{"id":54806,"date":"2024-01-29T11:07:19","date_gmt":"2024-01-29T11:07:19","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected"},"modified":"2024-01-29T11:21:11","modified_gmt":"2024-01-29T11:21:11","slug":"implementation-of-the-tsu-was-more-costly-than-expected","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected","title":{"rendered":"Implementation of the TSU \u201cwas more costly than expected\u201d"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>The implementation of the Single Salary Scale (TSU) in Mozambique, strongly contested by several sectors of the public service, cost around 28.5 billion meticais (\u20ac410 million). \u201cThe June 2022 implementation of the Tabela Salarial U\u0301nica \u2013 TSU (single salary scale)\u2014 was more costly than expected,\u201d the International Monetary Fund (IMF) says.<\/p>\n

\u201cThe expected initial cost of the wage bill reform over the period 2022\u201323 was MT19.2 billion (1.4 percent of GDP), however, the implementation of the TSU ended up being MT28.5 billion (2.1 percent of GDP),\u201d an IMF document<\/b> evaluating Mozambique\u2019s assistance program states.<\/p>\n

The IMF, which defends the need for this measure, explains that \u201cthis overrun\u201d in implementation costs was \u201cwas due primarily to difficulties\u201d in implementing \u201ca complex wage bill reform\u201d, including \u201cincorrect mapping of public servants to the new pay scale\u201d.<\/p>\n

\u201cUnderestimating the cost of the TSU,\u201d led to \u201cinsufficient wage bill saving measures to meet the cost,\u201d reads the report.<\/p>\n

\u201cThe additional cost was about 2.5 percent of GDP in 2022. The fiscal slippage was financed primarily through expensive domestic financing,\u201d the document warns.<\/p>\n

The IMF emphasizes that the reform is \u201caimed at improving the predictability of wage bill spending\u201d by \u201cunifying the salary scales and streamlining supplementary pay\u201d among the various classes and areas of the public service.<\/p>\n

It also states that over the last decade, the civil service wage bill in Mozambique \u201chas increased from 10 percent of GDP in 2017, to 17 percent of GDP in 2022\u201d, growth \u201cdriven primarily by salaries rather than hiring\u201d.<\/p>\n

\u201cSince 2016, average compensation for employees has grown three times as fast as GDP per capita, whereas the growth in public sector employment has lagged population growth,\u201d the IMF concludes.<\/p>\n

The TSU, approved in 2022, defines and harmonizes rules and criteria for setting remuneration for public services, holders and members of Public Bodies and the Administration of Justice, \u201cwith the main objective of decompressing the salary mass to levels in line with the budgetary sustainability, thus creating fiscal space to meet other types of expenses, such as investment\u201d, the government previously explained.<\/p>\n

\u201cHowever, given the need to bring the impact figure to the initially predicted level, the Government has been implementing additional measures,\u201d reads the budget proposal for 2024, which gives as examples the audit of employee payrolls and state agents, civil and military, the review of leadership, representation and location allowances, the retirement process of around 25,278 state employees and agents and the \u201crationalization of new admissions\u201d.<\/p>\n

\u201cThese measures essentially aim to reduce the overall impact of the policy to approximately that predicted at the time of its implementation,\u201d the government adds.<\/p>\n

It also states that \u201cas a result of the exercise\u201d to \u201creduce the weight of the wage bill and other personnel expenses\u201d, these measures are set at more than 199,375 million meticais (\u20ac2,878 million) in the 2024 budget, the equivalent to 13% of GDP, one percentage point less than in the previous year.<\/p>\n

With the implementation of the TSU, the government states that it hopes to \u201cimprove its salary and remuneration expenditure programming processes\u201d, lowering the wage bill ratios from the previous 15% of GDP to 14.4% last year and 12.5% in 2024, \u201cin line with international and regional parameters\u201d.<\/p>\n

The implementation of the new salary scale in the public service is being strongly contested by various professional classes, such as doctors and teachers, with a record of salary delays and cuts in security forces criticised by various segments of the Mozambican state apparatus.<\/p>\n

Approved in 2022 with the aim of eliminating asymmetries and keeping the state wage bill under control in the medium term, its launch caused salaries to soar by around 36%, from 11.6 billion meticais\/month (\u20ac169 million) to 15.8 billion meticais (\u20ac231 million).<\/p>\n

The new salary matrix in the State has 21 levels, from 8,756 to 165,758 meticais (\u20ac134 to 2,580 euros), instead of 103 levels, as previously.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. The implementation of the Single Salary Scale (TSU) in Mozambique, strongly contested by several sectors of the public service, cost around 28.5 billion meticais (\u20ac410 million). \u201cThe June 2022 implementation of the Tabela Salarial U\u0301nica \u2013 TSU (single salary scale)\u2014 was more costly than expected,\u201d the International Monetary Fund (IMF) says. \u201cThe […]<\/p>\n","protected":false},"author":84,"featured_media":54805,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,281,283],"class_list":["post-54806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nImplementation of the TSU \u201cwas more costly than expected\u201d - Mozambique<\/title>\n<meta name=\"description\" content=\"The implementation of the Single Salary Scale (TSU) in Mozambique, strongly contested by several sectors of the public s ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Implementation of the TSU \u201cwas more costly than expected\u201d\" \/>\n<meta property=\"og:description\" content=\"The implementation of the Single Salary Scale (TSU) in Mozambique, strongly contested by several sectors of the public s ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\" \/>\n<meta property=\"og:site_name\" content=\"Mozambique\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-29T11:07:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-29T11:21:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2024\/01\/sm_1706514503.166507.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"825\" \/>\n\t<meta property=\"og:image:height\" content=\"510\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Implementation of the TSU \u201cwas more costly than expected\u201d\",\"datePublished\":\"2024-01-29T11:07:19+00:00\",\"dateModified\":\"2024-01-29T11:21:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\"},\"wordCount\":633,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2024\/01\/sm_1706514503.166507.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mozambique\",\"Mozambique\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/implementation-of-the-tsu-was-more-costly-than-expected\",\"name\":\"Implementation of the TSU \u201cwas more costly than expected\u201d - 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