By Almot Maqolo.
HARARE, Zimbabwe (News of The South) – Zimbabwe government has with immediate effect increased all civil servants salaries in order to cushion them from the economic shocks which have eroded their incomes.
The increase also applies to all government pensions.
In a statement, the treasury said it will continuously review and improve the remuneration framework for civil servants, takinng into account the transitory economic challenges being experienced in the country owing to the Covid-19 pandemic.
Under the payment of civil service Covid-19 allowances and salary review, all civil servants will be paid a flat, non-taxable, Covid-19 Allowance of USD75.00 per month.
Government Pensioners will be paid a flat, non-taxable, Covid-19 Allowance of USD30.00 per month.
“Government has taken due regard of the fact that addressing the wage challenges faced across the Civil Service, any salary reviews will need to be done within a holistic framework in order to ensure that such a review does not impose a negative shock in the market,” reads the statement.
This interim arrangement is for the period of 3 months, starting this month.
“All civil servants and pensioners are therefore advised to immediately open USD denominated nostro bank accounts with their banks in order to smoothen the process of payment. The Reserve Bank of Zimbabwe is urgently addressing the domestic payments infrastructure in light of the increased need for transactability.
“Government would therefore wish to advise members of the civil service that the above interim adjustments have been put in place whilst a comprehensive impact assessment and a framework for mitigating against the downside macro-economic risks of the wage proposals made to the government on the budget and the economy are being carefully worked out.”
The treasury reiterates its commitment to payment for a living wage to its employees whilst ensuring sustainability of the budget.
“Government is also widening the remuneration framework for civil servants to intoroduce significant non-monetary benefits and these will be announced in due course,” it said.
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