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News > World

Zimbabwe Gov't Cedes to Workers' Unions, Offers 29% Pay Hike

  • Zimbabwe Finance Minister Mthuli Ncube

    Zimbabwe Finance Minister Mthuli Ncube | Photo: Reuters file

Published 21 March 2019
Opinion

According to the unions, the Zimbabwean government says the almost-one-third percent salary hike serves to counter double-digit inflation and avert subsequent strikes.

Workers across Zimbabwe have accepted a 29 percent increase after the government signed an agreement with public workers’ union, Apex Council. The decision was made after weeks of strikes and talks carried out with members of several civil sector groups.

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“A cost of living adjustment of US$400 million (£303 million) (will) be effected across the board for all members of the public service with effect from 1 April,” the agreement declared.

Apex Council, which represents about 16 public sector unions, stated that the increase translates to the lowest-paid worker earning a monthly gross salary of US$570, up from US$441.

According to the unions, the Zimbabwean government says the almost-one-third percent salary hike is a stop-gap which will serve to counter double-digit inflation and avert subsequent strikes.

In January, Civil servants had twice rejected lower wage-increase offers.

Finance Minister Mthuli Ncube has also assured that salary increases would be within the country’s US$8 billion budget that has been allotted for 2019.

The minister further added that Zimbabwe’s budget will be slashed in half and that the annual inflation rate is expected to fall below 10 percent, by the end of the year, down from 59 percent in February.

Last month, Zimbabwe’s central bank introduced a lower-value transitional currency called the RTGS dollar.

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