As a business owner who’s looking to hire employees or do business in Zimbabwe, it’s imperative that you understand the country’s labor laws and minimum wage. 

While the Government has set the statutory minimum wage at $150 or its equivalent in ZWD (Zimbabwean Dollar), there is a large disparity between this figure and the actual market rate across different sectors and locations.  

In this guide, we’ll cover the basics you need to know about the Zimbabwean minimum wage and how to position yourself accordingly to attract the best talent.

Here’s What to Know About the Minimum Wage in Zimbabwe

For a long time, Zimbabwe did not have a legal “minimum wage.” Instead, the salaries and wages paid to employees were set by the industry-specific National Employment Councils (NECs) or through collective bargaining agreements. And since the labor system lacked a centralized wage structure, each sector negotiated its own minimum wage based on stakeholder agreement, the cost of living, and inflation.

However, this changed with the introduction of new laws in 2024. According to Statutory Instrument 186 of 2024, the minimum wage for employers in Zimbabwe is $150 (or equivalent in Zimbabwean gold). This applies to workers across all industries and serves as the legal wage floor, regardless of industry-specific agreements. Additionally, employers can pay in either the local currency, foreign currency, or a combination of both (for foreign companies). 

Want to dive deeper? Check out our full guide on the average salary in Zimbabwe.

Payroll in Zimbabwe

Payroll tax in Zimbabwe is the percentage deducted from employees’ salaries and paid to the Government to fund public programs. As an employer, there are several payroll levy costs you need to consider before hiring workers in Zimbabwe. Let’s look through the compulsory ones: 

Social Security

Payroll tax in Zimbabwe is referred to as “NSSA (National Social Security Authority) contributions.” Here, employers and employees are mandated to pay this tax to the Government to fund public programs in the country. The total amount paid is 10%, which is split equally between the employer and their employees. This means you’ll pay 4.5% on top of your employee’s gross salary, while your employee shoulders the remaining 4.5%. 

In addition to the social security levy, both employees and employers are mandated to pay a 3% AIDS levy on individual and corporate income. This fund is managed by the National AIDS Council (NAC) and is used to finance the National AIDS response.  

Levy Employers Employees
Social Security 4.5% 4.5%
AIDS Levy 3% 3%
Total 7.5% 7.5%

There are other statutory contributions and dues, but these vary by sector.

Difference Between Minimum Wage and Market Realities in Zimbabwe

Although Zimbabwe now has a national minimum wage, many industries still operate under sector-specific agreements negotiated by the National Employment Councils (NECs). For instance, as of the time of writing this piece, the minimum wage set by NEC for agriculture is ZWG 683 (USD 26) for grade A1 employees and ZWG 867 (USD 33) for grade B1.  

Despite these structures, enforcement still varies, especially for employers in low-paying sectors. As a result, the government allows employers to exceed the minimum wage if they can do so. This will cushion employees against inflation and also help you attract top talent from the pool. 

Overall, we advise that you study the market rates in your sector and location to remain competitive and compliant. You can also use an Employer of Record in Zimbabwe to ensure that:

  • Salaries meet statutory and market expectations. 
  • You provide employees with a livable income that reflects the high costs of living in the country. 

Cost of living in Zimbabwe and How it Affects Employee Payroll

As we mentioned above, the minimum wage in Zimbabwe is capped at $150 or the ZWG equivalent. However, this amount varies across sectors, regions, and employee skill levels. Employers looking to do business in Zimbabwe need to consider these prevailing factors before setting salary structures. 

For instance, Grade C2, which is the highest level in the agriculture industry, will earn a minimum wage of $52, compared to $26 for A1 (entry-level) workers. 

Costs also vary by location. Harare, the country’s capital, for instance, houses over 2 million people and has the highest cost of living ($992). If you plan to hire talent from this location or establish your business here, expect to pay more compared to other places, such as Chinhoyi and Marondera, which have a lower cost of living.  

