The Impact of the Wage Freeze on Business/Civil Service in Zambia

Abstract

The two year wage freeze imposed by government on public service workers will Impact them negatively while the business community will suffer reduced levels of income. The concept of a wage freeze for public sector workers makes for good politics; however, the Economic effects of doing so can be far more damaging. While the current economic situation is in obvious disrepair, we must remember that the current economic situation was caused by factors much more profound than the cost of wages and benefits for public sector workers. The Introduction of the wage freeze by the government has been received with fixed feelings by the people of Zambia. While the wage freeze will result in increased funds to the treasury that can be channeled to the basic social services and investment in public infrastructure, the public and the civil service, the business and the economy will be affected negatively in various ways.