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Economy / Zimbabwe

Halfway There

July 2009 | Risk Summary

The government has increased civil servant salaries from a monthly stipend of US$100 to a variable range falling between US$155 and US$200 per month, depending on the worker's rank. The rates fall well below the US$454 demanded by public sector unions, but the government stated the raise was the best it could do, given budgetary constraints. Earlier this year, the new unity government started paying government workers in foreign currency, after hyperinflation destroyed the value of the Zimbabwe dollar. The variable wage rate is intended to help motivate and retain civil servants.

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