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More Than 50% Of Zimbabwe's Employed Workforce Earns Less Than US$18 Per Month - Report

3 months agoWed, 17 Jan 2024 05:25:14 GMT
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More Than 50% Of Zimbabwe's Employed Workforce Earns Less Than US$18 Per Month - Report

More than 50% of Zimbabwe’s employed workforce earns less than US$18 per month, according to a market insights organisation called DOTZEDW. When calculated in the local currency (RTGS dollar), this salary amount corresponds to ZW$200,000 or lower, NewZimbabwe reported. This is nearly four times lower than the country’s Poverty Datum Line (PDL) for a family of six, which was ZWS840,000 as of December 2023.

Zimbabwe has been facing an economic crisis for over two decades, resulting in depleted savings, reduced salaries, high unemployment rates, and constant price increases for essential goods. Many skilled professionals in both the government and private sector have left the country in search of better-paying opportunities within and outside of Africa.

The majority of employment in Zimbabwe is in the informal sector, leaving those in the formal sector with limited representation in labour disputes regarding their low wages. Workers are often forced to accept whatever salary is offered to them out of fear that someone else will take their position if they are fired.

Before the introduction of a US$300 COVID-19 allowance, civil servants, who make up a significant portion of Zimbabwe’s employed workforce, earned less than US$75 per month. However, it is important to note that the US$300 allowance has been added to their taxable monthly wages.

The economic challenges in Zimbabwe have resulted in a high poverty rate, with Macrotrends recording it at 85% in 2019 and the United Nations estimating it to be 70.5% in 2020. The low wages earned by the majority of the workforce further contribute to the country’s poverty situation.

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The report comes as teachers in Zimbabwe are demanding a minimum wage of US$1,260 from the government because they feel that their current monthly pay of US$300 is insufficient. They have been going on strikes in the past to pressure the government into raising their salaries, but the increases have been infrequent and small.

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