Monday 6th November 2023 PRESS STATEMENT BY THE MINISTER OF LABOUR AND SOCIAL SECURITY RENDA MWIKA TAMBATAMBA ON THE REVISION AND FORMULATION OF THE MINIMUM WAGES

Minister of Labour and Social Security Brenda Mwika Tambatamba, a United Party for National Development (UPND) Kasempa Member of Parliament (MP), in the North-Western Province

REPUBLIC OF ZAMBIA MINISTRY OF LABOUR AND SOCIAL SECURITY

PRESS STATEMENT BY THE MINISTER OF LABOUR AND SOCIAL SECURITY RENDA MWIKA TAMBATAMBA ON THE REVISION AND FORMULATION OF THE MINIMUM WAGES –

Monday 6th NOVEMBER 2023

1. I WISH TO UPDATE THE NATION THAT ON 30TH OCTOBER 2023,
CABINET APPROVED THE ISSUANCE OF STATUTORY INSTRUMENTS ON THE MINIMUM WAGES AND CONDITIONS OF
EMPLOYMENT. THE APPROVED MINIMUM WAGES AND CONDITIONS OF SERVICE WILL COVER DOMESTIC WORKERS, SHOP WORKERS, AND ALL OTHER WORKERS WHO DO NOT FALL IN THE TWO CATEGORIES MENTIONED.
2. THE APPROVED MINIMUM WAGES AND CONDITIONS OF
SERVICE WERE ARRIVED AT AFTER AN EXTENSIVE
CONSULTATIONS WITH THE TRIPARTITE CONSULTATIVE LABOUR COUNCIL AND OTHER KEY STAKEHOLDERS. YOU MAY WISH TO NOTE THAT THE TRIPARTITE CONSULTATIVE LABOUR
COUNCIL (TCLC) IS ESTABLISHED UNDER SECTION 79 OF THE INDUSTRIAL AND LABOUR RELATIONS ACT, CAP 269 OF THE
LAWS OF ZAMBIA TO ADVISE THE GOVERNMENT ON ALL ISSUES RELATING TO LABOUR MATTERS, MANPOWER DEVELOPMENT AND UTILISATION AND ANY OTHER MATTER REFERRED TO THE COUNCIL BY THE GOVERNMENT.
3. THE TCLC DRAWS ITS MEMBERSHIP FROM THE GOVERNMENT, EMPLOYERS’ REPRESENTATIVES AND THE TRADE UNIONS.
4. THIS ADJUSTMENT -ro THE MINIMUM WAGES AND CONDITIONS
OF SERVICE ARISES FROM A TCLC RESOLUTION AT ITS
MEETING HELD ON 23RD APRIL, 2021. THE RECOMMENDATION
OF THE TCLC TO REVISE THE MINIMUM WAGE WAS PREMISED ON THE FACT THAT THE LAST REVISION OF THE MINIMUM WAGE WAS DONE IN 2018.
5. ARISING FROM THE RECOMMENDATIONS OF THE TCLC IN 2021 THE LABOUR ADVISORY COMMITTEE (LAC) UNDERTOOK AN INQUIRY INTO THE WAGES AND CONDITIONS OF SERVICE IN THE COUNTRY. THE LAC IS AN AD HOC COMMITTEE OF THE TCLC ESTABLISHED UNDER SECTION 99 OF THE EMPLOYMENT CODE ACT, NO. 3 OF 2019.
6. THE PURPOSE OF THE INQUIRY WAS TO MAKE RECOMMENDATIONS ON THE MINIMUM WAGES AND CONDITIONS OF EMPLOYMENT TO THE MINISTER OF LABOUR AND SOCIAL SECURITY.
7. THE LAC IS COMPOSED OF THE FOLLOWING ORGANISATIONS:
MINISTRY OF LABOUR AND SOCIAL SECURITY
MINISTRY OF COMMERCE TRADE AND INDUSTRY i i i . ZAMBIA CONGRESS OF TRADE UNION
ZAMBIA FEDERATION OF EMPLOYERS
v. ZAMBIA INSTITUTE FOR POLICY ANALYSIS AND
RESEARCH
ZAMBIA STATISTICS AGENCY vii. AN EXPERT IN THE SETTING OF MINIMUM WAGES AND CONDITIONS OF EMPLOYEMENT.
8. FURTHER, TO ENSURE EVIDENCE-BASED REVISION AND FORMULATION OF MINIMUM WAGES, THE LAC ENGAGED THE ZAMBIA INSTITUTE FOR POLICY AND RESEARCH (ZIPAR) TO UNDERTAKE A STUDY OF NUMEROUS VARIABLES THAT IMPACT
THE MINIMUM WAGES, INCLUDING INFLATION, UNEMPLOYMENT
RATE AND CAPACITY OF EMPLOYERS TO PAY. BASED ON THE ZIPAR RESEARCH FINDINGS, THE LAC RECOMMENDED AN UPWARD ADJUSTMENT TO THE MINIMUM WAGES FOR
DOMESTIC WORKERS, SHOP WORKERS AND EMPLOYEES COVERED UNDER THE GENERAL ORDER. THEREFORE, THE
MINIMUM WAGES AND CONDITIONS OF SERVICE THAT I WILL
PRESCRIBE IN THE STATUTORY INSTRUMENTS ARE AN OUTCOME OF THE CONSULTATIVE PROCESS AND BASED ON
EVIDENCE.
9. THE APPROVED MINIMUM WAGES ARE AS FOLLOWS:

