peterRobin Muchetu, Senior Reporter
The Government has with immediate effect awarded its workers a Covid-19 non taxable allowance of US$75 and a salary increase of 50 percent.
Government pensioners will also have their pensions hiked by the same percentage on top of US$30 Covid-10 allowance in a move meant to cushion them against the rising cost of living.
In a statement on Wednesday, the Ministry of Finance and Economic Development said this was interim relief for the next three months while a sustainable framework is being worked out.
“Pursuant to Government’s commitment to continuously review and improve the remuneration framework for civil servants, taking in to account the transitory economic challenges being currently being experienced in the country which has been exacerbated by the Covid-19 pandemic, government makes the following announcement;
“Immediate affect all civil servants salaries will be adjusted upwards by 50 percent. This increase also applies to all Government pensioners. In addition all civil servants will be paid a flat non-taxable Covid-19 allowance of US$75 allowance per month,” read the statement.
Government pensioners will now be paid a flat non-taxable Covid-19 allowance of US$30 per month.
The Ministry said Government has taken due regard of the fact that addressing the wage challenges first 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 no impose a negative shock in the market.
Civil servants have been therefore advised to immediately open USD denominated Nostro bank accounts with their banks in order to smoothen the process of payment.
Government said it is also widening the remuneration framework for civil servants to introduce significant non-monetary benefits and these will be announced in due course.
The Government said it was working on a sustainable model that will be used in the remuneration of the civil service in the future.
“Government would therefore wish for wish to advise members of the civil service that the above interim adjustments have been put in place whilst a comprehensive impact assessment and a framework for militating against the downside macro-economic risk of the wage proposals made to the government on the budget the economy are being carefully worked out,” they stressed.
Government said it reiterates its commitment to payment of a living wage to its employee’s whilst ensuring sustainability of the budget.
Online Reporter