Private sector struggles to match Govt salaries

Zvamaida Murwira

Senior Reporter

GOVERNMENT has expressed satisfaction with civil service salaries, noting that the lowest-paid worker now earns above the Poverty Datum Line — a feat that has reportedly unsettled the private sector, which struggles to match public sector remuneration.

Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa recently said while salary negotiations would be conducted through the appropriate forums, the Government took pride in being one of the country’s best employers.

The remarks came in response to Matabeleland North Senator Teresa Kabondo, who asked when civil servants’ salaries would be reviewed, given the time elapsed since the last adjustment.

“Indeed, it has been quite some time since there was a salary review. These salary reviews usually come as cost-of-living adjustments, but we have experienced some stability over the last year and a half,” said Deputy Minister Mnangagwa.

“Just to give some context around the architecture of the lowest-paid civil servant, you will find that it is US$320 and a ZiG equivalent of about US$40 or US$60. I will have to check those numbers. This puts all our civil servants from the lowest paid — the cleaner — to the highest paid, above the poverty datum line. This is something we have strived over and over to achieve.”

The Poverty Datum Line measures the minimum income required for an individual or household to meet basic needs, including food, housing, healthcare, education and other essential services. According to the Zimbabwe National Statistics Agency (ZIMSTAT), the Total Consumption Poverty Line for one person stood at ZiG1 260.52 per month as of March 2025.

Deputy Minister Mnangagwa noted that salary negotiations would involve all stakeholders to avoid disrupting the broader job market, adding that Government’s competitive pay had become a point of contention with private employers.

“Discussions around salary review are done in a forum that has the employers, the Government and the employees. To avoid distortion within the job market, we give all parties a chance to add their voice,” he said.

“I will say that the private sector has actually been at the forefront of complaining that the Government is moving a bit too fast in increasing salaries. It might come as a surprise, but Government does pay better than the private sector at this current moment. So, while these discussions are ongoing between the employer and the employees, we will strive to ensure that our civil servants, particularly the lowest paid, are always above the poverty datum line.”

During the 2026 national budget debate in December last year, Finance Minister Professor Mthuli Ncube indicated that Treasury planned to implement another round of salary adjustments soon.

Legislators had called for increased funding to various Government programmes, including the Basic Education Assistance Module and social services, suggesting that resources could be drawn from Unallocated Reserves — contingency funds set aside during the budget process for unspecified purposes.

However, Prof Ncube cautioned against overestimating the available reserves, saying multiple obligations, including civil service salary adjustments, would consume the funds rapidly.

“I would really like to persuade our colleagues. We have a limited purse . . . we seem to have a large Unallocated Reserve. I can assure you it is not large at all. It will go so fast and so quickly,” said Prof Ncube.

“One issue is the budget for salary adjustments for civil servants in the first quarter. It is going to happen, and it is based on the job evaluation exercise. It will eat away quite a lot of that Unallocated Reserve. It will not go far.”

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