Explainer: Zimbabwe’s US$150 Per Month Minimum Wage and Why It Excludes Domestic and Farm Workers

Explainer: Zimbabwe’s US$150 Per Month Minimum Wage and Why It Excludes Domestic and Farm Workers

US$150 Minimum Wage in Zimbabwe: Domestic & Farm Workers Left Out

Zimbabwe’s government recently set a minimum wage of US$150 per month, as outlined in Statutory Instrument 186 of 2024. However, this new wage does not apply to maids, domestic workers, or agriculture workers. Here’s everything you need to know about the decision, the exclusions, and the reactions it has sparked.

What Does the New Minimum Wage Say?

The Labour Relations (Specification of Minimum Wages) (Amendment) Notice, 2024 (No. 17) establishes a wage floor for workers whose salaries are not determined by specific agreements or regulations. The key provision reads:

“For all employees whose remuneration is not fixed by or in terms of any agreement, determination, or regulations made under the Act…US$150.00.”

This means any worker under this category should earn at least US$150 per month. Employers are also required to pay any outstanding wage differences within two months of the regulation’s effective date.

However, a crucial exemption is included in the explanatory note:

“Employers in agriculture and employers for domestic workers are exempted from paying minimum wages.”

This clause excludes thousands of domestic and farm workers, who typically earn less than their counterparts in other sectors, from receiving the newly established minimum wage.

Five SA-Based Zimbabwean Farmers
[Image: Africa News]

Why Are Domestic and Farm Workers Excluded?

The exclusion has historical roots. Some commentators argue that it reflects lingering colonial-era labour practices. For example, Zimpricecheck, a local consumer watchdog, highlighted on Twitter:

“ These are the vestiges our colonial past. The law was meant to protect white employees and employers at the same time. Instead of saying white employers are exempted they just cleverly put in a clause that would give whites a minimum wage while denying it to blacks. And here we are 40+ years later carrying on..”

The government has not fully clarified the reasoning behind these exclusions, but historically, such workers have often been excluded from formal wage regulations due to the informal nature of their employment.

What Are People Saying About the Decision?

The exemption has triggered widespread debate. Farai Makomo, a Twitter user, pointed out the impact of the exclusion:

“Read the last sentence! Minimum wage doesn’t apply to domestic workers & farm workers.”

Many see the exemption as continuing outdated policies that fail to protect the most vulnerable workers. Social media reactions suggest a growing frustration with policies that do not offer equal protection across all sectors.

What Is the Government’s Position?

Finance Minister Mthuli Ncube has stated that wage adjustments and recent tax reforms aim to ease workers’ financial burdens. Speaking in Parliament, he explained:

“The first US$100 income earned by employees is exempt from tax. Any subsequent income is taxed at rates ranging from 20% to 40%… The local currency Tax-Free Threshold will be reviewed to ZiG2 800 per month.”

These changes are meant to increase workers’ disposable income, but critics argue they do little to help those excluded from the minimum wage adjustment.

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The post Explainer: Zimbabwe’s US$150 Per Month Minimum Wage and Why It Excludes Domestic and Farm Workers appeared first on iHarare News.