NEC Mining Article
What is the National Employment Council (NEC)?
The national employment council is a body that has been mandated with the task of advancing social justice and democracy in the work place by ensuring adherence to fair labour practices and the setting of an agreed upon minimum wage between two parties. It is comprised of employer and employee organisations which deal with labour related issues in a specific industry or sector of business.
What NEC do I Belong to?
The NEC an individual and company belongs to is determined by the industry or sector in which you operate. There are different NEC’s for different sectors of industry such as NEC Mining, NEC Agriculture and NEC Commercial to name a few.
What is the Current NEC Mining Rate?
The current NEC rates vary widely from Commercial, Agricultural and Mining NECs as they each set their own rates which are subject to change at any given time. Under the current mining NEC, the minimum wage is set at a basis (for each grade) in a US$ amount.
– Foreign Currency earning Companies need to pay this minimum wage in both currencies- 65% of it is payable in USD and the remainder in ZWL at the prevailing auction rate on the date of payment.
– Non Foreign Currency earning companies pay the full US$ amount at the prevailing auction rate on the date of payment
– Their NEC dues are – 0.3% of the basic salary amount
What do I have to pay for Mining Unions?
Currently the mining union contribution for AMWUZ subs are – 3% of the basic salary amount
Additionally the Mining Insurance Pension Fund rates or MIPF is – 7.5% of the basic salary paid by both the employer and employee.
What is the NEC Mining Minimum Wage?
Attached is a link to the NEC Mining’s latest gazette and minimum wages for each of the different grades under the NEC Mining : https://miningzimbabwe.com/wp-content/uploads/2023/03/WAGE-RATES-2023-1.pdf
Where and how do I pay my NEC Dues?
NEC payments are required to be made on or by the 10th of the succeeding month of payment to your employees, eg NEC dues for salaries paid in the month of June are due on or by the 10th of July. NEC payments are to be made to the council which you have registered with to the corresponding bank details they have provided you with as shown in the NEC Mining gazzete above. The dues owed are outlined above as 0.3% of the individuals basic salary and will be paid to the above mentioned bank details.