Zimbabwe govt keeps civil servants' salaries at 12% of GDP

The Zimbabwean government has announced that it will maintain civil servants' salaries at 12% of the gross domestic product (GDP), using GDP growth as the benchmark for future salary improvements. This decision comes as public sector workers begin receiving backdated salary adjustments, with the government reaffirming its commitment to ensuring a living wage.

The salary review saw the lowest-paid civil servants receive an increase from US$324 to US$364, effective from September, representing a modest US$40 raise. Additionally, civil servants have been assured of their usual annual bonuses, set to be disbursed next month and in December, following a recent National Joint Negotiating Council meeting.

However, the salary review has faced criticism, particularly from teachers, who have deemed the increment insufficient. Progressive Teachers Union of Zimbabwe president Takavafira Zhou highlighted the need for a salary adjustment that reflects the recent devaluation of the local currency, the ZiG, stating that civil servants deserve an increase that aligns with the depreciation and their cost of living.

"The civil servants did not get an adjustment of the ZiG component, nor did they receive a significant salary increase. This is baffling and nauseating," Zhou commented, noting that the current compensation does not meet the market value following currency depreciation.

During the Employers' Confederation of Zimbabwe's 42nd Annual Congress in Victoria Falls, Public Service, Labour and Social Welfare Minister July Moyo explained that the government has agreed to cap civil service salaries at 12% of GDP, asserting that exceeding this threshold could destabilize the economy.

Moyo stated, "Any country that pays their workers more than 12% of GDP is in trouble," emphasizing that adherence to this guideline is essential for economic stability. He indicated that salary increases would be contingent on GDP growth, suggesting that as the economy improves, so too will civil servants' salaries.

Despite the government's position, teachers' unions have expressed dissatisfaction with the salary adjustments. The Amalgamated Rural Teachers Union of Zimbabwe (Artuz) condemned the recent increment as a product of an "illegal joint negotiating platform." Secretary General Robson Chere criticized the Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) for misrepresenting the outcome, calling for a genuine collective bargaining platform that allows for legitimate negotiations.

Chere argued, "The current outcome of the US$40 increment is a nullity. The exchange rate will wipe away the so-called increment as the bank rate is deliberately fixed below the real market rate."

The tension between the government and civil servants continues as teachers demand fair compensation that reflects their contributions and the economic realities they face.