The statutory minimum wage for industry and service sector employees has risen by 13 per cent to 1,443,170 meticais ($57.7) a month and for agricultural workers by 11.5 per cent to 1,023,800 meticais (roughly $40) a month. The rise, announced by the government in early May, follows recent negotiations with employers and the unions, who had called for a rise of 9.6 per cent and 18 per cent respectively. Annual inflation in Mozambique stood at 14 per cent in 2005, according to the Mozambican news agency AIM.

Commenting on the new wages Amos Matsinhe, head of the largest union federation, OTM, pointed out that the approved minimum wage does not solve the workers problem, because a basic basket of goods for a five member family costs 3.7 million meticais a month. Meanwhile, agricultural employers spokesman Jose Chilengu has said that the new minimum pay is above our capacity. The new wages are backdated to 1 April.

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