Zimbabwe has lifted the minimum wage for workers in unclassified sectors by 80 percent. Officials credit the move to economic gains since launching the gold-backed ZiG currency.
Monthly pay for these workers jumps from $150 to $270 under the new rules. Domestic workers will earn between $90 and $117 monthly, based on their specific duties and qualifications.
Labour officials said the raise helps workers manage living costs without crushing businesses. "This adjustment seeks to strike a balance between improving workers' welfare and maintaining the ability of businesses to remain operational," they noted.
Unlike past wage hikes that collapsed under hyperinflation, this system ties salaries to the US dollar. Companies paying in ZiG must use the official interbank rate on payday.
Domestic workers now have a graded pay structure. Gardeners and yard staff earn $90 monthly minimum.
Cooks and housekeepers get at least $99 per month. Caregivers for children, elderly people, and persons with disabilities receive no less than $108.
Workers with formal training—such as Red Cross certification—earn a minimum of $117. This creates an incentive for domestic workers to pursue professional qualifications.
Labour groups have praised the tiered approach as progress for the sector. The framework formally recognises different skill levels for the first time.
Three parties hammered out the deal: government officials, the Confederation of Zimbabwe Industries, and the Zimbabwe Congress of Trade Unions. They met through the Wages and Salaries Advisory Council.
Council members told reporters the agreement shows shared commitment to fair labour practices. "We believe the agreement reflects a shared commitment by government, employers, and workers to improve compliance and promote fair labour practices," they said.
Small and medium-sized businesses worry about the impact. Some have flagged concerns that higher wage bills could squeeze their already-tight margins.
Trade unions support the increase as essential worker protection. Economists remain divided on whether companies can sustain such raises long-term.
Mining, agriculture, and manufacturing have all performed better recently. Stronger foreign currency reserves and market stability underpin the government's confidence, according to officials.
Debate over the wage policy will dominate talks at the Tripartite Negotiating Forum Global Summit in September. The event takes place in Victoria Falls.
