Some Zimbabwe Open University (ZOU) employees are now getting negative salaries as their paltry earnings are gobbled up by deductions such as medical aid and funeral policies.
Negative net pay occurs when an employee owes more in deductions than earned wages.
It happens when an employee’s total gross earnings for a period are less than the total of all taxes and voluntary or involuntary deductions.
A memorandum dated 19 April 2023 and addressed to staff members, ZOU Deputy Registrar, Human Resources, reads:
Kindly be advised that it has come to the attention of the University that there are some staff members who are now getting negative salaries because their deductions are more than their earnings.
According to Labour Act, the aggregate permissible deductions should not exceed twenty-five percent (25%) of one’s earnings.
As a way to rectify the issue of negative salaries, the Human Resources Unit shall with immediate effect cease the deductions of those who are affected, in the following order;
1 Tuition fees exemptions
2 Other Voluntary personal deductions
3 Funeral policies
4 Medical aid for dependents.
Please note that the above-mentioned deductions shall be terminated without consulting the affected staff members whenever the salaries are in the negative.
To avoid negative salaries, members are encouraged to always monitor their voluntary deductions.