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Public Management

Zimbabwe ups wages by 100%

Thursday, 23 March 2023 16:20
Zimbabwe ups wages by 100%

(Ecofin Agency) - In 2022, Zimbabwe posted a 284% inflation, which greatly impacted residents’ cost of living and reduced purchasing power. To improve the general welfare of the population, civil servants especially, the government decided to double salaries.

The Zimbabwean government has announced a 100% salary increase for public sector workers amid rising inflation. The information was reported by several media outlets citing the Ministry of Finance.  

This wage increase concerns civil servants, parliamentarians, independent commissions, subsidized institutions, and pensioners. In addition to salaries, several allowances and benefits are affected by this upward review. This decision will have a retroactive effect starting on February 1 for the security sector and April 1 for other sectors.

The increase in cushioning and COVID allowances from $200 to $250 across all sectors except for the health sector takes effect on March 1, 2023, for the security sector and April 1, 2023, for the rest of the civil service, taking into account March 2023 developments in the sector,” said the permanent secretary of the Finance ministry George Guvamatanga.

The Zimbabwean government's move comes as underpaid teachers plan a strike to demand a pay rise. Indeed, the country has a high inflation rate that is impacting purchasing power.

According to data from the Reserve Bank of Zimbabwe (RBZ), the country's blended inflation for January 2023 stood at 229 percent. For this year, the International Monetary Fund (IMF) expects annual headline inflation to be in triple digits with the rate falling to 204.6 percent from 284 percent in 2022. Real GDP growth is expected to reach 2.8 percent in 2023, from 3 percent in 2022, supported by a better agricultural season, lower inflation, and the easing of pandemic-related requirements.

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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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