payroll calendar
| Obligation | When | To whom |
|---|---|---|
| IRPS withholding on salaries | Monthly, by the deadline set in the Code for the month following payment | Tax Authority |
| INSS declaration and payment | From the 20th of the month to the 10th of the following month | INSS |
| Worker registration with INSS | Within 30 days of the start of the contract | INSS |
| Labour notifications on changes and terminations | Addendum on changes; five days on termination (Decree 88/2024, arts. 20 and 23) | Provincial labour authority and migration service |
| Annual return of income paid to non-residents (M/20-I) | By the end of June of the following year | Tax Authority |
Frequently asked questions
When does an expatriate become tax resident in Mozambique?
Since 2026, when their main residence is in Mozambique, when they carry on a professional activity in Mozambique that is not shown to be secondary, or when their centre of economic interests is in Mozambique, regardless of nationality and days present (IRPS Code, art. 21, as amended by Law 11/2025). Household members follow the head of household.
What are the income tax rates in Mozambique in 2026?
Monthly salaries of residents are withheld under the table of article 65-A of the IRPS Code, as amended by Law 11/2025, which rises to MZN 28,375 plus 32% of the amount above MZN 144,750 a month, with lower amounts for taxpayers with dependants. The annual rates of article 54 are 10% up to MZN 42,000 of taxable income, 15% to 168,000, 20% to 504,000, 25% to 1,512,000 and 32% above. Non-residents pay a 20% final withholding on employment income earned in Mozambique (art. 57).
What are the INSS contributions in Mozambique?
Four percent from the employer and three percent from the employee on salary and regular allowances, declared and paid between the 20th of the month and the 10th of the following month (Decree 51/2017, arts. 11 and 12). Foreign workers who prove coverage abroad are exempt from registration (art. 4).
Can an expatriate recover INSS contributions when leaving Mozambique?
A foreign beneficiary who permanently leaves before becoming entitled to a pension may request a refund of the pension-branch contributions paid in their name, where INSS has no bilateral agreement with their country of origin, within one year of the last contribution (Decree 51/2017, art. 123).
Sources
- Leis n.º 11/2025 e 12/2025, de 29 de Dezembro (alterações ao IRPS e IRPC), Boletim da República I Série n.º 248
- Código do IRPS (Lei n.º 33/2007, de 31 de Dezembro, republicado pela Lei n.º 19/2017 e alterado pela Lei n.º 11/2025), artigos 20, 21, 54, 57, 65-A e 71
- Regulamento da Segurança Social Obrigatória (Decreto n.º 51/2017, republicado pelo Decreto n.º 56/2024), via INSS
- Salários mínimos em vigor desde 1 de Abril de 2026, tabela oficial do INSS
- Diploma Ministerial n.º 113/2006, de 31 de Maio (comunicação de rendimentos pagos a não residentes e aplicação das convenções), Boletim da República I Série n.º 22, suplemento
- Decreto n.º 88/2024, de 17 de Dezembro (contratação de cidadãos estrangeiros), via Ministério do Trabalho
- Autoridade Tributária de Moçambique
General information prepared by dBA from legislation and public sources available at the date shown. It is not tax or legal advice. Confirm how it applies to your case with our team before acting.
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