Building a Competitive Wage Structure in Zimbabwe

The average monthly salary in Zimbabwe is $253. However, the actual earnings vary. Some employees earn more (due to their location or sector), while others earn less. To attract quality talent and remain compliant with Zimbabwean Labor Laws, it’s best to offer competitive compensation packages. One way to do this is to provide robust employee benefits beyond the standard salary or wage. 

Some of the standard optional benefits employees offer in Zimbabwe are:

  • Health Insurance: While contributions to the National Social Security Authority (NSSA) provide basic health coverage, employers can also offer premium options for employees and their dependents, depending on their capacity.
  • Pension Funds: In addition to the mandatory NSSA pension contributions, employers can also decide to invest in private pension schemes for their employees. This is even more important for formal sectors with skilled employees who seek long-term financial stability. It’s also a great way to retain employees in your organization for the long term. 
  • Training support: Employers in formal sectors, such as banking, teaching, or engineering, can provide funds for workshops, courses, or certifications to help employees grow professionally.  This helps to build employee internal capacity and also increases work output.
  • Lunch Allowance: Employers can also provide meals on-site or lunch stipends to reduce employees’ daily expenses, especially in cities like Harare, where the cost of living is high.
  • Performance Bonus: Employers can also implement performance-based bonus initiatives to incentivize and motivate employees. This is also a great way to show that you recognize and appreciate their efforts at work.

Future of the Minimum Wage in Zimbabwe

Zimbabwe’s economy has undergone several shifts over the years, but experts predict an optimistic future. In 2026 and beyond, expect to pay more than the minimum wage in Zimbabwe, which is expected to be higher than the current amount because of inflation and the high cost of living. Let’s look at some of the activities that’ll spearhead these changes: 

Sector-wide Reforms

Industry-specific National Employment Councils are negotiating higher wage costs to match the rising living costs. For example, in the mining industry, the minimum wage is currently $124.05 and is expected to increase to $266.14 by July.  

Additionally, advocacy groups and unions across sectors are becoming more vocal. The Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ), for example, is calling for re-negotiations over low salaries for teachers. Other sectors, such as healthcare, transport, and mining, are also expected to push for revised wage agreements as inflation continues to erode workers’ purchasing power.

Salary Payments in Foreign Currency

The Zimbabwean government allows employers to pay their workers in US dollars or a combination of US dollars and the local currency. This multi-currency system aims to combat high inflation in the country, and most of the time, workers prefer USD payments because they have a better value than the local currency. It’s also a great way to gain a competitive advantage and attract better talent to your company. 

Even Coverage Across Sectors

While Zimbabwe has a statutory minimum wage of USD 150, this rate doesn’t yet apply to all categories of workers, especially those in agriculture, mining, and other informal sectors. Labour unions and advocacy groups are pushing for broader inclusion and even higher salaries to increase purchasing power. 

Annual Adjustments

Despite the government recently launching the new minimum wage, expect sector-specific adjustments annually or biennially based on inflation, living costs, and Collective Bargaining Agreements. 

For example, in 2025, the mining NEC agreed to a 5% increase, which is: 

  • 4% from January to June 
  • 1% from July and above   

To stay compliant and competitive, review your salary structure from time to time based on real-time cost-of-living data and NEC benchmarks. 

Hire Employees in Zimbabwe with an EOR Like Remote People

Wages in Zimbabwe can be tricky. While the government has set a national minimum wage of $150, most industries follow their rates, and the cost of living can also influence the salary structure, depending on where your employees are based.

If you’re planning to hire workers in Zimbabwe, look beyond the legal minimum. What are workers in your industry earning? Are salaries being paid in USD, Zimbabwean dollars or both? And what kind of benefits do local employers offer to stay competitive?

To make things easier, work with an EOR in Zimbabwe like Remote People that understands the labor landscape and can help you stay compliant with Zimbabwe’s labor laws.