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Increase in Salaries for Civil Servants in United States Dollars

Civil Servants employees have begun receiving enhanced salaries in United States dollars, with the local currency component now tied to the prevailing official exchange rate. This adjustment aims to safeguard their purchasing power against fluctuations in the exchange rate and to counteract the impact of inflation on their salaries.

The recent increase in salaries, agreed upon during negotiations between the Government and public sector representatives under the National Joint Negotiating Council (NJNC), aims to address the erosion of civil servants’ purchasing power caused by inflation. Some employees have already started receiving the updated pay, which includes a flat US dollar component raised to US$320 from US$300.

The agreement reached at the NJNC meeting is provisional, with further discussions planned for April to finalize details. Ministry of Public Service, Labour and Social Welfare Permanent Secretary Mr. Simon Masanga confirmed the salary adjustment, stating that comprehensive details will be provided once available.

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Representatives from the Zimbabwe Confederation of Public Sector Trade Unions expressed appreciation for the adjustments, particularly the indexing of the local currency portion to the exchange rate. They emphasized the importance of ensuring that salaries provide employees with a decent standard of living and advocated for the adjustment to be backdated to January 1, 2024, to offset previous inflationary losses.

While civil servants welcome the salary improvements, some, like Mr. Jubilant Masungise, highlight the importance of backdating the adjustments to account for past erosion of purchasing power. The Government’s decision to integrate Covid-19 allowances into taxable salaries earlier this year further underscores its commitment to improving workers’ welfare.

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