HARARE,— Civil servants in Zimbabwe are protesting against the government’s decision to deduct United States dollars from their salaries, claiming the move further impoverishes them by reducing their already meager earnings.
Government employees currently receive their salaries in a combination of United States dollars and the Zimbabwe Gold (ZiG) currency.
The workers have been urging the government to increase their salaries in USD terms, as the lowest-paid worker earns about USD 280 and around ZiG 1,500.
A circular dated May 28, 2024, issued by Public Service Commission (PSC) secretary Tsitsi Choruma, stated that deductions of the USD component, in line with Statutory Instrument (SI) 169/2021, would be backdated to January.
“Effective from January 1, 2024, Section 8(b) (4) provides that, ‘Any person in Zimbabwe who earns remuneration in a currency other than that of Zimbabwe shall be required to pay his/her contributions in foreign currency, and in cases where individuals earn remuneration in a combination of foreign currency and Zimbabwean dollars, he or she shall pay contributions in the same currency ratio,” read part of the circular.
However, government workers have described the move as “fraudulent.”
On Tuesday, the Progressive Teachers Union of Zimbabwe (PTUZ) wrote to the PSC challenging the decision to implement USD deductions.
In the letter, PTUZ secretary-general Raymond Majongwe expressed alarm at “such callous unilateralism intended to further impoverish civil servants.”
“The USD National Social Security Authority (NSSA) deductions must be commensurate with USD salary adjustments, and in any case, the proposed deductions and backdating are not a product of consultation with stakeholders such as unions representing civil servants,” Majongwe said in the letter.
“The USD NSSA deductions must be accompanied by meaningful USD salary adjustments which we feel are long overdue. The PSC and government must respect their workers and desist from approaches that are tantamount to a colonial master and servant relationship.”
Amalgamated Rural Teachers Union of Zimbabwe president Obert Masaraure said the government did not care about the plight of workers.
“The USD deduction is going to severely affect workers, the majority of whom earn depressed salaries,” he said.
“We continue to demand a USD 1,260 salary for teachers so that they have enough to cover the basics even after paying these subscriptions.”
Members of the security forces echoed similar sentiments, saying the government should tax their local currency component instead.
“The USD component, despite being paltry, has been helping us navigate the current chaotic economy. Taxing the little USD component will drive us further into poverty,” said a member of the security forces who wished to remain anonymous.
Zimbabwe Teachers Association spokesperson Goodwill Taderera accused the government of ambushing civil servants.
“What is critical is that they have to communicate before a deduction is made. We strongly advise that in future our employer should notify us first so that we can prepare before a deduction is made,” he said.
Zimbabwe Congress of Trade Unions vice-president Valentine Chikosi said Zimbabweans were struggling with poverty.
“Workers are faced with a precarious situation where their salaries are predominantly in ZiG, yet their expenses are predominantly in United States dollars,” Chikosi said.
“People need foreign currency to cover rent, transport, fuel, medical expenses, and school fees among other statutory obligations. Workers are left with no option but to source the much-needed USD from the black market, risking arrest.”
Chikosi added that the ZiG had so far failed to improve workers’ welfare but instead perpetuated poverty and unemployment.
He stressed the urgent need to address the “peanuts” salaries earned by most workers, adding that realigning salaries would contribute to economic growth through labor-driven growth.
Source: News Day
