In Zimbabwe, executive compensation in the public sector and parastatals is now a matter of public concern. This is due to the growing wage bill, ordinary workers� poverty-level wages and poor service delivery by state-controlled enterprises. As a result, the Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ) conducted a survey of the country�s salary structures in both these sectors. LEDRIZ also assessed the compression/ decompression of the earnings structures to provide evidence-based policy proposals. Achieving an equitable and competitive earnings structure is a prerequisite for economic recovery and turnaround. The salary structure must be sustainable, internally equitable and externally competitive. Furthermore, the public sector wage bill should be reduced by defining a wage ceiling, compressing salaries, monetizing allowances, imposing a hiring freeze and reducing/controlling employment levels. However, it is important that all reductions be carried out gradually to ensure fiscal sustainability. 1