Banks, workers agree on US dollar salary component

Zim Now Writer

Bank workers and their employers have agreed on a wage structure that would see salaries split into local currency and US dollars at a ratio of 60:40 percent respectively, according to a resolution made at a February 24 meeting between the parties.

The parties to the meeting included the National Employment Council, the Banking Employers Association of Zimbabwe, and the Zimbabwe Banks and Allied Workers Union.

According to the NEC circular, 40 percent of the minimum salary for grades N/C (lowest grade) to DPV (highest) will be paid as hard currency in USD or alternatively in Zimbabwe dollars indexed at the prevailing inter-bank rate on the date of payment.

They also agreed to review the industry minimum basic salary which is inclusive of housing allowance from ZWL$295 000 to ZWL$418 951.17. The 60 percent ZWL component of this will be ZWL$251 370.00 while the 40 percent component, which will be paid in US dollars, will be US$203.66.

Grade DP V wages will be increased from ZWL$468 141.13 to ZWL$758 079.25 with the 60 percent ZWL component amounting to ZWL$454 847.55. The US dollar component, 40 percent, will be US$368.52.

The parties agreed that the agreement will be applied in retrospect, implying that the new salaries will be with effect from January 1, 2023.

“Further, the parties have agreed to apply an 8 percent inter-band differential for grades N/C up to DPV and a 5 percent differential on all sub-band grades.

“Notwithstanding the dates of registration and publication hereof, this agreement shall be deemed to have come into effect on the 1st January 2023 and shall run for a period of three months up to 31st March 2023,” reads the circular.

ZIBAWU assistant secretary-general Shepard Ngandu said the agreement will not preclude them from engaging employers for further wage review.

“We agreed to negotiate quarterly, and our aim is to get full USD salaries from the current 40 percent threshold,” he said.