Mozambican government increases state minimum wage 6.5%

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Mozambican government increases state minimum wage 6.5%

1:40 CAT | 25 Apr 2018

It is an increase of 260 meticais (EUR 3,57 at current exchange rates). Photo: O País

The Mozambican Council of Ministers yesterday increased the minimum wage for state employees and agents 6.5 percent to 4,255 meticais (58.3 Euros) against the current 3,999 meticais (54.8 Euros), with effect from 1 April.

At a press conference at the end of the session of the Council of Ministers, Minister for State Administration Carmelita Namashulua said that the remaining state wage categories would increase by 5 percent.

She also said that the government had decided to allocate 1.8 billion meticais (24.5 million Euros) for expenses related to promotions, progressions and career changes.

“The Mozambican government will continue to reflect, alongside the trade unions, on how to improve the living conditions of state officials and agents, despite the economic situation in which the country finds itself,” she added.

Due to the financial difficulties the country faces, the executive has determined that new employees will only be hired for the health, education and defence and security sectors, she stressed.

“In other sectors, we will prioritise mobility,” she said.

Also in yesterday’s session, the cabinet decreed new minimum wages for eight areas of activity in the private sector.

According to the chart presented by the Minister of Labor, Employment and Social Security, Vitória Diogo, the minimum wage in the private sector will increase between 6 and 18.7 percent, with effect from April 1.

Labour Consultative Commission proposes new minimum wages – Mozambique

The figures will recover lost purchasing power, and are above the 2017annual inflation rate with a year-on-year change of 5.65 percent, according to data published by the National Statistics Institute (INE).

The lowest increase in the minimum wage is in the salt sector, with a 6 percent increase to 5,018 meticais (66.87 Euros), and the highest increase in the big mining companies, with 18.68 percent to 8,263 meticais (110 Euros).

The country’s lowest minimum wage will be that of the inland kapenta fishermen, which rises 7.5 percent and will be set at 4,063 meticais (54 Euros).

The agriculture, livestock, hunting and forestry sector was the lowest paid in 2017, and climbs a position this year with a figure of 4,150 meticais (55.3 Euros), thanks to the agreed rise of 13.93 percent.

The financial services, banks and insurance sector still enjoys Mozambique’s highest minimum wage, up 14.4 percent to 11,987 meticais (159 Euros).

Source: Lusa