This position appears among dozens of recommendations in the IMF’s report following its regular consultations with Mozambique, in which it argues that “the reduction in expenditure should come mainly from containing the wage bill,” amounting to a “reduction of three percentage points” of Gross Domestic Product (GDP).
“Given that Mozambique’s wage bill—one of the highest in the region, representing 14.4% of GDP in 2024—accounts for about half of total government expenditure,” the IMF states in the report approved on February 13.
It adds that “by reducing the public sector wage bill to 11% of GDP by 2028, space would be created to increase capital investment and domestically financed social spending, which would recover under the reform scenario.”
The IMF’s “recommended” measures include “the elimination of the 13th salary in 2026, with partial reinstatement thereafter,” at 25% in 2027 and 50% in 2028. The proposed austerity package also includes “freezing base salaries in nominal terms from 2026 to 2028,” as well as “freezing promotions and career progression between 2026 and 2030,” and the “imposition of a strict cap on overtime hours.”
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In addition, the IMF advocates “restricting new hiring” until 2030 to priority sectors such as “health, education, and justice.”
According to the IMF, these measures should also involve “a clear and well-targeted communication strategy to help build public trust and ensure stakeholder support” for “fiscal consolidation and expenditure realignment.”
“The narrative should explain why consolidation is necessary, how it benefits the population, and what safeguards are in place to protect the most vulnerable. Transparency is essential—the authorities should share data, timelines, and compensatory measures in simple and consistent language that emphasizes equity and social protection. Multiple channels should be used to ensure broad dissemination and engagement,” the IMF urges.
The Mozambican government approved on January 13, after weeks of uncertainty, the payment of 40% of the 13th salary for 2025 to public servants, state agents, and pensioners, with payments running through this month.
The decision was taken at a meeting of the Council of Ministers “after a meticulous analysis of macro-financial data,” said Amílcar Tivane, Mozambique’s Secretary of State for the Treasury, speaking to journalists afterward, acknowledging a “reduction” compared with the 50% payment made in February 2025 for the 2024 13th salary.
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The official explained that the first group of employees classified in levels 1 to 11 of the Single Salary Table—including minimum wage earners, primary and secondary school teachers, health professionals, and others at the base of the salary pyramid—would receive the 13th salary in January. Employees classified from level 12 upward, including senior technicians, would receive the 13th salary during February, Tivane added.
The government paid 30% of the 13th salary in 2023 (for the previous year), increasing it over the following two years to 50%. Authorities clarified that this year’s decision (relating to the 2025 payment) was taken after a “meticulous analysis” of macro-financial information and economic growth prospects.
The Secretary of State for the Treasury recalled that the payment of the 13th salary to public servants and state agents is a legally established right, but clarified that it is also legally conditional on the existence of budgetary capacity and the availability of financial resources.
