Zim GBC News | Business Correspondent
Harare – The Zimbabwe Congress of Trade Unions (ZCTU) has issued a stark warning that workers and pensioners are poised for worsening socio-economic conditions in 2026, citing depressed salaries, increased taxes, and the unresolved erosion of pensions from the 2009 hyperinflation period.
In a critique of the 2026 National Budget prepared by its research arm, the Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ), the union body argued that the working class will bear the brunt of current economic policies.
The report sharply criticised the budget for omitting any update on compensating for the 2009 pension value losses.
“While in past budgets the Minister of Finance… provided an update on the implementation of the recommendations of the Justice Smith Commission… the 2026 National Budget Statement omitted that aspect,” the paper stated.
The document also highlighted the severe erosion of wages. Using the recent University of Zimbabwe staff strike as an example, it noted a drastic decline in earnings:
“Pre-October 2018 junior lecturers earned on average US$2,250 per month… [now] an effective salary cut of 87%.”
Furthermore, the ZCTU criticised the slow implementation of agreed wage standards and new tax measures.
“The proposed increase in the VAT rate from 15% to 15.5%… will further worsen the plight of the workers,” the report said.
The labour body concluded that heightened job losses, a tight monetary policy, and an increasingly dollarized economy have turned the tables against Zimbabwe’s working people, forecasting a difficult year ahead.
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