Private Sector ‘Cannot’ Pay Forex Salaries

The Employers Confederation of Zimbabwe (EMCOZ) has commended the government for its decision to pay allowances for its workers in foreign currency but said not all private sector players are able to pay employees USD salaries.

EMCOZ president Israel Murefu said the organisation will not force employers to pay their workers in foreign currency as some of them are generating revenue in local currency. Murefu said:

Each organisation will do what is feasible within its own operations. For example, if an entity is earning their revenue in foreign currency, we have no problem if they also pay their employees in forex, but if they are generating revenue in local currency it will be a problem because there is no market where you can buy forex to pay employees.

We have some players who were already paying in forex before Government made its announcement. This is not anything new, but we are saying employers will not be forced to pay their workers in forex. They will have to pay in the currency they are comfortable with or in the currency in which they generate revenue.

On Wednesday the government announced a flat non-taxable COVID-19 allowance of US$75 for civil servants and increased their salaries by 50 per cent while pensioners who retired from the civil service will also get a flat non-taxable COVID-19 allowance of US$30 per month.

However, Public Service Commission (PSC) Secretary Jonathan Wutawunashe, said the foreign currency allowances will not be disbursed in notes form but civil servants will use their Nostro bank account electronic cards to swipe for their purchased items at points of sale.

More: Chronicle

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