Mozambique: Enforcement of new civil service salary table TSU to resume in October

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Mozambique: Enforcement of new civil service salary table TSU to resume in October

10:57 CAT | 24 Aug 2022

Image: TVM

Mozambique’s government aims to resume the enforcement of the new Single Salaries Table (TSU) in October, after interrupting the process due to inconsistencies detected in the first month of implementation, according to the minister of economy and finance, Max Tonela.

“Our expectation is that in October the State will be able to pay all employees in accordance with the Single Wage Table and with the retroactive payments due from July,” said Tonela, quoted in Mozambican media on Tuesday.

The government hopes this week to conclude the discussion about the TSU with the various existing professional groups, including doctors and teachers, the minister explained, adding that “very soon” a proposal for a specific revision of the law was expected to be submitted for consideration in cabinet.

“Our perspective is that this revision can be appreciated by Parliament as soon as possible. The expectation is that this can occur during the month of September,” he said.

In July, the government acknowledged that there were “inconsistencies” in the application of the new TSU for civil servants – flaws that led the government to put a brake on the full implementation of the new payment procedure.

According to the Ministry of Economy and Finance, the implementation of the TSU will have a budget impact of 9.2 billion meticais (€142 million) in the first six months. The new TSU for civil servants has 21 levels, ranging from 8,756 meticais to 165,758 meticais per month, instead of 103 levels, as was the case previously.

According to figures from the ministry’s public accounts department, published at the beginning of the month, around 306,000 civil servants, or 80% of a total of 382,728 active employees, were already covered and in a position to receive salaries according to the criteria set out in the new TSU.

The annual impact of applying the new instrument is estimated at 19.6 billion meticais, according to ministry figures.

The document establishes that the president of Mozambique has a monthly salary corresponding to the top of the 21 pay brackets, plus a representation subsidy equivalent to 40% of salary.

The government believes that the new “salary pyramid” will reduce the weight of civil service salaries from around 13% of gross domestic product to 8% over the next four years.

The aim is also to harmonise criteria for defining public sector salaries, placing four criteria at the centre of the formula: academic qualifications, seniority, career and age.

Source: Lusa