Minimum wages in Mozambique rise by between 5 pct and 20 pct in 2014

29 April 2014

The Mozambican government has agreed with its social partners to increase minimum wages by between 5 percent and 20 percent in nine business sectors, which will be put in place in May, the two sides said recently.

The salary update was defined by the Labour Consultation Commission, which brings together the biggest employers’ association and workers’ union in the country, the Confederation of Economic Associations of Mozambique and the Organisation of Mozambican Workers (OTM-CS).

Although a variation of between 5 and 20 percent has already been agreed, the details of the size of the increase for each sector will only be announced after they are approved by the Council of Ministers, which is due to happen at the beginning of next week.

In the previous review, approved in April 2013, rises ranged from 6 percent to 32 percent. The lowest rise was for Manufacturing Industry, the Bakery sub-sector and the highest rate was for the Extractive Industry, in terms of minimum wages set for large companies.

The Financial Services sector is currently the highest paid sector in the country in terms of minimum wage, with 6,817 meticals (around US$220), and the Agricultural, Livestock, Hunting and Silvicultural sectors have the lowest minimum wages, with 2,500 meticals (US$80.6).

Minimum wages for the Fishing, Water and Electricity Production and Distribution sectors, construction, non-financial Services and Public Worker are also regulated.

The salary increases that the government has agreed take into account macro-economic indicators such as gross domestic product (GDP), which posted growth of 7.1 percent in the last year, and average annual inflation, estimated at 4.2 percent. (macauhub/MZ)