By Chantelle Muzanenhamo
A newly publicised wage agreement has created a clear divide in how workers across sectors in Zimbabwe will be paid, with non-governmental organisation (NGO) employees guaranteed salaries in United States dollars while other sectors may receive wages in either US dollars or the ZiG equivalent.
The agreement, shared by the Permanent secretary in the Ministry of Information Publicity and Broadcasting Services Nick Mangwana on X on April 9, 2026, is anchored in Statutory Instrument 185 of 2020.
The regulation permits employers outside the NGO sector to convert wages into local currency using the prevailing bank rate.
Under the deal, all wages listed in the Collective Bargaining Agreement are denominated in US dollars.
However, NGOs stand apart, as they are required to continue paying salaries strictly in US dollars.
Other sectors including schools, hospitals, and welfare institutions have the option to pay in US dollars or convert to ZiG, depending on operational preferences and currency conditions.
Mangwana explained the arrangement, noting that the applicable exchange rate will be whichever is higher between the statutory provision and the prevailing bank rate at the time of payment.
The new wage structure outlines seven employer categories, with NGOs offering the highest base salaries. An entry-level Grade A1 worker in the NGO sector earns US$445.20 per month, while those at the top end, such as Grade C5 employees, receive up to US$1,397.23.
In contrast, other sectors show significantly lower base rates.
For example, a Grade A1 worker at a Mission Boarding school earns US$345.92, while a Grade C5 worker in Welfare B or Rural Early Childhood Development (ECD) centres earns US$444.77.
Despite differences in base pay structures, housing and transport allowances have been standardised in US dollars across multiple sectors.
Workers in NGOs, Independent A schools, Mission Boarding schools, and Welfare groups A, B, and C are entitled to a housing allowance of US$150 per month and a transport allowance of US$80.
The agreement applies broadly to institutions such as Trust Schools, Private ECDs, Mission Hospitals and Clinics, Religious Administrative Offices, Tertiary Institutions, Presbyteries, Convents, and Churches.
For employees in these sectors, the option to receive wages in ZiG introduces uncertainty.
The final value of their salaries will depend on the exchange rate on payday, potentially exposing workers to fluctuations in currency value.
The new arrangement highlights ongoing efforts to balance dollarisation pressures with local currency use, while also underscoring disparities in earnings stability across different sectors of the economy.