Mozambique President Filipe Nyusi on Tuesday cancelled the December bonus pay for contracted civil servants, ending an annual trend where government staff often got extra perks at the end of the year.
In a speech to parliament, President Nyusi cited harsh economic challenges but said all pensionable employees will receive their extra pay commonly known as the ‘13th salary’.
In a two-hour televised address, President Nyusi told the parliament in an annual state of the nation address that the country was facing the burden that the Single Wage Scale (TSU) created in a bid to control public recurrent expenditure.
TSU is yet to be implemented but the parliament has started discussions to regularise the policy which is supposed to iron out payments for salaries and other allowances.
According to President Nyusi, the TSU intends to balance and unify the payment of all civil servants regardless of their position in the country.
“In the past, there were many issues of favouritism, friendliness and even corruption in the civil service as some ministries paid more than others when the state is the same employer. Let's put an end to that.”
“The moment demands cost containment and some sacrifices. We are not going to pay bonuses for contracted civil servants but pensioned staff as it is a special layer in society will receive”, President Nyusi said during the address.
In March this year, the International Monetary Fund announced the resumption of its cooperation with Mozambique after a six-year ban over the $2 billion graft scandal, locally known as the ‘fish scandal.’ Earlier this month senior figures in Mozambique including the son of former President Armando Guebuza, Armando Ndambi Guebuza, were convicted for getting kickbacks in the deal.
The World Bank and other international lenders too have resumed their cooperation with Maputo.
“Announcements like these had to be made with advance notice so that each one of the employees can adjust personal planning. There are approximately 400,000 employees who are not paid and this can create social problems”, Arnaldo Chalawa a legislator from opposition party Renamo said.