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Workers

Zimbabwe Agricultural Sector Workers Receive Minimum Wage Increase

Strategic Insights

— 2 min read

The National Employment Council (NEC) for the agricultural industry in Zimbabwe has implemented a minimum wage schedule increase for agricultural sector workers. The new wages came into effect on June 1, 2025, and apply to the 10 different worker grades in the grade schedules from A1 to C2. The lowest grade, A1, saw a minimum salary increase from US$75 to US$80 per month, while the highest grade, C2, rose from US$149 to US$159 per month.

The wage increase has been met with mixed reactions from the agricultural sector. The Zimbabwe Commercial Farmers union (ZCFU) president, Dr Shadreck Makombe, has agreed that the increase was negotiated between workers' representatives and employers, while the Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, expressed concerns that the increase will cut into the profitability of agriculture production. The Tobacco Farmers union Trust (TFUT) president, Mr Edward Dune, stated that the wages are becoming a burden to cash-strapped farmers, who are resorting to paying labor costs in kind due to lack of funds.

Key Takeaways:

  • The National Employment Council (NEC) for the agricultural industry in Zimbabwe has implemented a minimum wage schedule increase for agricultural sector workers.
  • The new wages came into effect on June 1, 2025, and apply to the 10 different worker grades in the grade schedules from A1 to C2.
  • The lowest grade, A1, saw a minimum salary increase from US$75 to US$80 per month, while the highest grade, C2, rose from US$149 to US$159 per month.
  • The wage increase was negotiated between workers' representatives and employers, as stated by the Zimbabwe Commercial Farmers union (ZCFU) president, Dr Shadreck Makombe.
  • The Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, expressed concerns that the increase will cut into the profitability of agriculture production.
  • The Tobacco Farmers union Trust (TFUT) president, Mr Edward Dune, stated that the wages are becoming a burden to cash-strapped farmers, who are resorting to paying labor costs in kind due to lack of funds.
  • The liberalized market structure has contributed to market distortions, leading to gross inefficiencies in cash flows in the farming community.
  • The farming community recognizes the importance of labor costs, which contribute 15 percent to the cost of production, leading to a petition to the Tobacco Industry and Marketing Board (TIMB) to include labor in the minimum input package.

Statistics:

  • The lowest grade, A1, saw a minimum salary increase from US$75 to US$80 per month, a 6.67% increase.
  • The highest grade, C2, rose from US$149 to US$159 per month, a 6.71% increase.
  • The accommodation allowance remains unchanged at US$38 or its local currency equivalent.
  • Fuel and light allowances were increased by US$1 each to US$12 and US$8 respectively.
  • The employer is responsible for paying the cost of transport and travel and subsistence allowance.
  • The employee will receive five percent of their basic monthly wage as an allowance for firearm and dog handling.

Sources:

  • NEC Agriculture's notice to all general agriculture subsector employers and employees in the agricultural industry in Zimbabwe.
  • Zimbabwe Commercial Farmers union (ZCFU) president, Dr Shadreck Makombe.
  • Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe.
  • Tobacco Farmers union Trust (TFUT) president, Mr Edward Dune.
  • Zimbabwe National Farmers union (ZNFU) president, Mrs Monica Chinamasa.
  • Tobacco Industry and Marketing Board (TIMB).
  • Zimbabwe Tobacco Growers Association (ZTGA).

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