Government has with immediate effect announced a salary adjustment and a United States dollar pegged Covid-19 allowance for the Civil Service and pensioners.
In a statement by the Ministry of Finance and Economic Development, government announced a 50 percent increase in civil servants salaries with effect from June.
“Pursuant to government commitment to continuously review and improve remuneration framework for Civil servants taking into account the transitory economic challenges being currently experienced in the country which has been exacerbated by the Covid-19 pandemic, Government makes the following announcement, with immediate effect all civil servants salaries will be adjusted by 50%,” reads the statement.
Treasury also said the increase also applies to pensioners and they will get a Covid-19 allowance.
“This increase also applies to all Government pensioners. In addition Civil servants will be paid a flat, non-taxable, Covid-19 allowance of US$75.00 per month .Government pensioners will be paid a non-taxable, Covid-19 allowance of US$30 per month.”
The adjustment, Government says was taken as a way of addressing the wage challenges and in an approach that does not impose negative shock in the market.
“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 to ensure that such a review does not impose a negative shock in the market,” said the statement
The latest arrangements takes effect from June 2020 and will lapse in August 2020 with government urging Civil Servants to immediately open Foreign Currency accounts with their banks.
“The interim arrangement is for period 3 months, starting from June 2020. 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 announcement by treasury amidst discontent among civil servant with health workers at Parirenyatwa hospital engaging in a demonstration over poor remuneration.