Online Reporter
Edgar Vhera, Specialist Writer – Agribusiness
THE National Employment Council (NEC) for the agricultural industry in Zimbabwe has reviewed the minimum wages and allowances for workers in the sector. In a notice addressed to all general agriculture sub-sector employers and employees, the NEC announced the new minimum wage structure, effective from June 1, 2025.
“We refer to the collective bargaining agreement (CBA) of 1 June 2025 and announce the general agriculture sub-sector minimum wage schedule as at the interbank rate of US$1: ZWL26.7891 on 22 July 2025,” read the notice.
The 10 worker grades, ranging from A1 to C2, saw minimum salaries revised upwards. The lowest grade (A1) increased from US$75 to US$80 per month, while the highest grade (C2) rose from US$149 to US$159. Other grades received increments ranging between US$5 and US$10.
The NEC also stipulated that workers must be paid 65 percent of their earnings in United States dollars (US$), with the remaining balance in local currency (ZiG).
The accommodation allowance remains unchanged at US$38 or its equivalent in local currency. Fuel and night allowances were each increased by US$1, now standing at US$12 and US$8 respectively.
“The cost of transport, travel, and subsistence allowance will be covered by the employer. For firearm and dog handling duties, employees will receive an additional five percent of their basic monthly wage as an allowance,” the NEC stated.
Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe, confirmed the development, saying it reflects the agreement reached between workers’ representatives and employers.
“Farmers or employers who are unable to meet the new wage requirements may apply for an exemption,” he said.
Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa, described the revised remuneration structure as a fair wage schedule, considering the current cost of living.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, noted that labour is a significant cost driver and warned that the wage increase could reduce the profitability of agricultural enterprises.
“It’s a tricky situation where farmers are caught between the need to remain viable and the responsibility to cater for their workers’ welfare.
“ There is a need to seriously reflect on output prices so that we can afford to pay these decent wages,” he said.
Tobacco Farmers Union Trust (TFUT) president, Mr Edward Dune, added that compensation for workers is becoming an increasing burden for cash-strapped farmers.
“Some farmers are resorting to paying labour costs in kind due to a lack of funds.
“These arrangements vary from farm to farm, depending on what items are readily available to the farmer,” Mr Dune said.
He also pointed out that market distortions contribute to inefficiencies in cash flow. The liberalised market structure is still relatively new, and farmers are grappling with the challenges it presents in maintaining viability.
Recently, farmer representatives petitioned the Tobacco Industry and Marketing Board (TIMB) to include labour costs in the minimum input package. This followed the realisation that labour accounts for approximately 15 percent of the total cost of production.
