Mozambique Employer Payroll — IRPS Withholding, INSS & Modelo 19

Confirm the employer holds a valid NUIT (Número Único de Identificação Tributária) and is registered with INSS. Verify each new employee is registered with INSS within the required 30-day window and that the employer has filed Form 6 (declaration of commencement of activity) with the Autoridade Tributária de Moçambique (AT) if recently established.

Obtain the full payroll register for the pay period. Classify each pay element as INSS-pensionable or excluded (meal subsidies, one-off bonuses, expense reimbursements are excluded from the INSS base per PwC guidance). Validate every employee's basic wage against the applicable 2025 sector minimum wage (Decrees 87/2025–94/2025, effective 1 July 2025) before any computation proceeds.

Calculate monthly INSS contributions for every employee using the 3% employee / 4% employer split on the validated pensionable base. Produce the Lista Nominal (nominal payroll list) required by INSS for the period. Verify the total remittance amount and confirm the payment must reach INSS between the 20th of the current month and the 10th of the following month.

Apply the IRPS monthly withholding tables to each resident employee's taxable remuneration (gross pensionable pay less the employee's 3% INSS deduction, which is IRPS-deductible). Use the five-bracket progressive schedule (10%–32% with parcela a abater) for residents, and a flat 20% definitive withholding for non-residents. Note that from 1 January 2026, resident employees with only employment income must file an annual return (previously exempt if fully withheld).

Complete and submit Modelo 19 (Declaração de Retenção na Fonte — IRPS) via the AT eDeclaração portal (edeclaracao.at.gov.mz) by the 20th of the month following the pay period. The declaration reports total IRPS withheld and must reconcile exactly to the per-employee PAYE schedule produced in Phase 4. Remit the IRPS amount to the AT simultaneously.

At year-end (31 December), reconcile all 12 monthly Modelo 19 filings and INSS Lista Nominal submissions to the general ledger. Produce annual IRPS certificates for each employee. From 1 January 2026, resident employees with only employment income must file an annual IRPS return (January–April), so provide each employee with their annual income and withholding certificate. Final IRPS top-up payments are due end of May (employment income) or end of June (other income).