Africa-Press – Mozambique. The International Monetary Fund has urged Mozambique to contain public expenditure primarily through the wage bill, recommending the elimination of the 13th-month salary in 2026, with partial reinstatement in 2027 and 2028, freezing base salaries and career progressions, among other measures aimed at reducing the public wage bill from 14.4 to 11 percent of GDP by 2028.
The recommendation appears among dozens of other issues and proposals in the IMF report following its regular consultations with Mozambique.
“Expenditure savings should primarily come from wage bill containment (reduction by 3 percentage points of GDP), as Mozambique’s wage bill—among the highest in the region at 14.4 percent of GDP in 2024—accounts for roughly half of government spending. ,” the IMF notes in the report approved on 13 February.
The report adds that “by reducing the public wage bill to 11 percent of GDP by 2028, this would create space to increase domestically financed capital and social spending, which recover under the reform scenario.”
The measures recommended by the IMF include “eliminating the 13th-month salary in 2026, then partially reinstating it (25 percent in 2027 and 50 percent in 2028)”. The proposed austerity also calls for “freezing base salaries in nominal terms during 2026–28,” as well as freezing promotions and career progressions over 2026–30,” and “strict ceiling limiting overtime.”
Furthermore, the IMF recommends “restricting new hires over (2026–30) to priority sectors (health, education and justice).”
According to the IMF, these measures should also involve “a clear and well-targeted communication strategy to to help build public trust and secure stakeholder buy-in for fiscal consolidation and expenditure realignment.”
“The narrative should explain why consolidation is necessary, how it benefits the population, and what safeguards are in place to protect the most vulnerable. Transparency is key—the authorities must share data, timelines, and trade-offs in simple, consistent language that emphasizes fairness and social protection. Multiple channels should be used to ensure broad outreach and engagement, including traditional media, and digital platforms,” the IMF urges.
The Mozambican government approved, on 13 January, after weeks of uncertainty, the payment of 40% of the 13th salary for 2025 to public employees, state agents, and pensioners, to be distributed by this month.
The decision was made during a Cabinet meeting “after a meticulous analysis of macro-financial data,” said Mozambique’s Secretary of State for the Treasury, Amílcar Tivane, in statements to journalists, acknowledging the “reduction” compared with the February 2025 payment of 50% of the 13th salary for 2024.
Tivane explained that the first group of employees, covered by levels 1 to 11 of the Single Salary Table (TSU) — including minimum-wage workers, primary and general secondary school teachers, health professionals and others at the base of the salary pyramid — would receive the 13th salary in January. Employees from level 12 upwards, including senior technical staff, would receive the 13th payment during February, he added.
The government paid 30% of the 13th salary in 2023 (for the previous year), increasing to 50% over the following two years, clarifying that this year’s decision (relating to the 2025 payment) was made after a “meticulous analysis” of macro-financial information and economic growth prospects.
Mozambique’s Secretary of State for the Treasury reminded that payment of the 13th salary to public employees and state agents is a legal entitlement, but clarified that it is also legally conditioned on budgetary capacity and the availability of financial resources for the purpose.
Source: Lusa
