Local bank workers have been offered a 521% wage hike year-on-year, in order to match high levels of inflation. 

The new salary level – which was backdated to January – was approved last week by the Banking National Employment Council (NEC), which covers the Banking Employers Association of Zimbabwe and the Zimbabwe Banks and Allied Workers Union.

This means that the lowest-paid employee will be getting $5,815.67 from $936.50 while the highest-paid will be receiving $8,296.93 up from $1,336.06. The salary review is applicable for non-managerial bank employees only. 

According to a statement authorised by the NEC: “This further agreement made and entered into in accordance with the provisions of the Labour Act Chapter 28:01 by and between the banking Employers Association of Zimbabwe herein after referred to as the employers of the part and the Zimbabwe Bankers and Allied Workers Union.

“Being parties to the National Employment Council for the banking undertaking to amend the principal collective bargaining agreements contained in Statutory Instrument 273 of 2000 and Statutory Instrument 150 of 2013. Accordingly, the present collective bargaining agreement shall be read together with these two preceding agreement.”

Last June, the Zimbabwean government brought back the Zimbabwe dollar, putting an end to a multi-currency system which had lasted a decade. 

“In accordance with clause 6 of SI 150 of 2013, the parties hereby agree that the year-on-year inflation from agreed sources is 521%. The parties have, therefore, agreed to affect a 521% increase on the minimum,” the statement further said.

Several banks are depending on non-interest income, sourced mainly from fees which include deposit and transaction fees, insufficient funds fees, annual fees, monthly account service charges, inactivity fees, and cheque and deposit slip fees. 

Zimbabwe is home to 19 lenders, which include 13 commercial banks, five building societies and one savings bank.