Mozambique: Internal public debt spiral slows down for the first time since 2016
Saint Louis Studio / Steven Le Vourc'h (File photo) / Finance Minister of Mozambique, Adriano Maleiane
The Mozambican government has cut this year’s New Year bonus for state employees by 50 per cent, the Minister of Economy and Finance, Adriano Maleiane, announced on Tuesday night.
The bonus is known as “the 13th month”, because it is equivalent to an extra month’s wages. It has become a tradition, but the government has no legal obligation to pay it.
Speaking at a Maputo press conference, Maleiane said it had always been understood that the government would pay the 13th month, if it had enough money to do so. Throughout 2016, the government had ensured that all workers in the public administration were paid every month – but now, at the end of the year, there was only enough money available to pay 50 per cent of the 13th month.
Furthermore, anybody holding a government position – from the President of the Republic down to the heads of administrative posts (the administrative rung beneath districts) – will not receive any bonus at all.
Also excluded from the bonus are people holding senior positions in the state apparatus, and office holders in state-run institutes, funds and other such bodies. Managers of any public company which is subsidized by the state budget will also not receive any 13th month.
“Anyone in a leadership position will not receive the 13th month”, said Maleiane. Thus only the lower paid state employees will receive the bonus. He regarded this as a measure of social justice.
“At a time when there are limited resources, it makes sense for us to take this step”, the Minister added.
The 2016 target of collecting revenue of 165 billion meticais (2.33 billion US dollars at current exchange rates) would be met, Maleiane said, “and this gives us the room to make the payment in this form”.
Maleiane said that, under normal circumstances, paying a full 13th month would cost the state about five billion meticais (about 70.4 million US dollars). The 50 per cent of the 13th month, with all the exclusions, will cost 2.4 billion meticais.
Maleiane said the bonus will be paid to those eligible by 15 January. He said it would have no impact on the January wages which will be paid in the second half of the month.
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.