HomeBusiness DigestRBZ workers get 300% salary hike

RBZ workers get 300% salary hike

Shakeman Mugari

THE Reserve Bank of Zimbabwe (RBZ) has awarded its workers a 300% salary increment in a move set to drastically inflate its expenditure on wages.

Arial, Helvetica, sans-serif”>The salaries will be back-dated to January this year and will be paid at the end of this month.

The move is a direct contradiction of the central bank’s recent call on companies to exercise restraint in awarding salary adjustments.

The RBZ’s human resources department has already informed staff of the recent hike. There are about 600 workers currently on the RBZ payroll.

The secretary general of the Zimbabwe Bankers Allied Workers Union (Zibawu) Collin Gwiyo confirmed that the central bank had awarded a 300% salary increase to its employees.

“Yes I can confirm that they were given a 300% increase. But I must confess that I don’t have information on how far it has been back-dated,” said Gwiyo, who is also the acting secretary general of the Zimbabwe Congress of Trade Unions (ZCTU). Zibawu was part of the negotiations that culminated in the salary increase.

Reserve Bank governor Gideon Gono is on record as having discouraged other companies and institutions from awarding large salary increments in an effort to counter inflation.

“We therefore urge for restraint on the part of employers as a quid-pro-quo for restraints in wage and salary demands we are calling for from workers,” Gono said in the monetary policy first quarter review. “Furthermore, management at various places must exercise restraint in their own salary demands and awards so as to lead by example.”

The RBZ move could trigger wide-ranging salary reviews in the troubled banking sector.

The RBZ’s 300% increase comes barely a month after government awarded a 50% salary hike to civil servants, raising fears that the country could overrun its $3 trillion budget wage bill.

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