Zimbabwean Banks Agreed To Backdate 50% US Dollar Salary Payments

The Zimbabwean banking sector has agreed to pay backdated 50% US dollar component salary payments from April 1, 2023, in an agreement that is expected to boost morale in the sector. The employers had previously refused to pay the US dollar component of salaries, despite making huge profits in US dollars over the years. However, after negotiations with the Zimbabwe Banks and Allied Workers Union (ZIBAWU), the employers agreed to the payment. 

The Collective Bargaining Agreement (CBA), entered into by the Banking Employers Association of Zimbabwe (BEAZ) and ZIBAWU, concluded negotiations for the period April to June 2023 and agreed to increase basic salaries by 45.9% on March ZWL. The agreement will run for three months until June 30, 2023, and is subject to renegotiation or amendment during this period. The agreement includes payment in Zimbabwe dollars indexed at the prevailing inter-bank rate on the date of payment, with some workers earning a foreign currency portion of their salaries. Reads in part the CBA:

The parties have concluded negotiations for the period April to June 2023 and agreed to increase basic salaries by 45,9% on March ZWL which are inclusive of housing and transport allowance.

Further parties agreed that 50% of the Salary balance be paid in ZWL indexed at the prevailing inter-bank rate on the date of payment.

As per the agreement, workers in the least grade A2 will receive ZW$611,275 and a minimum of US$280.43. Drivers will now earn ZW$693,186 plus a foreign currency allowance of US$294.46.

Middle-grade banking sector workers in grades C, B, and A will earn approximately ZW$800,000 and a foreign currency portion of US$370.

Senior grades from DPI to DPV will earn between ZW$909,978 to ZW$1.1 million with US dollar allowances ranging from US$417 to US$507.44.

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