Harare – The Zimbabwean government has announced a significant increase in the US dollar component of civil servants’ salaries, aimed at cushioning the impact of the recent Zimbabwean dollar devaluation. This move follows consultations between the government and representatives of public sector workers.
The Minister of Public Service, Labour, and Social Welfare, July Moyo, confirmed the allocation of substantial US dollar funds by the Treasury for salary adjustments.
“The Government has allocated a significant amount in US dollars to ensure that salary adjustments benefit all civil servants,” Minister Moyo stated.
He emphasised a key directive from the President: “However, under the President’s directive, we have prioritised the upliftment of lower-income employees to bridge the wage gap.”
This directive, he clarified, has been communicated to negotiators from both the government and civil service unions.
The new remuneration package will be formally presented to worker representatives at the upcoming National Joint Negotiating Council (NJNC) meeting. The NJNC serves as the platform for negotiations on conditions of service between the government and public sector worker representatives. Minister Moyo expressed optimism about the outcome of these negotiations.
He highlighted the disparity in the impact of the devaluation, stating, “While we understand that top-level officials can manage with their current salaries, it is imperative that we provide adequate support to those at the bottom of the ladder.”
Beyond salary adjustments, the government has also committed to paying annual bonuses to all civil servants this year. Minister Moyo confirmed this commitment, although details regarding the payment schedule are still being finalised.
“On the bonus, we will make an announcement after consulting with Treasury, but the bonus will certainly come,” he said.
The news of the salary increase and bonus payment has been welcomed by the Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU). Cecilia Alexander, chairperson of the ZCPSTU, commented on the situation, stating: “You may be aware that in April, our agreement with the Government was that salaries are indexed to the US dollar exchange rate although the other part is paid in ZiG.”
She explained the impact of the devaluation on workers: “This implies that when ZiG is devalued, the ZiG component will be raised in congruence with the prevailing exchange rate, maintaining the same value. It is only that the devaluation happened after workers had received their salaries and people were short-changed.”
The union has been actively engaging with the government to address this issue, with ongoing deliberations. Regarding the bonus, Alexander expressed the union’s preference for a payment schedule similar to last year.
“For bonus payments, we want the Government to do the same as last year when 50 percent of the bonus was paid in November, with the remainder being paid in December,” she said.
The government’s commitment to both salary adjustments and bonus payments represents a significant step towards addressing the financial challenges faced by many civil servants. The prioritisation of lower-income employees in the salary adjustments reflects a conscious effort to reduce income inequality within the public sector. The upcoming NJNC meeting will be crucial in finalising the details of the new remuneration package and ensuring its equitable implementation across all levels of the civil service.
The details of the bonus payment schedule, expected to be announced shortly, will further clarify the government’s commitment to supporting its workforce through these challenging economic times.
