The Mozambican Council of Ministers today approved a reduction in the salaries and allowances of ministers, deputy ministers, secretaries of state and deputies, among other holders and members of public bodies.
The proposal also reviews the salaries of members of provincial assemblies, which are “much higher than those of executive bodies at provincial and national level, as well as professional specialists from various sectors of the State,” going against the principle of fair salaries, the statement said.
The amounts of the reduction were not disclosed.
“This revision will improve the sustainability of the State’s wage bill and is in perfect alignment with the structural reforms that the Government has been implementing,” justifies the executive, guaranteeing that the Single Wage Table (TSU) applicable to the rest of public servants will remain unchanged.
The proposal approved by the Council of Ministers will be submitted to the Parliament in the next few days.
One of the entities paying attention to Mozambican public spending is the International Monetary Fund (IMF), via the financial support programme for the country worth US$450 million (415 million euros) until 2025, approved a year ago.
The IMF has already warned about the imbalances that could lead to a higher than expected wage bill, which should lead to a review of some points of the programme in order to keep it sustainable.
The revision is expected to lead to the IMF’s third disbursement under the programme, worth about $70 million (€65 million).
The TSU was approved in 2022 in order to eliminate asymmetries and keep the state wage bill under control in the medium term, but the start-up caused wages to soar by about 36%, from 11.6 billion meticais/month (169 million euros/month) to 15.8 billion meticais/month (231 million euros/month).
In January, the Government announced corrective measures, complemented by today’s announcement, and a complementary audit is still underway.