3.3 Zimbabwe Manual Labor Costs

Most workers in Zimbabwe are on fixed term contracts. According to labour law, fixed term contracts expire at the end of the term specified. Employment may be terminated by mutual agreement. The law states that if a contract of employment does not specify the date of termination, other than a contract for casual work, seasonal work or for the performance of some specific service, it is deemed to be an indefinite contract. This provision is, however, conditional for casual workers. In accordance with section 20.1 of the Labour Act 2005, the Minister has the authority to specify the minimum wage and benefits for any class of employees in any undertaking or industry. Minimum wages are usually issued for industries not covered by the employment councils.

In accordance with section 12A of the Labour Act 2005, wages should be paid at regular intervals on working days at or near the workplace. Remuneration payable in money should not be paid to an employee by way of promissory notes, vouchers, coupons, liquor, etc. Remuneration in kind shall not substitute entirely for remuneration in money. Also, the aggregate amount of permissible deductions that may be made from the remuneration of any employee in any pay interval shall not exceed 25% of the employee’s gross remuneration for that interval. In accordance with section 17.3 C&J of the Labour Act, the Minister for Labour may issue regulations regarding overtime, shift work and night work. Overtime may be regulated under Collective Bargaining Agreement (section 74.3.E of Labour Act). No such regulation could be located. Overtime rates are determined by the National Employment Councils through a Collective Bargaining Agreement. The minimum overtime rate is 150% of the normal wage rate when workers have to work beyond normal working hours, as determined by the National Employment Councils. The standards working hours are 8.5 hours a day and 44 hours a week.

Zimbabwe's economic crises prior to 2009 led to many of the country's most skilled and well educated citizens to emigrate, leading to widespread labour shortages for managerial and technical jobs. At the same time, the decade long severe contraction of the economy caused formal sector employment to drop significantly.

For more information on manual labor costs in Zimbabwe, please see the following attachment: Additional Zimbabwe Manual Labor Information

Labour Rate(s) Overview

Type of labour Local Currency/USD Year/month

Daily general worker (unskilled casual worker) 5 2017/March

Daily general worker (semi-skilled) 12.5 2017/March

Skilled labour 25 2017/March

Minimum Wage

In accordance with section 20.1 of the Labour Act 2005, the Minister has the authority to specify the minimum wage and benefits for any class of employees in any undertaking or industry. Minimum wages are usually issued for industries not covered by the employment councils.

Regular Pay

In accordance with section 12A of the Labour Act, 2005, wages should be paid at regular intervals on working days at or near the workplace. Remuneration payable in money should not be paid to an employee by way of promissory notes, vouchers, coupons, liquor etc. Remuneration in kind shall not substitute entirely for remuneration in money. Also, the aggregate amount of permissible deductions that may be made from the remuneration of any employee in any pay interval shall not exceed 25% of the employee’s gross remuneration for that interval.

Minimum Wages in Zimbabwe for the year 2015

SECTOR MINIMUM ALLOWANCES TOTAL EFFECTIVE COMMENTS WAGE EARNINGS DATE Housing Transport

AIR TRANSPORT 579 * * 01/04/14

BATTERY 225.48 * * 01/04/14 MANUFACTURING

CATERING 200 45 30 275 01/01/14

CEMENT, LIME AND 328.65 * * 01/07/14 Allowances are negotiated at company level. ALLIED INDUSTRY

CERAMIC 200 * * 01/03/14

MINING 238.41 1/1/14 Mines only pay shift allowance, overtime and similar. Mines may provide accommodation, electricity and water at a nominal charge. Most mines provide free or heavily subsidized medical facilities, usually extending to immediate family members.

INSURANCE 546 * * 01/01/14

Page 1 TRANSPORT 256.52 38.85 Provided 06/07/13

PLASTICS 196 * * 01/04/14

MANUFACTURING 198 * * 01/10/14

PRINTING 235 78 44 01/01/14

LUMBER 222,60 * * 01/01/13

SUGAR MILLING 170 * * 01/04/14

TOURISM INDUSTRY 248.65 * * 01/03/14

Tobacco Industry; 293.74 * * 01/01/14 Basic wage of an employee is inclusive of allowances, i. Miscellaneous sector e. housing and transport.

Tobacco Industry; 347.62 * * 01/01/14 Cigarette and Tobacco Manufacturing Industry

As the UN is not a member of The National Employment Council the Manual Labour costs have been withheld. The type of contracts that UN enter with service providers puts the labour obligation on the service provider. UN does not deal directly with the labourers.

For more information on manual labor costs in Zimbabwe, please see the following attachment: Additional Zimbabwe Manual Labor Information

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