177 billion meticais to pay salaries and wages under the TSU this year – Deputy FinMin

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177 billion meticais to pay salaries and wages under the TSU this year – Deputy FinMin

9:28 CAT | 20 Jan 2023

File photo: Lusa

Mozambique’s Deputy Minister of Economy and Finance, Amílcar Tivane, reiterated the government’s commitment to ensuring that expenditure allocated to salaries does not exceed the respective amount.

According to Tivane, the Single Salary Table (TSU) in force in the Civil Service since July last year, can be applied within the budgetary limit established by law under the heading of salaries and wages.

Around 177 billion meticais, or about 13.5% of Mozambique’s Gross Domestic Product (GDP) are needed for the payment of salaries and wages under the TSU this year.

Deputy Minister Tivane explained that “the sustainability of the measures advanced within the TSU framework, namely the setting of the new minimum wage and the readjustment carried out, will not affect the State Budget in any way”.

“Throughout State Budget execution, adjustments will be made and meticulous monitoring will be carried out, on a monthly basis, of the management of expense on salaries and wages. When we prepared the reform, we prepared projections of the respective impacts on the State Budget,” he said.

Tivane said that, from January to September 2022, Mozambique paid an average wage and salary bill of 11.5 billion meticais, and, with the reform in force, it bridged the gap in monthly costs for the payment of salaries for the months of October, November and December by means of retroactive payments.

This jump, he added, meant that the costs nevertheless evolved within the State Budget provision.

Tivane also indicated that all the financial engineering was carried out to ensure that the maximum expenditure limits for salary and remuneration were not exceeded.

“Efforts were made in this direction and we managed to ensure that expenses in general did not exceed the approximately 3.6 percent of 2022 GDP. Naturally, there are small deviations due to the pressures arising from the TSU classification process, but not serious ones,” he said..

Tivane noted that the decision not to pay the ’13th Salary’, for example, stemmed from prudence in ensuring that expenses did not exert pressure on the Treasury and generate unprogrammed indebtedness.

He further guaranteed that the TSU policy would be adopted over time, with respect for budgetary limits, and that there would be no deep macroeconomic repercussions.

Source: O Económico