HARARE – Government workers in Zimbabwe have begun receiving a backdated salary increase, boosting the lowest paid employee’s monthly wage from US$324 to US$364, effective September 1st, 2024. The Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) announced the US$40 increment following protracted negotiations with the government.
The increase, however, has been met with mixed reactions, with some unions expressing concerns that it falls short of addressing the ongoing economic challenges faced by civil servants.
The ZCPSTU’s statement detailed the outcome of the negotiations: “In the end, the employer committed to pay as follows; Review of salary by US$40 across the board for the grades of Deputy Director and below with effect from September 1, 2024. Resultantly, the lowest Grade B1 will move from a salary of US$324 to US$364 effective 1st of September 2024.”
The union also confirmed the government’s commitment to paying the annual bonus in two installments, in November and December 2024, with payment details to be released shortly.
“The 2024 bonus will paid in November and December 2024 with the payment modalities to be announced soon,” the statement read.
The negotiations were fraught with challenges. Workers’ representatives initially pushed for a US dollar-denominated increase, citing the recent volatility of the Zimbabwean dollar (ZiG). However, the government cited budgetary constraints, attributing its limited capacity to pay to the ongoing El Niño-induced drought and lower-than-expected US dollar revenue inflows.
The government also highlighted its policy shift towards de-dollarisation and the low ZiG pay for certain civil service sections facing difficulties with statutory deductions. The government’s initial offer of US$31 million, converted to local currency, was rejected twice by workers’ representatives as insufficient. The offer was eventually increased to US$41 million, but the government insisted on payment in local currency at the prevailing bank rate, effective September 1st, 2024.
“The employer cited the drought, lower than expected United States Dollar revenue inflows and the government’s policy shift towards de-dollarization as reasons for the inability to pay more than the tabled offer. Also cited was the very low ZiG pay for sections of the civil service whose statutory deductions are in limbo and that the 2024 Mid-term budget has no provision for a salary adjustment,” the ZCPSTU explained.
Yesterday, many civil servants received their backdated payments, leading to increased activity in banks and supermarkets across Harare and Bulawayo. The ZCPSTU president, Mrs Cecelia Alexander, confirmed the salary increase, stating that the lowest-paid civil servant would now receive the equivalent of US$364.
She provided further details from the October 14th meeting at Kaguvi Building, Harare: “Following a series of meetings by the NJNC, the two parties later met on October 14, 2024 at Kaguvi Building, Harare, and agreed to the following: Review of the salary by US$40 payable in local currency at the prevailing official exchange rate, across the board for the grades of deputy director and below with effect from September 1, 2024,” she said in a statement.
“This will result in the lowest Grade B1 getting a total package of US$364,45 from US$324,45.”
Mrs Alexander also noted that bus fares had been reviewed effective October 1st, and that the government would share the employees’ job evaluation exercise by the following Monday.
Public Service, Labour and Social Welfare Minister July Moyo recently commented on the salary review, stating that the government had allocated a significant amount in US dollars to ensure that salary adjustments benefited all civil servants.
“The Government has allocated a significant amount in US dollars to ensure that salary adjustments benefit all civil servants. However, under the President’s directive, we have prioritised the upliftment of lower-income employees to bridge the wage gap,” said Minister Moyo.
Despite the increase, concerns remain. Dr Sifiso Ndlovu, chief executive officer of the Zimbabwe Teachers Association, noted that while the adjustment was acknowledged, it falls short of meeting teachers’ expectations.
“The plea from the workers is that the salary adjustment should have been accompanied by an increase in the US dollar component of the salary as the local currency has not fully stabilised in the market. The adjustment comes at a time when salaries in the local currency had fallen by at least 42 percent in the official market and 67 percent in the informal sector. So, generally, the adjustment remains low and does not bring much excitement to workers,” said Dr Ndlovu.
This sentiment reflects the broader concern that the increase, while welcome, may not adequately address the persistent economic challenges faced by Zimbabwe’s civil servants. The impact of the recent exchange rate shift from US$1:ZiG14 to US$1:ZiG25 remains a significant factor in the ongoing debate surrounding fair compensation for public sector workers.
