HomeBusinessPegging salaries on PDL suicidal: expert

Pegging salaries on PDL suicidal: expert

The poverty datum line (PDL) is set at US$500 a month, an amount way above what most government workers get.

IPC, in its report titled: “Are Zimbabwean employees underpaid? An Analysis of Salary Trends” said: “its total madness to want a PDL linked minimum wage for a country slowly recovering from years of economic decline.”

“The major area of conflict between labour and business has been the issue of salaries.

“Labour wants better remuneration while employers are saying they can’t afford the salaries requested.

“The bottom line is while labour would want employers to peg salaries to the PDL that model is suicidal.

“If you pay salaries beyond your means it’s a sure way to bankruptcy. No normal business is able to pay more than what they are producing” reads part of the report.

The consultancy firm added that the assumption being made by labour is that employers are making a lot of money, hence the call for improves wages.
IPC also said labour and business should desist from setting minimum wages.

The report said until there is credible productivity data the NEC negotiations should just be stopped as they are not helping any of the protagonists.

According to IPL, the only viable remuneration option available for Zimbabwe is for the social partners to put productivity at the centre of our remuneration policies in both the civil service and in the private sector.

Recent Posts

Stories you will enjoy

Recommended reading