Civil servants will this year be paid their bonuses in foreign currency up to a maximum of US$700 and civil service pensioners will receive bonus payments of US$100 plus an extra US$80 for spouses, after President Mnangagwa decided on a once-off cushion following challenges experienced this year due to exchange rate fluctuations.
Permanent Secretary for Finance and Economic Development Mr
George Guvamatanga, confirming the news last night in an interview, said those
civil servants with pay scales requiring more than US$700 will get the balance
in local currency.
The bonuses are set to be paid at the end of November.
Government is expected to pay out over US$90 million, a
large figure but one that Treasury can handle.
By last month, Zimbabwe had recorded US$7,2 billion in
foreign currency receipts, resulting in a positive current account of about
US$1,7 billion, that is more foreign currency had come in than had been spent.
At the same time the Government has its own foreign currency income since
duties and taxes on some imports and on local sales in foreign currency have to
be paid in foreign currency. So Treasury
has foreign exchange for bonuses.
Said Mr Guvamatanga: “It is true that we are paying bonuses
in US dollars. It is a once-off gesture by the President to civil servants and
pensioners.”
A letter signed by Mr Guvamatanga to the secretaries of the
three bodies that hire and regulate civil servants titled “2021 bonus payment”
and dated November 4 says payment of an annual bonus had become the norm in
Government, thereby creating a rational expectation among public servants each
year end.
The letter was addressed to secretary to the Public Service
Commission Ambassador Jonathan Wutawunashe, acting executive director Health
Services Board Mr Angelbert Mbengwa, and Judicial Service Commission secretary
Mr Walter Chikwana.
Mr Guvamatanga said over the years, payment of the 13th cheque
had been on pensionable emoluments (basic salary, housing and transport
allowances).
“Guided by the developments in the market and taking into
account the plight of workers and the need to cushion members from the adverse
effects of fluctuations in exchange rates and also taking into account the
proactive initiative by Government, Treasury advises that the 2021 13th cheque
be paid in foreign currency (US dollars) at 100 percent of the pensionable
emoluments, capped at a maximum of US$700 while those with pay scales exceeding
the balance of the 13th cheque will be payable in local currency.
“In light of the foregoing, it is recommended that
pensioners be equally cushioned on the basis of the following flat, once-off
amount per each category: own right US$100, spouse US$80, child US$60.
The three officers were expected to work out what was
required in each sector so that Treasury could make the preparations.
Mr Guvamatanga said it was critical that engagements with
workers start around the bonus offer so that it is not seen as an imposition,
but shows the consultative and negotiated process which the Government believes
in.
Engagements with banks, added Mr Guvamatanga, must also
start now to ensure smooth flow of payments.
President Mnangagwa’s administration has been pushing
forward on improving the lot of civil servants with regular salary increases as
tax revenue rises and now looking at provision of affordable houses, cheap
transport and regular reviews of earnings.
On November 8, the Zimbabwe Teachers’ Association (Zimta),
released a statement seeking payment of bonuses in forex. Herald
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