Zim employees want salaries linked to PDL

however, noted that it would be complicated to peg wages against all three elements at once due to the different methodologies required to accomplish such as feat.
Nonetheless, according to the survey, the majority of respondents (54,7 percent) indicated that there was need to factor in these three elements PDL, productivity and inflation.
Individually, the major factors received the following support: 28,5 percent indicated that salaries should be linked to productivity, 9,5 percent said the PDL and 6,1 percent said inflation should be the main determinant.
Interestingly, the remaining 1,1 percent (although somewhat negligible) indicated that they did not have any opinion whatsoever on what salaries should be linked to.
The issue of wages is particularly contentious in Zimbabwe emerging from dollarisation of the economy following a protracted period of hyperinflation, which has resulted in a liquidity crunch.
Economists contend that it is prudent for businesses — in the context of Zimbabwe’s challenging environment — to link the measurement of performance to the reward systems.
Others are, however, of the opinion that present wages are too low and should therefore be in line with the PDL, which is around US$600. IPC managing consultant Mr Memory Nguwi, however, believes that pegging salaries to the PDL is a dysfunctional model for Zimbabwean companies, which are currently suffering from constrained production capacities.
He believes that productivity-based remuneration and incentives that are taxed at half the normal tax on remuneration can greatly benefit employees from productivity gains.
In respect of the inflation factor, most observers believe that it is not necessarily reflective of the prices prevailing on the ground and therefore cannot be used to determine wages. This survey was conducted to ascertain what employees think about pay and performance issues in their different workplaces.