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Mozambique: New minimum wages increase between 190 and 931.67 meticais – Carta
1:40 CAT | 27 Apr 2022
The new national minimum wages have already been decided, the Council of Ministers on Tuesday (26-04) approving the readjustments to be applied retroactively from April 1st.
The proposal was submitted by the Consultative Labour Commission on the same day, after consensus between the government, employers and workers was reached on Monday.
Adjustments in the chart published by the Ministry of Labour and Social Security vary between 190.00 and 931.67 meticais, with the lowest rise that in the kapenta fishing subsector (maritime , industrial and semi-industrial fishing sector) and the highest in the banking and insurance subsector (financial services activities sector).
In fact, the new minimum wage structure continues to reveal large inequalities between the financial and non-financial sectors, with financial services the only sector where the prescribed minimum wage is above 10,000.00 meticais.
The new minimum wages
These are the new minimum wages.
The agriculture, livestock and forestry sector minimum wage increased by 371.00 meticais, from 4,829.00 meticais to 5,200.00 meticais.
The maritime, industrial and semi-industrial fishing sector minimum rose from the current 5,570.75 meticais to 5,820.75 meticais, corresponding to an increase of 250.00 meticais, while the kapenta fishing sub sector recorded an increase of 190.00 meticais, from the current 4,401.68 meticais to 4,591.68 meticais.
In the mineral extraction industry, the large companies subsector saw a readjustment of 506.69 meticais, from 9,846.89 meticais to 10,353.58 meticais. The quarry and sandpits subsector minimum increased by 250.00 meticais, from 5,580.00 meticais to 5,830.00 meticais, while salt pans saw an increase of 200 meticais, from 5,759.00 to 5,559.00 meticais.
The manufacturing sector gained a 495.00 meticais rise, so the minimum wage is now 7,945.00 meticais, against the current 7,450 meticais. However, the bakery sub sector had an increase of 360.00 meticais and the cashew subsector had an increase of 300.00 meticais. In bakery, the minimum wage is set at 5,710.00 meticais, against 5,350.00 meticais today and, in cashew, the minimum wage will be 5,310.00 meticais, against the current 5,010.00 meticais.
In turn, in the electricity, gas and water production and distribution sector, the salary is now 9,325.00 meticais in Large Companies and 7,566.72 meticais in Medium and Small Companies – increases of 425.00 meticais and 320.00 meticais respectively.
The construction sector, on the other hand, had an increase of 368.60 meticais, with wages now at 6,700.00 meticais, against the 6,331.40 meticais that were paid until March 2022.
The non-financial services sector gained another 474.50 meticais, from 7,300.00 meticais to 7,774.50 meticais. However, the hotel industry and the private security sub sectors had an increase of 372.00 meticais and 225.00 meticais, respectively. Thus, the new minimum wages are, respectively, 6,950.00 meticais (hotel industry) and 7,525.00 meticais (private security).
The financial services activities sector saw the largest increases. Banking and insurance rose by 931.67 meticais to a minimum of 14,340.85 meticais against the previous 13,409.18 meticais. The micro-finance, micro-insurance and other activity entities subsector increased by 827.36 meticais, from the current 11,913.93 meticais to 12,741.29 meticais from 1st of April 2022.
The reasoning
In the document sent to our editorial office, the Ministry of Labour and Social Security explains that the new minimum wages reflect the consensus reached at the negotiating table, and express an economic and social moment, “characterised by a low level of production and productivity, due to the negative impact of the Covid-19 pandemic, the actions of terrorists in Cabo Delgado province and natural disasters”.
However, at the end of the Labour Consultative Council meeting, the Mozambican Workers’ Organisation – Trade Union Central, said it was not satisfied with the course of the negotiations. “Workers’ expectations were not met. Although we are not satisfied, we are encouraged to continue with the negotiation of social packages at the level of sectors of activity, to reinforce the recovery of purchasing power,” said André Mandlate, quoted by STV.
The new minimum wages are announced at a time when the cost of living is increasing, with emphasis on the prices of fuel and bread, as a result of the war between Russia and Ukraine.
Source: Carta de Moçambique
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