APPROVED MINIMUM WAGES
CATEGORY Approve d basic salary (ZMW) Appro ved housin g all of which is
ZMW Appro ved transp ort all
W)
W) Approved
Gross
(ZMW)
DOMESTIC WORKERS 200.00 1,300.00

SHOP WORKERS
Grade I ( e. g. Handy person; office orderly) 1,487.00 446.10 200.00 180.oo 2,313.10
Grade Il( e. g. Driver , Sales assistant ; or Packer ) 1,801.98 540.59 200.00 180.00 2,722.57
Grade Ill( e. g. Assistant bicycle assembler ; Assistant dispatch clerk 2,121.35 636.40 200.00 180.oo 3,137.75
Grade IV-( e. g. Bicycle assembler ; Checkout operator; Typist ) 2,296.89 689.07 200.00 180.00 3,365.96
Grade V ( e. g. Dispatch clerk; Sales person 2,680.92 804.28 200.00 180.00 3,865.20
Grade VI( e. g. Audiovisual equipment repairer ; Machine operator ) 2,861.10 858.33 200.00 180.00 4,099.43
Grade VIl( e. g. Credit controller ; Supervisor 3,142.26 942.68 200.00 180.00 4,464.94
Grade VIll( e. g. Qualified book keeper 3,275.58 982.67 200.00 180.00 4,638.25

