Revised Minimum Wages for Agricultural Workers in Zimbabwe Take Effect June 1, 2025

Strategic Insights -

The National Employment Council (NEC) for the agricultural industry in Zimbabwe has introduced a revised minimum wage structure for workers in the sector, effective from June 1, 2025. The increase aims to address the current cost of living, with the lowest grade (A1) rising from US$75 to US$80 per month, and the highest grade (C2) increasing from US$149 to US$159. The revised schedule also includes increments for fuel, night, and accommodation allowances.

Key Takeaways:

  • The revised minimum wage structure for agricultural workers in Zimbabwe will be effective from June 1, 2025.
  • The lowest grade (A1) will receive an increase from US$75 to US$80 per month, while the highest grade (C2) will rise from US$149 to US$159.
  • Other grades received increments ranging between US$5 and US$10.
  • Workers must be paid 65 percent of their earnings in United States dollars, with the remaining balance in local currency.
  • Fuel and night allowances were each increased by US$1, now standing at US$12 and US$8 respectively.
  • The ZCFU president, Dr Shadreck Makombe, confirmed the development, stating that farmers may apply for an exemption if unable to meet the new wage requirements.
  • Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa, described the revised remuneration structure as a fair wage schedule, considering the current cost of living.
  • Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, warned that the wage increase could reduce the profitability of agricultural enterprises.
  • Tobacco Farmers Union Trust (TFUT) president, Mr Edward Dune, pointed out that compensation for workers is becoming an increasing burden for farmers, with some resorting to paying labour costs in kind due to lack of funds.

Statistics:

  • The lowest grade (A1) will receive an increase of US$5 per month, from US$75 to US$80.
  • The highest grade (C2) will rise by US$10, from US$149 to US$159.
  • Workers will be paid 65 percent of their earnings in United States dollars, with the remaining balance in local currency.
  • Fuel and night allowances each increased by US$1, now standing at US$12 and US$8 respectively.
  • Labour accounts for approximately 15 percent of the total cost of production.
  • Farmer representatives petitioned the Tobacco Industry and Marketing Board (TIMB) to include labour costs in the minimum input package.

Sources:

  • "National Employment Council (NEC) for the agricultural industry in Zimbabwe"
  • "Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe"
  • "Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa"
  • "Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe"
  • "Tobacco Farmers Union Trust (TFUT) president, Mr Edward Dune"
  • "The liberalised market structure is still relatively new, and farmers are grappling with the challenges it presents in maintaining viability"