Municipality Converts Worker's US$5k Salary Arrears to 2 ZiG
Chitungwiza Municipality has offered one of its former workers less than 8 cents (USD), despite initially acknowledging that he was owed $5,156.95 USD in salary arrears.
A letter confirming the municipality’s calculations has sparked outrage online, with critics questioning the fairness of the process that reduced thousands of dollars to pocket change.
Exchange Rate is Prime Driver of Price Increases
Human rights lawyer Obey Shava and the advocacy group Heal Zimbabwe Trust shared the letter on social media, sparking heated discussions about workers’ rights and the impact of currency changes on savings.
The letter, dated 5 November 2024 and signed by Chitungwiza Municipality Finance Director E. Machona, confirmed the former employee’s original entitlement.
“You were owed USD 5,156.95 when your contract with Council was terminated in August 2015,” the letter read, acknowledging the debt in clear terms.
However, the letter goes on to outline a series of currency conversions that drastically reduced the debt’s value.
“In February 2019 there was a transition from USD to RTGS at a rate of 1:1 which meant that USD 5,156.95 became RTGS 5,156.95.”
Municipality Converts Worker's US$5k Salary Arrears to 2 ZiG
According to the letter, this RTGS amount was then converted again on 5 April 2024 into Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), at an official rate of 1:2498.7274.
The result? A balance of just ZiG 2.06, which now equates to roughly 8 US cents.
Some are now calling for a review of Zimbabwe’s financial systems to prevent similar cases.
Human rights advocates have criticised the municipality’s actions as unfair, with lawyer Obey Shava and Heal Zimbabwe Trust pushing for greater accountability.
The two have argued that workers should not suffer the consequences of currency reforms, especially when they were promised a specific amount at the time of termination.
Chitungwiza Municipality has yet to release a public response, leaving citizens wondering if the worker will ever see his full dues paid.
