Public Service Minister July Moyo has announced that the government will raise public sector wages in US dollars, with a focus on boosting salaries for lower-income employees. This move comes after discussions between the government and workers’ representatives.
Moyo confirmed that Treasury has allocated a “substantial amount in US dollars” to ensure all civil servants benefit from the adjustments. He emphasized that the President has directed the government to prioritize lower-income workers to help reduce the wage gap.
Regarding bonuses, Moyo stated, “We will announce the details after consultations with Treasury, but civil servants will certainly receive a bonus this year.”
These comments come amid growing concerns from public sector employees following the recent devaluation of the Zimbabwean dollar (ZiG), which was intended to narrow the gap between official and parallel market exchange rates.
Finance Minister Mthuli Ncube also addressed the issue last week, acknowledging the negative impact of the devaluation on civil servants’ wages and promising an imminent pay rise to help restore their purchasing power.
“We recognize that the induced fall of the ZiG has affected wages, so we are committed to making adjustments to offset the damage,” Ncube said, adding that while it may not fully restore their buying power, the government will aim to mitigate the financial strain.
Civil servants face significant challenges as much of their pay is in local currency, while goods and services are priced in or indexed to the US dollar.
