IMPACT – MEDIUM
What is the change? Minimum wage rates will increase between 6 and 18 percent in most sectors of Mozambique’s economy.
What does the change mean? Companies are now subject to the new, higher pay thresholds. They will also see an increase in work permit application fees, which are tied to industry-sector minimum wage rates.
Background: Mozambique does not have a single minimum wage, but instead sets wage thresholds by economic sector. Below is a look at wage increases in key industry sectors for 2018 (all figures in Mozambican meticals).
BAL Analysis: Employers should factor the new minimum wages into their budgets for foreign national employees, especially because work permit application fees are tied to minimum wage rates.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.
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