Government suspends new hires of employees starting this semester. It has no money to pay salaries

Governo suspende novas admissões de funcionários a partir deste semestre. Não tem dinheiro para pagar salários

The Center for Democracy and Development (CDD) had already warned that the government is having trouble paying the salaries of state employees. Curiously, today is the second day of July and many state employees have still not received their salaries for June.

And it is because of this pressure of the wage bill on the state budget that the government has decided to suspend new hiring in all sectors in the second half of 2023 and for the period 2024-2026.

According to a document quoted by TV sucesso, only an average of 3,200 new hires per year will be allowed exceptionally.

The government says in the same document that an annual budget of 700 million meticais will be allocated for new hires, which represents an average of 0.06% of gross domestic product (GDP) per year, as well as ensuring that minimum hiring levels are maintained in priority sectors, with a view to guaranteeing improvements in the provision of public services,

The CDD explained at the time that the pressure on the government is due to the need to reduce the civil service wage bill to 10.8% of Gross Domestic Product (GDP), following the recommendations of the International Monetary Fund.

Last year alone, with the infamous Single Wage Table (TSU), the government spent 186 billion meticais, around 16.5% of GDP, on wages and salaries, compared to 12.5% in 2021.

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