The Council of Ministers approved modest increases to private‑sector minimum wages on Tuesday, 28 April, after a three‑day negotiation involving the government, employer representatives and the trade‑union federation Consilimo. The agreement establishes 19 sector‑specific minimum wages, ranging from $110 to $319 per month.
The lowest rates apply to workers in agriculture, fishing and cashew processing, whose minimum wage will be $110‑$111 per month. By contrast, employees in tourism and manufacturing will receive $166, those in electricity and gas $200, miners $254, and staff in banking and insurance will earn between $281 and $319. Civil servants, whose wages were doubled in 2023 to $137 under the controversial unified state salary scale (TSU), see no further increase, a decision influenced by International Monetary Fund conditions. The minimum wage for health, education and other public‑sector workers aligns with that for security guards and construction workers at $135.
The negotiations did not cover Kapenta fishing on Lake Cahora Bassa, a sector experiencing a severe decline. Consequently, the minimum wage for Kapenta fishers remains at $78 per month.
According to national statistics, the poverty line is set at $0.70 per person per day, equivalent to $105 per month for a family of five. All newly established minimum wages, except the Kapenta fishing rate, exceed this threshold, though the margin above the poverty line is narrow.
The sector‑based approach reflects the government’s effort to balance wage growth with macro‑economic stability while addressing IMF fiscal requirements. Observers note that the modest adjustments may have limited impact on overall household incomes, especially for workers in the lowest‑paid sectors. Future reviews are expected to consider inflation trends and the performance of key industries, particularly those facing structural challenges such as the Kapenta fishery.
