Mthuli Ncube, the Minister of Finance, Economic Development, and Investment Promotion, has announced that civil servants will soon see a salary increase aimed at alleviating the impact of the recent 40% devaluation of the ZiG by the Reserve Bank of Zimbabwe (RBZ).
In a series of interviews with journalists following President Emmerson Mnangagwa’s State of the Nation Address (SONA) to parliament on October 2, Mthuli Ncube shared insights into the government’s proactive measures. The devaluation, he explained, was implemented to align the official and parallel market values of the local currency, a necessary step for economic stability.
Recognizing the challenges posed by the currency decline, Ncube emphasized the government’s commitment to restoring the purchasing power of civil servants’ salaries. While he noted that the adjustments will not fully return salaries to their previous levels, he assured the public that measures are in place to provide meaningful support.
“Implementing a flexible exchange rate does have immediate effects on incomes and prices,” Ncube stated. “As a government, we will make adjustments to civil service salaries to ensure that their purchasing power is somewhat restored. There may be some pain and impact, but we are determined to compensate those affected as best as we can.”
This announcement comes after civil servants’ representatives recently declined a Cost of Living Adjustment (COLA) proposal during a National Joint Negotiating Council (NJNC) meeting. The Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) has opted to escalate discussions to higher authorities for further engagement, signaling a willingness to seek better solutions.
While the upcoming salary increase may not completely offset the effects of the currency devaluation, it represents a significant step toward supporting civil servants during a challenging economic period. The government seems committed to finding ways to enhance the financial well-being of its employees, ensuring that their needs are addressed moving forward.
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