MOZAMBIQUE

This report updates the Anker Living Wage Reference Value for Mozambique to June 2023. This value was MZN 7,684 (USD 120) for 2022 in the original report, comprised of a net living wage (i.e. take-home pay) of MZN 6,541 (USD 102) per month plus MZN 1,143 (USD 18) which would need to be paid by law in social security contributions and income tax on the living wage. The updated values for June 2023 are: (i) Anker Gross Living Wage of MZN 8,093 (USD 127), comprised of a Net living Wage of MZN 6,987 (USD 109), plus social security contribution and income tax of MZN 1,107 (USD 17). Inflation in this period was 6.81% and it increased the net living wage. Without accounting for inflation, the living wage estimated in 2022 would not be sufficient for workers and their families to have a basic but decent standard of living in 2023, because the purchasing power of the living wage would have decreased. Social security contributions and income tax were calculated using the most up-to-date tax laws.

This report updates the Anker Living Income Reference Value for rural Mozambique to June 2023. The living income was estimated at MZN 9,121 (USD 142) in the original 2020 report. The update takes into account the amount of inflation to June 2023 for the country since mid-2020. Accumulated inflation in this period is estimated to be 26.8%. Without accounting for inflation, the living income estimated in 2020 would not be sufficient for families to have a basic but decent standard of living in 2023, because the purchasing power of the living income would have decreased.