Zimbabwe government has offered its restless civil servants Covid-19 Allowances to be paid in United States Dollars and a 50% Salary upwards review. The Press statement released today reads;
“Pursuant to Government’s commitment to continuously review and improve the remuneration framework for Civil Servants, taking into account the transitory economic challenges being currently experienced in the country, which have been exacerbated by the Covid-19 pandemic, Government makes the following announcement:-
- With immediate effect, all Civil Servants’ Salaries will be adjusted upwards by 50%. This increase also applies to all Government Pensions.
- In addition, all Civil Servants will be paid a flat, non-taxable covid-19 Allowances of US$75.00 per month.
- Government Pensioners will be paid a flat, non-taxable, Covid-19 Allowances of US$30.00 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.
- This interim arrangement is for a period o 3 months, starting from June 2020.
- All Civil Servants and Pensioners are therefore advised to immediately open USD denominated Nestro Bank Accounts with their banks in order to smoothern 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 frame for mitigating against the downside macroeconomic risks of the wage proposal made to the Government on the budget and the economy are being carefully worked out.
- Government reiterates its commitment to payment of a living wage to its employees, whilst ensuring sustainability of the budget.
- Government is also widening the remuneration framework for Civil Servants to introduce significant non-monetary benefits and these will be announced in due course.
Ministry of Finance and Economic Development.