Employees across Zimbabwe’s commercial sector particularly in Real Estate, Distribution, and Clearing are set to benefit from revised monthly wages, with the least-paid workers now earning US$305. This development stems from a newly ratified Collective Bargaining Agreement (CBA) reached between sectoral unions and employers, marking a notable step toward improving income standards amid persistent economic challenges.

According to Given Chibaya, General Secretary of the National Employment Council (NEC) for Commercial Sectors, the latest wage negotiations have been finalized and will remain effective from July 1, 2025, to December 31, 2025. The agreement, jointly signed by the Commercial Workers Union of Zimbabwe and the National Employers Association of Zimbabwe (NEAZ), sets a structured pay scale designed to maintain parity and ensure fair compensation within the sub-sectors.

Under the updated framework, Grade 1(a) employees typically entry-level workers — will now receive US$305 per month. Mid-tier positions classified under Grades 5 and 6 are allocated salaries ranging between US$357 and US$366, a similar range to that of Grades 11 and 12. Furthermore, employees in Grade 1(b) defined as those with at least two years of continuous service with the same employer as of July 1, 2025 are also entitled to incremental benefits reflective of their tenure.

A significant feature of the new agreement includes provisions related to the Cost of Living Adjustment (COLA). As outlined by the NEC, any wage increases provided since January 1, 2025, may count toward the new COLA requirements. However, if an employee’s prior raise does not meet the stipulated adjustment level, the employer must provide an additional increment equivalent to the shortfall, ensuring every worker benefits equitably under the CBA terms.

Additionally, a revised levy contribution system will take effect over the same period. Employees earning below US$533 or its equivalent in Zimbabwean dollars (ZWG) at the prevailing Reserve Bank of Zimbabwe (RBZ) rate will now contribute 1% of their income to the levy fund, with employers matching that contribution. Workers earning above the US$533 threshold will be capped at a US$5.53 maximum levy, again with the employer contributing an equal amount.

This wage update follows the government’s broader initiative to address inflationary pressures and sustain formal employment in Zimbabwe’s commercial and service sectors. As living costs continue to rise, the latest CBA represents a crucial, though modest, boost for thousands of low-to-mid-income earners navigating an uncertain economic climate.