Govt to pay USD allowances, hikes salaries 50%
Harare, (New Ziana) The government on Wednesday offered civil servants an interim pay allowance of US$75, and increased their salaries across the board by 50 percent to cushion them from the effects of Covid-19 and general economic downturn.
Announcing the package, the Ministry of Finance and Economic Development said the interim pay relief will run for the next three months until a mutually agreed salary review.
Under the arrangement, the US$75 will be paid across the board to civil servants with immediate effect and will not be taxed.
“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,” the finance ministry said in a statement.
“This interim arrangement is for a period of three months, starting from June 2020.”
The 50 percent increase also applies to civil service pensions. Pensioners will also get US$30 for the next three months.
To get the USD allowances, civil servants and pensioners will be required to open foreign currency accounts, the finance ministry said.
A huge jump in the cost of living has seen most of the government workers earning salaries below the poverty datum line which is set at over ZW$7 400.
“Government reiterates its commitment to payment of a living wage to its employees, whilst ensuring sustainability of the budget,” the finance ministry said.