Zimbabwe govt workers fight US$ NSSA deductions

The Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) has petitioned the Public Service Commission (PSC) to halt the anticipated deductions from salaries paid in US dollars. The deductions are intended for payments to the National Social Security Authority (NSSA), following a recent grant of permission from the Treasury.

Trade unions representing public service workers have opposed the government's proposal. In a letter dated June 10, 2024, ZCPSTU president Cecilia Alexander highlighted the need for these deductions to be discussed within the National Joint Negotiation Committee (NJNC), ideally linking them to a broader salary review.

Alexander emphasized that the deductions are being considered at a time when ongoing salary review negotiations remain unresolved. She stressed that backdating the deductions to January would significantly reduce workers' disposable income, worsening their financial situation. Alexander noted that for many civil servants, the US dollar salary is their only effective income as their Zimbabwe dollar (ZiG) earnings have been eroded by inflation.

Alexander criticized the lack of consultation prior to granting NSSA permission for these deductions, underscoring the unions' commitment to dialogue on labor matters. According to a PSC circular dated May 28, 2024, the US dollar deductions are in line with Statutory Instrument (SI) 169 of 2021 and would be retroactive to January.

Civil servants oppose the deductions, arguing they will further impoverish them and deplete their earnings. Government workers receive their pay in both US dollars and ZiG, and the new regulation mandates the same ratio for their contributions.