Republican President Edgar Lungu has with immediate effect lifted the wage freeze.
The Head of State has now instructed Labour Minister Fackson Shamenda to immediately pave way for extensive negotiations with the Labour movement over the matter.
President Lungu, in power for the last 90 days has seen his popularity ratings and public approval sour to greater heights with the way in which he has handled the Presidency.
The wage freeze had become one of the most controversial policy pronouncements by the PF since they swept to power in 2011, often drawing resentment from the public.
Political observers say he is widely expected to secure a second term of office when Zambia goes to the polls in less than 17 months.