We want interbank linked salaries – ZCTU

WORKERS’ representative body the, Zimbabwe Council of Trade Unions (ZCTU) wants the 2020 National Budget statement to link salaries to the interbank exchange rate.

ZCTU secretary general Japhet Moyo told ZTN that workers do not expect much from the 2020 National Budget set to be presented on Thursday by Finance Minister, Professor Mthuli Ncube as they were not consulted.

“It is unfortunate that our budget making process over the years has been very exclusive. Stakeholders have not been given the opportunity to engage effectively so that their views are also factored into the budget,” said Moyo.

“This why when the statement comes out it is more of a dump squib as it does not reflect the expectations of stakeholders and citizens in general.

“If the ministry has been listening to our call overtime, labour wants wages and salaries to be linked to the interbank exchange rate.”

Quizzed on ZCTU’s position on the tax free threshold Moyo said fixed figures will not work in an inflationary environment.

“Because of the volatile environment in the country, it is very difficult to put a cap at this moment. So we suggest that the threshold be reviewed periodically,” he said adding that salaries less than ZW$7600 must not be taxed.

“ZW$7600 is the poverty datum line if we use the interbank exchange rate. Government has not been agreeing with the APEX Council on this figure but that is what the least paid employee should be earning at the moment. That should also apply in the private sector,” said Moyo.

According to the Zimbabwe National Statistics Agency (Zimstat) the poverty datum line stood at ZW$2 192 in September.