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Workers in the retail and wholesale sector have appealed to the Government to exempt those whose earnings are below the prescribed minimum wage from being taxed.
Addressing journalists in Harare, Progressive Retail Wholesale Workers Union of Zimbabwe secretary-general Phillip Mafundu implored the Government to review the tax bracket saying the current system is leaving them poorer. Said Mafundu (<a href="https://www.newsday.co.zw/local-news/article/200022115/retail-workers-bemoan-taxation-low-salaries">via NewsDay</a>):
<blockquote>
We appeal to the Finance Minister (Mthuli Ncube) to revisit the issue of taxing to say how can someone who is getting US$265, which is not even a living wage, be taxed? It is our view again to say the tax bracket should be changed.
They say US$100 is tax-free, and then what can we do with US$100? Our proposal is very simple, we are saying if the government wants to tax its citizens the tax should start from a living wage where I get something that is above the basic.
If we calculate our basics and they come to US$300-400 that should be taxed, but if I am left with US$100 and you tax that automatically I cannot even pay my rent.
So that is the concern, the minimum wage should be raised and the tax bracket should also be raised. The minimum wage should not even be taxed.
</blockquote>
Mafundu said tuckshops and unregistered traders were benefiting from the current situation by not paying their workers a living wage and demanded that they comply.
He also urged the National Employment Council (NEC) of the commercial sector to implement the new section 56 of the Labour Act [Chapter 28:10] and allow other unions with membership to negotiate for their members saying workers in the sector.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Retail Workers Want To Be Exempted From Paying Income Tax

The National Employment Council For the Commercial Sectors of Zimbabwe (NECCSZ) has recommended a sector-wide wage increase with effect from 1 January 2023.
A letter dated 9 December 2022 and addressed to all employers and employees in the commercial sectors by the National Commercial Employers Association of Zimbabwe reads in part:
<blockquote>
Notice is hereby given that the NCEAZ has recommended an all-sector minimum wage to be pegged at 150.00 United States Dollars or ZWL-RTGS equivalent payable using the Reserve Bank prevailing auction rate for the first Tuesday of the month.
In light of the above, all employers falling under the purview of the Commercial Sectors are encouraged to adopt the following wage structure:
Grade 1 
(a) US$150
(b) US$153
Grade 2 – US$156
Grade 3 – US$159
Grade 4 – US$162
Grade 5 – US$166
Grade 6 – US$169
Grade 7 – US$172
Grade 8 – US$176
Grade 9 – US$179
Grade 10 – US$183
Grade 11 – US$187
Grade 12 – US$190
</blockquote>

Commercial Sector Employees Set For Wage Hike

Opposition Citizens Coalition for Change (CCC) national spokesperson, Fadzayi Mahere, has said the government’s <a href="https://zero.pindula.co.zw/govt-sets-us150-as-minimum-payable-wage-across-sectors/">proposed US$150 minimum wage across all sectors</a> is insufficient.
The government said the US$150 can be paid either in Zimbabwe dollars or foreign currency at the prevailing bank rate.
Speaking during a post-cabinet briefing, Information, Publicity and Broadcasting Services Minister Senator Monica Mutsvangwa said:
<blockquote>
Pertaining to salaries and wages, here are some of the recommendations:- that a guide be provided to all bargaining platforms across all sectors to strive towards pegging the minimum wage at US$150.00 payable either in ZWL$ or at the prevailing bank rate.
</blockquote>
In response to the proposition, Mahere, a former Law lecturer at the University of Zimbabwe, said:
<blockquote>
$150? That’s inadequate. No wonder the @WorldBank found that half of Zimbabweans live in extreme poverty. This is not enough. It can’t even cover one child’s school fees let alone food, rent, electricity &amp; basic living expenses. We need new leaders.
</blockquote>
Other observers said the government must set a minimum wage which corresponds with conditions in the country.
Some said in a country where “90 per cent of people are unemployed”, a high minimum wage chases away investment.
Government workers have since 2019 when the <a href="https://news.pindula.co.zw/2019/06/24/breaking-rbz-si-142-bans-use-of-all-foreign-currencies-with-effect-from-24-june-2019/">Zimbabwe dollar was reintroduced</a>, been at loggerheads with the employer demanding restoration of their pre-October 2018 salaries which were around US$540.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

"US$150 Doesn't Cover Fees For 1 Child" - Mahere Responds To Govt's Proposed Minimum Wage

The government has gazetted Statutory Instrument 81 of 2020 which sets the national minimum wage at $2 549.74 for all employees except those in the agricultural and domestic sectors.
Labour Minister <a href="https://www.pindula.co.zw/Paul_Mavima" rel="noopener noreferrer" target="_blank">Paul Mavima</a> said the directive comes into effect immediately, with those who are unable to pay the stipulated fees granted permission to apply for exemption with the relevant National Employment Councils.
Statutory Instrument 81 of 2020 reads in part:
<blockquote>The minimum wage of $2 549 applies to all workers other than domestic and agricultural employees, for which alternative provision will be made.
The exemption shall take immediate effect as granted by the NEC unless and until the Minister on grounds of public policy objects to it, in which event the minimum wage must be paid from the date of publication of this notice.</blockquote>
The newly gazetted minimum wage of $2 500 translates to US$100 at the fixed exchange rate of 1:25.
<h4>More: <a href="https://www.newzimbabwe.com/government-sets-private-sector-minimum-wage-at-2-500/" rel="noopener noreferrer" target="_blank">NewZimbabwe.com</a></h4>

Private Sector Minimum Wage Set At $2 500

In a speech read on his behalf by Industry and Commerce Deputy Minister Chiratidzo Mabuwa at a competitiveness conference last week, Minister of Policy Coordination and Promotion of Socio-Economic Ventures in the President’s Office <a href="http://www.pindula.co.zw/Simon_Khaya_Moyo">Simon Khaya Moyo</a> said Zimbabwe should address high wage levels, which are in some cases are 10 times more than those prevailing in the region, as this is contributing to the erosion of competitiveness for local products.
Khaya Moyo said,
<blockquote>One erudite economist made a comparative analysis of the regional wages. He indicated that Zimbabwe offers minimum wages of $275 to $300, Malawi offers $30, Mozambique $120, Botswana $93 and Zambia $100. It is obvious that using this criterion of minimum wages, investors will not invest in Zimbabwe.</blockquote>
More: <a href="http://www.chronicle.co.zw/zim-should-address-high-wage-levels/">Chronicle</a>

Khaya Moyo says Zimbabwe's $275 to $300 minimum wage is too high to attract investors

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