30 April 2014

Mozambique: Government Announces New Minimum Wages

Maputo — The Mozambican government on Tuesday approved the new statutory minimum wages, with increases ranging between three per cent and over 20 per cent, as proposed by the Consultative Labour Commission (CCT), the tripartite negotiating forum between the government, the trade unions, and the employers' associations.

At a press conference following a meeting of the Council of Ministers (Cabinet), Labour Minister Helena Taipo said that the largest percentage increase, of 20.4 percent, was granted to agricultural, livestock and forestry workers. In this sector, the minimum monthly wage rises from 2,500 meticais (82 US dollars) to 3,010 meticais.

Fishery workers are to receive an 11.1 per cent in their minimum wage, which rises from 2,850 to 3,167 meticais. One fishery, however, is allowed to pay lower wages. This is the kapenta (Lake Tanganyika sardine) fishery on the Cahora Bassa reservoir in Tete province. Workers in this fishery will only receive an eight per cent rise, so that their minimum wage increases from 2,645 to 2,857 meticais.

The extractive industry has now been divided into three sectors for wage purposes. Large mining companies will have to pay an increase of 15 per cent in the minimum wage, which rises from 4,651 to 5,350 meticais.

Workers in quarries are paid considerably less. Their minimum wage rises by only 11 per cent, from 3,888 to 4,316 meticais. Workers in the salt extraction industry do even worse. Their wages will rise by 3.15 per cent to 4,010 meticais.

The minimum wage in manufacturing industry rises by 11.57 per cent, from 3,943 to 4,400 meticais. The bakery subsector, however, receives a rise of only 9.38 per cent, bringing the minimum wage for bakery workers from 3,195 to 3,485 meticais.

The electricity, gas and water sector has been divided into two. Large companies will have to pay their workers an increase of 16.1 per cent, increasing their wages from 4,107 to 4,768 meticais. Workers employed by small companies in this sector will only receive a 9.1 per cent rise, bringing their minimum wage to 4,480 meticais.

The minimum wage in the building industry rises by 13.13 per cent, from 3,495 to 3,953 meticais.

For non-financial services, the minimum wage rises by 10.5 per cent, from 3,826 to 4,228 meticais.

Workers in financial services continue to enjoy by far the largest minimum wage. Here too negotiations in the CCT led to splitting the sector in two.

Banks and insurance companies will pay an increase of 9.5 per cent, raising their minimum wage from 6,817 to 7,465 meticais.

For those working in micro-finance, micro-insurance and auxiliary activities, the rise is only 6.2 per cent, bringing their minimum wage to 7,421 meticais.

Finally, the minimum wage in the public administration, including the defence and security forces, rises by eight percent. This pushes the minimum wage of public sector workers up to 3,002 meticais

For the private sector, the government only fixes the minimum wage, and no employer is allowed to pay less than that. Wages above the minimum are negotiated through collective bargaining in each company.

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