The new remuneration law for Mozambican state employees and agents is expected to have a maximum budget burden of 19 billion meticais, but reduce annual costs in subsidies, the Minister of Finance announced Wednesday.

"We have incorporated [the amounts] in the salary: it is 19 billion meticais" of impact, "but we are saving 10 billion meticais that we should find every year" through the increases in subsidies induced by the salary updates, he said.

Adriano Maleiane was speaking at a press conference in Maputo, clarifying the proposed law approved by the Council of Ministers on August 31, and sent to the Parliament for voting - still without schedule.

A single law will replace different laws governing salaries in the civil service and 103 salary scales will give way to two with proportional reference criteria between steps in relation to the top of the list - where the President of the Republic is - and with no monetary values entered in the proposal, he explained.

There is also a simplification of allowances, progressions, and other mechanisms. 

The change "cannot imply a reduction in salaries," he said, mentioning that work is underway to fit the 450,000 employees into the new pay scales.

The expected impact in a first "wholesale framework" is 19 billion meticals, and Maleiane believes this to be an excess.

"The final value will depend on the frame work," which is being "refined" with the support of computer means. 

The clarifications come a week after judges and magistrates reacted to the Government's proposal by delivering a petition to the Portuguese Parliament saying that fixing salaries in the sector is the exclusive competence of parliament, according to the Constitution.

Adriano Maleiane said today that the single bill does not affect the statutes of the judiciary or any other professional class.

Salaries and perks in the civil service take center stage every time they are up for debate.

In May, the parliament approved in generality the Statute of the Parliamentary Official and Agent, but the measure generated several criticisms justified by the difficulties the country is going through with covid-19 and armed attacks in the north.

After the contestation, the debate on the statute in specialty was removed from the parliamentary agenda, halting its application.

Lusa Agency