23 November 2018

Zimbabwe: Salary Cuts for Executive, Senior Govt Officials

Photo: New Zimbabwe
Teachers took to the streets in Harare last week demanding that their salaries be paid in United States dollars due to the continued plunge in value of the Bond Note and RTGS currencies.

Government has with effect from January 2019 reduced by five percent, basic salaries for all senior positions from Principal Directors, Permanent Secretaries and their equivalents up to Deputy Ministers, Ministers and the Presidium.

Presenting his 2019 national budget statement yesterday, Finance and Economic Development Minister Professor Mthuli Ncube said the reduction in salaries of top government workers is in line with the drive to reduce public spending on employment costs.

"Mr Speaker Sir, it is critical that we reduce public spending on employment costs. As a first step, Government has decided that effective 1 January 2019, a 5% cut on basic salary, be effected for all senior positions from Principal Directors, Permanent Secretaries and their equivalents up to Deputy Ministers, Ministers and the Presidium.

"This is also extended to basic salaries of those in designated posts in State Owned Enterprises (CEOs, Executive Directors and equivalent grades), including Constitutional Commissions and grant aided institutions.

"A standardization/alignment exercise in remuneration including benefits for Constitutional Commissions, will also be undertaken to remove inequity and disparities," he said.

He announced that civil servants will receive their bonuses before the end of the year.

"Government appreciates the hard work its employees render in their various portfolios and services. For 2018 in particular, we close the year at a time when employees face a number of hardships.

"Accordingly, Government has taken the position that bonus be payable for 2018, with commitment that these payments be processed before year end.

"Traditionally, payment of the 13th Cheque is computed as the sum of Basic Salary, Housing and Transport allowances. Previously, the Budget incurred expenditure of around US$174.6 million in bonus payment," he said.

"In light of the resolve to ensure that expenditure commitments do not further worsen challenges associated with deficit financing that have placed us in the prevailing difficult situation that we find ourselves in, the 13th Cheque is, henceforth, computed based on Basic Salary only (excluding housing and transport allowances)," added Mthuli.

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