Mozambican workers in SA to be paid in rands

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Mozambican workers in SA to be paid in rands

4:35 CAT | 05 Jul 2016

AP (File photo)

The new deferred payment model for Mozambican workers in South Africa went into force on Friday, July 1, when the Mozambican government decided to end a more than 50-year long TEBA tradition of deferred payment to miners.

At least 40 million rand, or about US$2.7 million, is transferred per month to Mozambique under the deferred payment system, under which 60 percent of miners’ monthly salary is withheld from the seventh month of their 12-month contract on and sent home on their behalf.

The scheme has for years been considered a way of helping workers save. Now the payment will be deposited monthly in a bank account belonging to the worker and can be withdrawn anywhere in Mozambique either in rand or in the local currency.

Source: Voa Portugues