Minimum Wage in Mozambique – Frequently Asked Questions

Is there separate minimum wage legislation in Mozambique?

Minimum Wages Law is regulated under Mozambique Labour Law (Law no 23/2007) article no 108 (5). There are also ministerial decrees regulating minimum wages but no separate "legislation" on MW exists.

Do one or more minimum wage/s, exists in Mozambique?

In Mozambique, minimum wages are determined by sector. There for it, 11 sectors: 1 -Agriculture, livestock, hunting and forestry; 1a: Sugar; Fisheries; 2a: Kapenta; Mining; Manufacturing; Electricity, gas and water; Construction: Non-financial services; Financial activities; Public administration, defence and security.

At what level are minimum wages determined?

As per article 108 (5) of Law no 23/2007 the government should set "national minimum wages".

On what basis is/are minimum wage/s declared?

There are other criteria such as monthly food basket, inflation and country´s economic performance. Te minimum wage is established annually and updated annually as well.

In case of daily/weekly/monthly minimum wage, are number of working hours considered while fixing minimum wages?

Article 85 of law no 23/2007 says, normal working hours should not exceed 48 hrs a week or 8 hrs per day. Though are also provisions to increase or decrease working hours under certain conditions.

Who all are involved in setting minimum wage?

AS per Mozambique Labour Law 2007 (Law No. 23/2007), article 108 (5), the Government in consultation with Consultative Commission on Employment shall set the national minimum wage or wage applicable to categories of employees. There is the so called tripartite negotiation where the three parties sit together for two months and negotiate the minimum wage as per sector. CTA - Confederação das Associações Económicas (Confederation of Business Association) - Employers Associations of Mozambique is the single employers that sit in the tripartite commission. OTM and CONSILMO are two trade union confederations in Mozambique.

How are upratings (adjustments) of minimum wages decided upon?

The upratings are decided after the consultation of employer and trade union representatives. Government fixes the final figure for each activity sector after the two parties are heard. This process takes almost two months.

Which are the components of minimum wages Mozambique?

Minimum wages in Mozambique consists of only fixed component.

How frequently is the fixed component of minimum wages updated?

Minimum wages are updated every April, after having talks which start in February of each year.

What are the yardsticks on which minimum wage revisions are based?

The minimum wage in Mozambique is determined by sector and the percentage of the year adjustment is subject to several factors, among them the country's economic performance in general and performance of each economic sector during the same period. The update of the minimum wage takes into account many variables such as inflation, consumer price index and basket.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

What is the incidence of Minimum wage(s) in the national labour force (wage earners only)?

The incidence of minimum wages in the national labour force is over 70%.

Who all regulate minimum wage compliance?

As per article 259 (1) of law no 23/2007 labour inspectorate shall monitor the legality of labour matters and supervise the compliance by employers and employees (also refer to article no 260(1) of law no 23/2007). Also the National Inspectorate Board is responsible for undertaking this task. They act upon denounce or compliance.

Which legal sanctions can be applied if compliance is lacking?

As per article 267 (1a) of law no 23/2007, when violation of rules pertains to workers in general, fine imposed shall range between 5-10 times of minimum wages, depending upon the seriousness of violation. It can also be imprisonment or payment of arrears as per Mozambican Labour Law. Mozambique Labour Inspectorate Publicizes periodically organizations and or employers that do not observe the Mozambican labour law on papers, radio and TV.

Are sanctions often being applied?

Not applicable as per law

Are employer and/or trade union representatives involved in compliance procedures?

As per article 139 (d) of Law no 23/2007 employer’s organizations and trade unions should collaborate with labour inspector, under the provisions of law in monitoring the application of labour legislation.

To whom/where can individuals complain, if they think they are earning less than minimum wage?

According to article 54 (5i) of the Law no 23/2007, employees have the right to go to Labour Inspectorate or authorities with Labour jurisdiction, whenever their rights are threatened. Whenever a dispute arises, both the parties can consult anybody of their choice for dispute resolution via conciliation, mediation or arbitration (Article 183 of law no 23/2007).