A salary is a predetermined amount of money from an employer to an individual, that can be set in an employment agreement. It’s compared to piece-rate wages, whereby every job, hour or whatever unit is being paid out at once, and not on a yearly basis. The salary should be calculated by comparing the total number of hours worked over a month to the agreed salary. If one agrees to have a yearly salary, then one would also be obliged to accept a percentage of that annual salary as commission. This percentage of the salary is referred to as an annual bonus.
In order to determine the amount of salary to be paid out, the following considerations need to be taken into consideration: what the job is like, how much experience the person has had, what skills the person has, the salary ranges allowed and any other special rules that may have been put in place at the time of the individual applying for the job. There are various factors that can be used to calculate these values. The most common one is the annual average earnings of the employees during their whole working life. If someone is employed in a low-paying job for many years and yet has succeeded in rising to a position where higher salaries are awarded, then that person’s chances of getting a similar increase in remuneration are high.
The salary structure in Zimbabwe is determined by the government, following a process that sets the limits of salaries that can be paid out. Thus, when reviewing an individual’s credentials, it is important to take this into account. For instance, if a person has been working in the same job for a very long time, the chance of them receiving a big raise is relatively low. Likewise, if someone was demoted and received a lower salary when he applied for another position, their chances of receiving that raise are even slimmer.
The review of an individual’s credentials is also based on whether they are eligible for a wage increase that takes into account their performance. If their qualifications are below standard, then their salary cannot be increased. Thus, even if a person has years of service and is still being paid the same wage, it is unlikely that the pay will be enhanced.
In addition to reviewing an individual’s credentials, the review also considers whether the salaries being paid are aligned with what the employers are paying. In most instances, companies strive to offer the lowest priced wage possible. Therefore, unless the employer can prove that they offer better wages than their competition, they often resort to paying low wages to employees. However, by closely examining the wages of different companies and the types of employees being paid, the Zimbabwe government ensures that no employee receives a salary above their ability.
Lastly, salary employees in Zimbabwe are also offered a relatively stable income. This is because the country is one of the least affected by external factors that may affect production. For example, insecurity in neighboring countries often has a negative impact on local businessmen. Consequently, businesses need to provide more stable pay structures for their employees. In addition to offering competitive wages, most Zimbabwe employers offer fringe benefits, such as medical benefits and insurance coverage. However, if a salary employee requires these benefits, it is incumbent upon the employer to ensure that these benefits are added to the employee’s regular salary.