GENERAL ORDER
Category I( e. g. a General worker , not elsewhere s ecified; a Cleaner 1,487 200.00 180.00 2,313.10
Category Il( e. g. a person engaged as a Watchperson or a Guard) 1,487 446.10 200.00 180.00 2,313.10
Category Ill( e. g. Assistant Sales person; Packer or Book Binder 1,801.98 540.59 200.00 180.00 2,722.57
Category IV( e. g. a Driver , pump attendant 2,119.23 635.76 200.00 180.00 3,135.00
Category V( e. g a Typist ; or Receptionist) 2,296.89 689.06 200.00 180.00 3,365.96
Category VI( e.g a Sales person 2,680.92 804.27 200.00 180.00 3,865.20
Category VIl( e.g Qualified Clerk 2,861.36 858.41 200.00 180.00 4,099.77
CATEGORY APPROVED GROSS MINIMUM WAGES
DOMESTIC WORKERS Kl ,300.OO
SHOP WORKERS
GRADE I (E.G. HANDY PERSON; OFFICE ORDERLY) K2,313.10
GRADE Il (E.G. DRIVER, SALES ASSISTANT; OR PACKER K2,722.57
GRADE Ill (E.G. ASSISTANT BICYCLE ASSEMBLER; ASSISTANT DISPATCH CLERK) K3,137.75
GRADE IV (E.G. BICYCLE ASSEMBLER; CHECKOUT PERSON OR; TYPIST) K3,365.96
GRADE V E.G. DISPATCH CLERK; SALESPERSON K3,865.20
GRADE (E.G. AUDIOVISUAL EQUIPMENT REPAIRER; MACHINE OPERATOR K4,099.43
GRADE (E.G. CREDIT CONTROLLER;
SUPERVISOR)
GRADE (E.G. QUALIFIED BOOK KEEPER)
GENERAL ORDERS
CATEGORY I (E.G. A GENERAL WORKER, NOT ELSEWHERE SPECIFIED; A CLEANER K2,313.10
CATEGORY Il (E.G. A PERSON ENGAGED AS A WATCH PERSON OR A GUARD) K2,313.10
CATEGORY Ill (E.G. ASSISTANT SALES PERSON; PARKER OR BOOK BINDER K2,722.57
CATEGORY IV (E.G. A DRIVER, PUMP ATTENDANT) K3,135.OO
CATEGORY V E. GA TYPIST; OR RECEPTIONIST K3,365.96
CATEGORY E.G. A SALESPERSON K3,865.20
CATEGORY (E.G. QUALIFIED CLERK) K4,099.77
1 0. FURTHER, THE NATION MAY ALSO WISH TO NOTE THAT THE PRESCRIBED MINIMUM WAGES AND CONDITIONS OF EMPLOYMENT, STATUTORY INSTRUMENTS PROVIDE FOR THE RATES TO BE PAID PER HOUR, DAY, WEEKLY OR MONTHLY TO
THE WORKERS.
1 1 . ADDITIONALLY, IT IS IMPORTANT TO NOTE THAT THE
MINIMUM WAGES AND CONDITIONS OF SERVICE ARE ONLY APPLICABLE TO NON-UNIONISED AND VULNERABLE WORKERS ACROSS ALL SECTORS.
1 2. THAT NOTWITHSTANDING, THERE ARE A NUMBER OF INCENTIVES TO EMPLOYERS THAT HAVE BEEN DEVISED BY GOVERNMENT. THESE INCLUDE:
THE GOVERNMENT REDUCED THE PENALTY RATE WHICH
IS APPLICABLE UNDER THE NATIONAL PENSION SCHEME AUTHORITY (NAPSA) FROM TWENTY PERCENT (20%) TO
TEN PERCENT (10%).
ii. CABINET HAS APPROVED THE ISSUANCE OF THE STATUTORY INSTRUMENT ON NAPSA PENALTY WAIVER.
THIS WILL AMONG OTHER THINGS-
, REDUCE THE DEBT BURDEN FOR BUSINESSES AND
ALLOW EMPLOYERS TO CLEAR THEIR OUTSTANDING DUES WITH NAPSA WITH THE INCENTIVE THAT PART OF THE DEBT WILL BE
WRITTEN OFF;
, PROVIDE TO BUSINESSES THAT WERE HARD HIT DURING THE COVID-19 PANDEMIC.
ENCOURAGE SMALL-SCALE BUSINESSES
INCLUDING EMPLOYERS FROM THE INFORMAL
ECONOMY (SUCH AS EMPLOYERS OF DOMESTIC WORKERS) TO REGISTER THEIR EMPLOYEES WITH
THE NAPSA WITHOUT WORRYING ABOUT HIGH PENALTIES FOR NON-PAYMENT OF PAST
CONTRIBUTIONS,
, ENHANCE COMPLIANCE LEVELS THEREBY
STIMULATING THE GROWTH OF BUSINESSES AS FREED-UP RESOURCES WILL BE USED FOR
REINVESTMENT; AND
, THE INCREASED COMPLIANCE LEVELS, WILL INVARIABLY RESULT INTO INCREASED SOCIAL
SECURITY COVERAGE IN THE COUNTRY.
iii. THE MINISTRY OF LABOUR AND SOCIAL SECURITY WILL BE CONDUCTING TRAININGS, AT NO COST FOR THE
BUSINESSES DOMICILED WITHIN LUSAKA, IN ORDER TO BUILD THE PRODUCTIVITY CAPACITIES OF ENTERPRISES.
FOR THE BUSINESSES OUTSIDE LUSAKA, THEY WILL ONLY MEET LOGISTICAL COSTS FOR STAFF FROM THE MINISTRY OF LABOUR AND SOCIAL SECURITY.
1 3. FINALLY, THE APPROVED MINIMUM WAGES AND
CONDITIONS OF SERVICE WILL TAKE EFFECT ON 1 ST JANUARY 2024, WHICH IS SEVEN WEEKS FROM TODAY. THE EFFECTIVE
DATE OF IMPLEMENTATION HAS TAKEN INTO CONSIDERATION
THE TIME REQUIRED FOR EMPLOYERS TO PLAN FOR THE IMPLEMENTATION OF THE NEW MINIMUM WAGES AND
CONDITIONS OF SERVICE.
HON. RENDA MWIKA TAMBATAMBA, MP
MINISTER OF LABOUR AND SOCIAL SECURITY