‘Honouring Labour’: Govt Touts Duty-Free Cars, Housing as ZCTU Rejects US$150 National Wage

By Tendai Chisiri




HARARE — Zimbabwe marked Workers’ Day 2026 on Friday  with sharply contrasting messages from government and labour unions, as civil servants weigh a new grade-based salary structure against demands for pre-2018 US dollar wages.

In his May Day message, President Emmerson Mnangagwa implored employers to reward workers fairly, insisting economic growth must “cascade to the workers” and improve their quality of life. He tied the commemorations to the national mantra _“Nyika Inovakwa Nevene Vayo”_, calling workers central to national transformation.

The Public Service Commission themed 2026 commemorations _“Honouring the Dignity of Labour – Defending Workers’ Rights, Fair Wages and Social Protection for All”_, hailing civil servants as the “wheels that locomotise public services”. Parliament also saluted the “tireless efforts” of the workforce.

But labour unions used the day to highlight a widening gap between pay and the cost of living.

New Pay Structure vs Union Demands
Effective April 1, government implemented a job evaluation-based framework. All civil servants now receive US$320 in hard currency, with the balance in ZiG. Entry-level Grade A3 workers earn US$370–US$375, middle grades US$376–US$435, and senior levels up to US$897. Teachers get US$479–US$485 plus an US$80 allowance.

The Zimbabwe Congress of Trade Unions rejected the adjustments, citing the US$150 national minimum wage as “choking” negotiations. Unions maintain a baseline demand of US$540 for the lowest-paid worker — the pre-October 2018 benchmark. Some advocacy groups are pushing for US$1,000 minimum and US$2,000 for teachers.

ZCTU commemorations in Mutare focused on unemployment, poverty, and inequality. Progressive Teachers Union president Dr Takavafira Zhou called for urgent intervention on low pay and excessive taxation under the theme _“Respect and Remunerate Teachers Well”_.

Non-Monetary Cushions

Government is leaning on non-wage benefits to ease pressure. The Civil Service Vehicle Rebate Scheme has been fully restored to 2022 levels, allowing duty-free imports for staff with 10 years’ service, or 2 years for health workers. Rebate thresholds range from US$3,500 for Grade B–C to US$20,000 for Deputy Directors.

On housing, 26,000 stands have been identified — 20,000 in Harare and 6,000 in Bulawayo — with support via the Civil Servants Housing Loan Scheme and the NSSA-backed Rangemore Presidential Housing Scheme. Government also cited recapitalised PSMAS medical aid, subsidised bus transport, and the Government Employees’ Mutual Savings Fund.

Criticism Persists
Retail sector unions warned many workers are “staying at home to cry and mourn” due to economic hardships. Labour Economists and Afrikan Democrats president Linda Masarira accused government of “negotiating in bad faith” over a promised April salary increase that did not materialise.

Zimbabwe Lawyers for Human Rights urged wage structures to reflect the real cost of living and respect constitutional labour rights. Unions also flagged concern over ZiG payments when fuel and passports remain priced in US dollars.

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