USD salary rise, bonus for Zimbabwe civil servants

The Treasury has earmarked substantial funds to increase the remuneration of government employees, with a particular focus on raising the US dollar salary component. This move aims to cushion workers from the effects of the recent devaluation of the Zimbabwe Gold (ZiG) currency against the US dollar.

The revised remuneration package will prioritize lower-income civil servants, according to officials. It will be discussed at the upcoming National Joint Negotiating Council (NJNC) - the platform for negotiating terms between the Government and public sector workers' representatives. In addition to the salary increase, the Government has confirmed its commitment to paying annual bonuses this year, with consultations on the timing of the 13th cheque nearing completion.

Speaking to The Sunday Mail, Public Service, Labour, and Social Welfare Minister July Moyo said that Treasury had already allocated US dollars for the salary adjustments.

"The Government has set aside a significant amount in US dollars to ensure that all civil servants benefit from salary adjustments," said Minister Moyo. "Under the President's directive, we have prioritized the upliftment of lower-income employees to close the wage gap."

Minister Moyo expressed optimism that the proposed salary adjustments would be acceptable to both the Government and the workers. He emphasized the urgent need to address financial challenges faced by civil servants at the lower end of the wage scale.

"While senior officials can manage with their current salaries, it is essential to support those at the bottom of the pay scale. Once recommendations are finalized, we are confident the Government will adopt proposals that address the needs of lower-income workers," he added.

On the issue of bonuses, Minister Moyo confirmed that payment modalities are being finalized. "We will make an announcement after consulting with Treasury, but the bonus will certainly be paid," he stated.

Zimbabwe Confederation of Public Sector Trade Unions chairperson Mrs. Cecilia Alexander welcomed the Government's commitment to paying this year's bonus.

"In April, we agreed with the Government to index salaries to the US dollar exchange rate, though part is paid in ZiG," said Mrs. Alexander. "When ZiG devalues, the ZiG component is adjusted in line with the exchange rate to maintain value. However, this devaluation occurred after workers had been paid, short-changing them."

She added that ongoing discussions are aimed at addressing this discrepancy. "Regarding the bonus payments, we have asked the Government to follow last year's approach, where 50% of the bonus was paid in November and the remaining portion in December."

This latest move by Treasury is expected to bring relief to government employees, particularly those struggling with the cost of living as a result of the ZiG devaluation.