Zimbabwe Hikes Civil Servants’ Pay 40% to Ease Costs Pressure

Zimbabwe will hike state workers’ salaries by 40% from this month to help them cope with rising living costs.

Teachers, which make up the bulk of the 330,000 government employees will also be awarded a 10% risk allowance, Information Minister Monica Mutsvangwa said in an emailed statement. This comes as most schools reopened Monday after being shut since March 30 due to a coronavirus lockdown.

Zimbabwe’s largest teachers union’s members refused to return to work in September because they were not being paid enough. Surging inflation and changes to the nation’s currency regime have eroded the value of teachers’ salaries to between $30 and $35 a month, the Zimbabwe Teachers Association said in an email at the time.

The body wanted members to be paid $520 plus sector-specific allowances. They will now earn Z$18,237 ($223). The lowest paid civil servant will receive a salary of Z$14,528.

Annual inflation in Zimbabwe is currently at 471%. The country is facing shortages of foreign currency and half the population of almost 15 million people is estimated to be in need of food aid.

©2020 Bloomberg L.P.

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