Chronicle Editor
Amanda Mlevu, Sunday News Reporter
CIVIL servants have said they are going to engage in salary talks with the Government to find common ground as they try to ensure that the US$300 Covid-19 cushioning allowance that was converted into a salary is not taxed.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube announced in the 2024 National Budget last month that the US$300 Covid-19 cushioning allowances paid to civil servants will be converted into a salary beginning January 2024.
This means that the allowances will be taxable, lowering the disposable income of civil servants.
Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) president, Mrs Cecilia Alexander said the although the budget proposal that converted the US$300 Covid-19 allowance into a salary was a welcome development, they were going to negotiate on the tax part.
“As civil servants we commend the Government for converting the US$300 Covid-19 allowance into salary. We are, however, going to negotiate for the salary to come as it used to without being taxed to increase our disposable income,” said Mrs Alexander.
She said the tax part might find civil servants in a worse situation.
She added that discussions were going to be part of the National Joint Negotiating Council (NJNC), which brings together the Government and workers that is set to convene in the first week of January.
Mrs Alexander said they had scheduled for the meeting this year but it failed to kick off due to other commitments but they will meet with the Government early January and negotiate on the issue of salaries.
The Government introduced a US$75 Covid-19 cushioning allowance in 2020 and has progressively increased it to US$300 but since it was an allowance, it was not subjected to taxation.
The allowance played a significant role in assisting civil servants ride the storm of economic hardships caused by, among other factors, exchange rate volatility and hyper-inflation in the past three years.
Civil servants have since been working towards having the Government to raise workers’ salaries to pre-October 2018 levels of US$540 per month for the least-paid employee.
Mrs Alexander said they were happy with their annual bonus that they received as civil servants as per agreement with the employer as the Second Republic continues to walk the talk on its promises to improve the welfare of Government workers.
“We are happy about how the Government kept its promise on the annual bonuses that we received in November and December,” said Mrs Alexander.
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