The Government plans to restrict hiring in the Public Administration until 2028, allowing only occasional recruitments and implementing measures to curb the growth of wage expenditure. This directive is part of the Medium-Term Fiscal Scenario (MTFS) for the 2026–2028 period, recently approved by the Council of Ministers on June 24, and aims at the gradual reduction of the State’s wage bill.
Among the priority measures outlined for this period are enhanced audits, verification of civil servants’ active status (known as “proof of life”), and acceleration of the retirement process. The Executive also intends to revise the criteria for the location allowance and cut by half the percentage related to civil and special seniority pay (diuturnity).
According to the MTFS, these actions aim to reduce the weight of the wage bill in the Gross Domestic Product (GDP), from 11.9% in 2026 to 10.5% in 2028. The rationalization of generalized subsidies, progressively replacing them with more targeted and efficient transfers, is considered a structural measure. Other planned reforms include the consolidation of the State Financial Administration System (SISTAFE), with full integration of its subsystems and improved information flows to support decision-making. Changes are also expected in human resources management and the public sector incentive system.
Although overall State spending is projected to continue growing in nominal terms — from 530.2 billion meticais (USD 8.3 billion) in 2026 to 606.1 billion meticais (USD 9.5 billion) in 2028 — its proportion relative to GDP is expected to remain stable at around 32%, below the 35% recorded in 2024. For 2025, the Government forecasts 205.6 billion meticais (USD 3.2 billion) in salary and remuneration expenses, representing a 1.3% increase compared to the previous year. However, each new hire will be subject to the departure of three employees, as stipulated in the 2025 Economic and Social Plan and State Budget (PESOE 2025), approved in May by the National Assembly.
According to official data, State salary and remuneration costs rose by around 40% in 2024 compared to the previous year, covering an estimated 370,000 public servants and state agents.
Source: Lusa
