Work permissions – Government fees increased due to link to Minimum wages

As per the Decrees that regulate the procedures for contracting foreign employees, Short term and Long term Work Permits are subject to the payment of a Government fee, which is linked to the Minimum wage per sector.

New Minimum wages Mozambique – as per 1 August 2021

Mozambique does not have one national statutory minimum wage, minimum wages are instead defined per industrial sector.

The minimum wages are normally discussed in the first quarter of every year in the Labour Consultative Commission (CCT), the tripartite negotiating forum between the Mozambican government, the trade unions, and the employers’ associations. The new minimum wages normally take effect as from the month of April. However, due to the impact of COVID on the businesses, there were no increases of the minimum wages in 2020.

The CCT only discusses the minimum wage. Anything above the minimum is to be defined by the employer and for those companies who have a collective union agreement in place it is a matter for collective bargaining between the union and the employer in each company. It is to be noted that quite some employers pay their workers more than the statutory minimum.

The minister mentioned the negative impacts of the covid-19 pandemic, armed attacks in central and northern Mozambique and the natural calamities that affected the country as factors reflected in the percentage values ​​approved. See in the table below the new minimum wages, which enter into force as per 1 August 2021 (not retroactive to April!).

 Sector Sub-sector New min wage (Meticais)

(as per 1 August 2021)[1]

Agriculture, Live stock and hunting N/A  4,829.00 (10%)
Fishery Semi-industrial 5,570.75 (3.7%)
‘Kapenta’ 4,401.68 (3.1%)
Minerals Extracting Industry Large companies 9,848.89 (6.4%)
Quarry (Stones and Sand) 6,576.7 (3.14%)
Salt 5,559.21 (4.54%)
Transforming Industry Industry in general 7,450.00 (6.43%)
Bread 5,350.00 (7%)
Caju 5,010.00 (8.6%)
Production and Distribution of Electricity, Gas and Water Small companies 8,900.00 (7.2%)
Big companies 7,246.72 (7.2%)
Construction N/A 6,330.00 (3.16%)
Services – Not financial activities General 7,300.00 (6.16%)
Hotels and Tourism 6,578.00 (1.1%)
Financial services Banking and Insurance 13,410.18 (5.09%)
Micro-finance, Micro insurance and other entities providing intermediating support 11,914.4  (5.09%)

[1] ACIS – Association for Commerce and Industry and Services in Mozambique

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by Karin Burgman