Just in: Mozambique approves pay cut for ministers, deputies, other public office holders

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Just in: Mozambique approves pay cut for ministers, deputies, other public office holders

7:22 CAT | 25 May 2023

FILE - For illustration purposes only.[File photo: RM]

The Mozambican Council of Ministers approved today a reduction in the remuneration and the representation allowances of ministers, deputy ministers, state secretaries and deputies, among other office holders and members of public bodies.

The proposal also revises the remuneration of members of provincial parliaments, the provincial assemblies, which is “quite [a lot] higher than those of executive bodies at provincial and national level, as well as specialist professionals from various sectors of the State”, contrary to the principle of wage justice, a statement explains.

The amount of the reductions was not disclosed.

“This revision will improve the sustainability of the State wage bill and is in perfect alignment with the structural reforms that the Government has been implementing,” the executive argues, while guaranteeing to maintain Single Salary Table (TSU) remuneration levels for all remaining public workers.

The proposal approved by the Council of Ministers will be submitted to parliament in the coming days.

One of the entities concerned about Mozambican public spending is the International Monetary Fund (IMF), whose US$450 million (€415 million) financial programme supporting the country through to 2025 was approved a year ago.

The IMF has already warned of the imbalances that a higher-than-expected wage bill could cause, potentially leading to a review of parts of the programme in order to maintain its sustainability.

The review is expected to lead to the third IMF disbursement under the programme, amounting to around US$70 million (€65 million).

The TSU was approved in 2022 in order to eliminate discrepancies and keep the state wage bill under control in the medium term, but its initial implementation caused the wage bill to skyrocket by around 36% from 11.6 billion meticais a month (€169 million) to 15.8 billion meticais (€231 million).

In January, the government announced corrective measures, complemented by today’s announcement, and a complementary audit is still underway.

Source: Lusa