USD Salaries Payment Practices Survey 2023

23/05/2023 9:05 AM

Based on the survey findings, it is clear that a significant majority of Zimbabwean companies (76%) peg their salaries in USD. This suggests that there is a preference for using USD as a currency for salary payments, which could be due to the perceived stability of the USD compared to the ZWL.


However, it is worth noting that almost half of the companies that peg their salaries in USD (46%) do not have contractual obligations to do so. This could indicate some flexibility regarding currency choice for salary payments, and companies may be open to exploring other options.


Regarding how companies pay USD salaries, the survey found that 56% of companies pay them in ZWL using the Interbank rate. This suggests that companies are taking advantage of the official exchange rate to control payroll costs. However, it is also interesting to note that a significant proportion of companies (27%) use the Alternative Market rate instead. This could indicate that some companies are willing to pay a premium to attract and retain critical staff.


The survey also found that 56% of participating companies pay salaries using USD and ZWL. This suggests that companies desire flexibility in terms of currency choice, possibly due to fluctuations in exchange rates or other economic factors.


These findings suggest that Zimbabwean companies are navigating a complex economic environment regarding salary payments. Executives and board members may want to consider exploring different currency options for salary payments and keeping an eye on exchange rate fluctuations to ensure they are making informed decisions about their payment strategies.


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