US$20 PAY INCREASE FOR CIVIL SERVANTS newsdzeZimbabweNewsdzeZimbabwe

US$20 PAY INCREASE FOR CIVIL SERVANTS newsdzeZimbabweNewsdzeZimbabwe

Public sector workers have begun receiving enhanced salaries in US dollars, while the portion of their salaries in local currency has now been linked to the prevailing official exchange rate in a development expected to enhance the purchasing power of civil servants.

Linking the portion of salaries to the Zimbabwean dollar to the prevailing exchange rate will ensure that their purchasing power is insulated against exchange rate movements.

In addition, the US dollar increase is expected to restore the value of government employees’ wages after January’s COVID-19 allowances were converted into taxable salaries.

In recent months, civil servant salaries have been eroded by inflation, and the latest adjustment is expected to restore their purchasing power in a sustainable manner.

Some civil servants began receiving the new wage, whose fixed US dollar component is now US$320, up from US$300, on Friday.

The latest salary adjustment was the result of a temporary agreement reached between the government and representatives of public sector workers within the framework of the National Joint Negotiating Council (NJNC) held on Thursday.

The NJNC is expected to meet again in April to chart a way forward.

Permanent Secretary of the Ministry of Public Service, Labor and Social Welfare, Mr Simon Masanga, on Friday confirmed the salary adjustment, saying a formal notification would be issued this week.

“The government’s chief negotiator in wage negotiations, Mr Nobert Machingek, has informed me that they have made significant progress with employees, and I understand that payments have begun,” he said.

“I have not yet been fully informed of the contents of the document, but we will present a comprehensive position once we have all the details.”

Speaking to our office in Harare yesterday, Mr Machingeke said: “Yes, we had a meeting and agreed on something, but I am not in a position to share the contents of the outcome of the meeting.”

In a separate interview, President of the Zimbabwe Federation of Public Sector Trade Unions, Ms Cecilia Alexander, commended the government for making the amendments.

“We had a productive meeting with the employer. Linking the local currency component to the prevailing exchange rate is testimony that the government is now committed to preserving the value of a worker’s salary.

“Furthermore, the increase to $320 is a positive step toward what we want,” she said.

“However, from what we have agreed, we will soon sit down until we dispose of what is left because our position is to ensure that the employer raises the salary to provide the worker with a decent lifestyle, with all the basics provided.”

She said the umbrella civil servants union is pushing for the latest amendment to be retroactive to January this year.

“We want to push for a payment to be made retroactive to January 1, 2024 so that employees can recover what they have lost over the past months due to inflation.

“At the moment, the employer has indicated that we are still at the beginning of the year and revenues are still low, but he has promised to improve salaries in line with our requests,” Ms Alexander added.

The civil servant, Mr Jubilant Masunges, praised the government.

“We have always appealed to the government to peg our salaries to the US dollar to hedge against inflation.

“I think they have made a good improvement.

“However, we expected our salaries to be out of date because the local currency component has been eroding for months,” he added.

The government introduced a $75 COVID-19 subsidy in 2020 and gradually increased it to $300, but because it was a subsidy, it was exempt from tax.

In January, this was reviewed and the allowances became part of the pension.

As improving worker welfare remained a top priority, a 15-member team was appointed, with a mandate to negotiate in the NJNC for two years starting January 1 this year. Sunday mail




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