Meet Mozambique’s new minimum wages

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Meet Mozambique’s new minimum wages

12:43 CAT | 27 Apr 2016

In File Club of Mozambique

The Mozambican government yesterday approved a salary increase for all sectors, including the Civil Service.

The new pay scale was approved during the weekly meeting of the Council of Ministers, which took place on Tuesday in Maputo.

In the case of state officials, the adjustment varies from 4 to 9 percent, according to the Minister of State Administration and Civil Service, Carmelita Namashulua.

Speaking to reporters at the end of the session, Namashulua, stressed that the wage increase is a difficult exercise because of the economic situation currently experienced by the country.

Therefore, Namashulua stressed the need for the adoption of austerity measures by reducing spending on fuel, allowances and a greater control in the allocation of bonuses relating to overtime.”It is the conclusion that we would have different rates for the lower levels (primary school teachers, nurses and auxiliary health assistance technicians, technical health assistant, police officers and also civil service and service in the Defence and Security Forces) and also for the higher levels,” said the Minister, adding that in the first case the increase will be 9 percent and in the second,4 percent.

“This exercise was not easy because we are in a situation not very good in relation to our economy. There are still many weaknesses. We have limited funds and they must be shared so that, indeed, our civil service and other sectors can work,” she reiterated.

In Mozambique, the salary adjustment is made by business sectors. The announcement of the news minimum wages was made by minister of Labour, Employment and Social Security, Vitória Dias Diogo.

For Sector One, which includes the Agriculture, Livestock, Hunting and Forestry, according to minister Vitória Diogo, the increase was 3.61 percent, going from 3,183 meticais to 3,298 meticais (one dollar equivalent to about 50 meticais at current exchange rates).

In Sector Two, which includes Industrial and Semi-Industrial Fishing, the readjustment was 9 percent, rising from 3,500 meticais to 3,815 meticais. Within this sector is included the Kapenta subsector which experienced an increase of 12.5 percent, going from 3,000 meticais to 3,350 meticais.

In Sector Three which covers the Mining Industry, the increase was 10 percent for large companies,from 5,643 meticais to 6,314 meticais, and for small companies the adjustment was 8.11 per percent, rising from 4,539 to 4,907.17 meticais. The sub-sector of Salt Extraction increased by 7 percent, from 4,176 to 4,476.00 meticais.

In Sector Four ( Manufacturing Industry ), the salary raise was 8 percent, rising from 4,815 meticais to 5,200 meticais, while in the baking subsector, the adjustment was 5.15 percent, the minimum salary rising from of 3,790 meticais to 3,985 meticais.

Sector Five (Electricity, Gas and Water) is subdivided into two subsectors, one for the big companies, which had an increase of 11.75 percent, going from 5,402 to 6,037 meticais and another for small companies, which had an increase of 11.75 percent, rising from 4,851, to 5,421 meticais.

Sector Six (Construction) had a 9 percent increase, from the current 4,483 meticais to 4,887 meticais.

Sector Seven (Nonfinancial Services) had an increase of 8 percent, going from 4,676 meticais to 5,050 meticais.

Sector Eight (Financial Services, Banking and Insurance) had an increase of 8.70 percent, rising from 8,050 meticais to 8,750 meticais. The Microfinance sub-sector, that also includes Micro-Insurance, had a 2.59 percent increase, from 7,800.00 to 8,400 meticais.

Sector Nine is the Civil Service.

In the same session, the government ruled on the issue of debt that the country contracted but had not revealed, namely to the International Monetary Fund, according to the rules for this purpose.

Source: AIM