Mozambique: Trade Union expects minimum-wage raise but is “aware” of difficulties – Watch

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Mozambique: Trade Union expects minimum-wage raise but is “aware” of difficulties – Watch

1:51 CAT | 05 Aug 2025

Screen grab: Miramar

The Mozambican Workers’ Organization (OTM) expects wages to increase this year, although it admits it is aware of the business difficulties resulting from post-election protests, indicating that this will be evaluated “case by case” in the negotiations.

“What would please any of us is having a better salary to support our families. We are certainly aware that there are difficulties in all sectors; the difficulties are not limited to the private sector, where we operate; they affect all spheres. But we will do everything we can to minimize these difficulties for workers,” said Damião Simango, of the Mozambican Workers’ Organization – Trade Union Central (OTM-CS).

Damião Simango was speaking yesterday at the start of the 2nd plenary session of the Labour Consultative Commission (CCT) in Maputo, which includes advancing the debate on wage adjustments in Mozambique, postponed in May by the government due to the country’s economic instability and setting August as the start date for talks.

“Companies are certainly also in a state of reconstruction and recovery, but at the negotiating table, and on a case-by-case basis, we will discuss and see what possibilities exist,” Simango said in reference to the sectors requiring wage adjustments.

42,000 meticais

“In our annual study of the basic food basket, the minimum wage is set at around 42,000 meticais, which represents an increase of about 6% inflation compared to our study of last year, when the basic food basket was estimated at around 40,000 meticais (€541),” Simango said.

Confederation of Economic Associations of Mozambique (CTA), which represents the private sector, also made it known in statements to the press that it does not currently have estimates for the amounts that could be set for the new minimum wages in the country, adding that the business sector is still feeling the impact of the protests that “slowed down” the economy.

“We are committed to holding discussions regardless of the conditions the country is experiencing, which are indeed difficult. However, within the framework of tripartite social dialogue, it is essential that we reaffirm this commitment to going to the negotiating table, and we intend to conclude this discussion in a way that satisfies all parties,” said Faruk Osman, president of the CTA’s Labour Department.

READ: Mozambique: New minimum wages will be set this month

In Mozambique, salary adjustment negotiations, especially in the public sector, typically take place at the beginning of each year, between January and April.

The last minimum wage increases in Mozambique, which ranged from 3% to 10.53%, came into effect on April 1, 2024.

According to the legislation regarding the salary updates, these adjustments affected eight different sectors of the Mozambican economy.

The 2024 adjustment resulted from a proposal by the Labour Advisory Committee, following a meeting of the Council of Ministers in Maputo.

Among the sectors that saw minimum wage increases last year, the fishing sector stood out as presenting the lowest values. After a 3.3% increase, it rose to 4,941 meticais (€72).

Also noteworthy is the sector that includes agriculture, livestock, hunting, and forestry, where the wage was raised by 9.27%, to 6,338 meticais (€93).

In the industrial and semi-industrial segment, the adjustment is 5%, rising to 6,531 meticais (€95).

In the mining industry, large companies, and microfinance, among those with the highest minimum wages, the raise in 2024 was 8%, to 14,183 meticais (€208), and 10.53%, rising to 15,741 meticais (€231), respectively.

Nearly a thousand Mozambican companies were affected by the post-election protests, with an impact on the economy exceeding €480 million and causing 17,000 job losses, according to CTA estimates.

Source: Lusa